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Home Interiors and Gifts, the Dallas Based home good company that has had its fair share of financial troubles lately, has just been purchased by Home and Garden Party.

We had first reported about Home and Garden’s problems back in September when the company sent out a warning to employees.

Home and Garden Party, founded in 1996 in Marshall, Texas, has become a leader in the direct sales industry over the last decade. The company, founded by Penny and Steven Carlile purchased the assets of the U.S., Canadian and Puerto Rican assets of Home Interiors and Gifts last Thursday.

Carlile was pleased with the acquisition and the potential for success the joining of the two companies will have in the future. “Home Interiors has a storied history in the direct sales business for the past 51 years and has been a leader in this business for much of that time,” said Steve Carlile. “We’re very pleased to join forces with them going forward.”

Home Interiors was forced to file Chapter 11 to reorganize the company’s business and restructure its debt. Robin Crossman, the high profile CEO who was brought in last year to save the company released a statement regarding the announcement saying, “I am so proud of the Home Interiors field and the dedication they have to the heritage of Mary Crowley” (the company’s founder).

Penny and Steve Carlile issued a joint statement regarding the future of the two companies, “With all the necessary funds in reserve to complete the transaction, we can quickly and effectively assure the consultants of Home Interior that we’re committed to protecting the legacy of Mary Crowley and Home Interiors by building on the solid foundation that Home and Garden Party has enjoyed.”

The company will remain headquartered in Marshall. All parties involved hope that the acquisition will result in more jobs in the community in the coming months.

No word on what happens to the company’s status as part of the Direct Selling Association now that the company has been taken over.

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Belegured home goods company, Home Interiors and Gifts, which in the past few months has had some major problems including bankruptcy and the announcement that they will seek a buyer for the company, has now notified employees at its Carrollton facility that the attempts to sell its operating entities is likely to have an impact on their jobs in the next few months.

I’m sure this comes as no surprise to the employees who have known for months now that the company is in some trouble. The company filed for bankruptcy some months ago, but was making an effort to turn things around. Unfortunately, those attempts were futile and last week the company asked for, and received permission from the U.S Bankruptcy court of Northern District of Texas for approval to sell its operating entities.

In a letter filed this past week with the Texas Workforce Commission Home Interiors says employees have been informed on the impact the sale could have on future employment. The company did say however, that the sale of the assets could also potentially lead to opportunities to staff members. “The company continues to conduct operations,” Home Interiors & Gifts said in the letter. “It’s possible potential buyer(s) of the company’s assets will hire employees who received Warn Act notices, although the company cannot make any guarantee.”

Currently there are over 130 employees at the Carrollton facilities. While I commend the company for finally warning employees of the possible termination of their positions, although a bit late in the game, it would also be great if they released a statement to their distributors. The distributors have given their time, and money, and committed themselves to working for the company. The distributors are the ones that have kept the company going. It would be great if they could be honest with those distributors about what a sale of assets could do to their employment as well. And of course, needless to say, still no word from the protective folks over at the DSA.   It’s great to know how on top of these things the Direct Selling Association is - makes ya really confident in their ability to provide timely information to the people that subsidize their business and salaries.

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As we reported earlier, DSA Member company and struggling Network Marketing company, Home Interiors seems to have failed to emerge from bankruptcy after a reorganization process and is putting its assets up for sale.

Word is that executives at the firm are expected to submit bids to purchase some of its assets.

Home Interiors sells candles, artificial flowers and other home decor accessories through thousands of independent contractors.

“Parts of this thing are probably worth more than the whole,” said William Snyder, the company’s chief restructuring officer.

The new plan could mean more job losses at the company’s headquarters, he said. More than 300 people worked for Home Interiors when it filed for bankruptcy in April; the company now has 131 employees.

Under the new plan:

• Home Interiors’ business assets in the U.S., Canada and Puerto Rico will be offered as a single unit. Robin Crossman, the company’s president and chief executive, is leading a group expected to bid for only some of these assets.

• The company’s Mexican unit will be offered separately. Fabian Uribarren, president of that unit, is heading a team that is likely to purchase that entity.

•Domistyle Inc., a Dallas manufacturer and distributor of home fragrances and decor accessories that Home Interiors bought in 2002, will be offered as an independent company. Brenda Buell, Domistyle’s founder and president, is leading a team in the running to purchase Domistyle.

•The Laredo Candle unit will be offered as a separate entity, although it may be included as part of the Domistyle sale.

Mr. Snyder said Home Interiors’ largest shareholder and creditor, Highland Capital Management LP of Dallas, supports the plan. A spokesman for Highland declined to comment beyond a Home Interiors news release.

Mr. Snyder said he expects other creditors to support the plan as well.

Home Interiors was founded in 1957 by Mary Crowley; she and her son Don Carter built it into a Dallas landmark.

We will keep you up to date on this as it progresses.

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As we told you a few months ago, direct sales company Home Interiors and Gifts, has been struggling in the past year with declining sales, and a dwindling workforce. The company recently filed for bankruptcy protection. Now it seems they are on their way out.

The home goods company filed officially for Chapter 11 protection in April, and then began a restructuring of the company which included hiring Robin Crossman, a direct sales vet to help rebuild. Unfortunately, the company never got back on its feet. In June they were forced to lay off many employees and now it is looking to sell its operating entities. The Dallas based company announced that they are seeking approval from the U.S. Bankruptcy Court of the Northern District of Texas to sell its operating entities.

The home interiors and gifts company is looking hire investment banking firm Houlihan, Lokey Howard and Zukin Capital, Inc. to help with the sale. The company feels that the sale is the best way to get the highest return for the company’s stakeholders. .

A spokesperson for the company says that its operation in the U.S, Canada and Puerto Rico will be sold as one single unit while its Mexico and Domistyle, Inc subsidiary which is a home fragrance manufacturer will be sold as independent entities.

I’m not expert, but it seems like the company has been struggling for a looooong time and thing seem to be getting progressively worse, and not better. If I were a distributor of the company, I might think twice about staying involved, we all remember what happened with Weekenders. While I’m not sure if distributors have been notified by the company, at least the company itself has made the news public.

And….by the way…….Home Interiors and Gifts is a member of the DSA, yet there is no news on their site of the problems at the company. Good to know that once again the DSA is protecting their members and consumers by failing to report news on one of its member companies selling its assets.

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