A Chinese company has signed a letter of intent to acquire Mor Furniture for Less’ 36 stores, including the one in Richland.
Healthcare Co. Ltd. expects to pay $68.4 million for the furniture chain, and the transaction should be completed by the end of October.
Healthcare Co. will operate the stores separately, each with a different team of executives with direct reports to China.
The Richland store is at 1430 Tapteal Drive, near Kohl’s.
The San Diego-based Mor Furniture has estimated annual sales of more than $310 million.
Healthcare Co. calls itself a global home furnishings juggernaut, with 20 holding companies globally, including MLILY USA, a mattress manufacturer based in Knoxville, Tennessee.
The Mor Furniture acquisition will give Healthcare a direct pipeline to better understand U.S. retailers and customers, according to a news release from the company.
“The direct day-to-day contact with consumers through Mor’s vibrant retail locations gives us the opportunity to gather critical information about consumer shopping behavior in the U.S.,” said James Ni, chairman and chief executive officer of Healthcare Co, in a news release. “Direct consumer interaction will help us hone our (original equipment manufacturer) product development and better serve our growing network of customers throughout the world.”
Healthcare will acquire the chain from Mor Furniture founder Richard Haux Sr. and a number of other Haux family members.
Haux founded the San Diego-based company in 1977 as a small waterbed store.
Today, Mor operates large-format stores in seven states: Washington, California, Nevada, Oregon, Idaho, New Mexico and Arizona.
The Mor acquisition will be the second retail acquisition by Healthcare in the last 18 months, but its first in the United States. Last year, Healthcare acquired Maxcolchon, a Spanish bedding manufacturer and retailer, and now operates 57 stores across Spain.
Healthcare operates factories in China, Serbia and Thailand. In addition to the United States, the company serves markets in Europe, the Middle East and North Africa.
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