Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, May 18, 1990 TAG: 9005180150
SECTION: BUSINESS PAGE: B4 EDITION: METRO
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE: LENGTH: Medium
The company was acquired in a leveraged buyout from an investment group led by Paul Bilzerian, a corporate raider convicted of securities fraud.
The buyers did not report the terms of the debt financing, but Dennis Ammons, the new president and chief operating officer, said, "Our interest burden per month won't take us under."
Financing was handled by Congress Financial South of Atlanta.
The balance sheet "looks pretty good and the interest will be handled from continuing operations," he said.
Ammons, 43, has been operations vice president. A veteran of 12 years with Singer, he is president of the manufacturing division of American Furniture Manufacturers Association. He graduated from North Carolina State University and formerly held managerial posts at American of Martinsville and Burlington Industries.
Singer's headquarters will remain in Roanoke and its officers live here. The company's new owner, SFC Holding Co., acquired control from Bilzerian Partners Ltd., Partnership I.
Singer, cut back by the closing of a North Carolina plant and scattered layoffs, consists of eight plants with a work force of 2,100.
The Roanoke bedroom furniture plant, largest in the company, has 525 employees. Six other plants are at Lenoir, N.C. and one is at Washington, N.C.
The acquisition by management ends a period of uncertainty over the possibility of Bilzerian breaking up the company, according to a North Carolina furniture industry observer, who asked not to be identified.
Szilagyi, formerly in strategic planning for the Singer Co., has been cutting costs and tightening up the company since he was named president last year.
Szilagyi said organizational changes have been made to accelerate the product, cost and quality programs started last fall.
Other top operating officers are Walter E. Matthews, vice president finance and treasurer, and William G. Foster, vice president administration. The four officers led in the buyout, the company said.
Matthews, 42, a graduate of Elon College, joined Singer in 1979 and moved up to controller and financial officer.
Foster, 50, has a new post, combining customer service and quality assurance functions, designed "to further enhance customer responsiveness," the company announcement said. A graduate of Wake Forest University, he holds a master's degree from Drury College. He worked for Barclay's American Corp. as director of customer relations and credit until he joined Singer in 1976.
The Singer plant on Hollins Road Northeast has had a number of owners since it started as Johnson-Carper Furniture in 1927. The late Donald L. Jordan headed the company for many years until its 11 plants were sold to the Singer Co. in 1969.
About four years ago, Singer decided to leave the furniture and sewing machine business, spinning them off into a separate company known as SSMC Inc. Last summer, SSMC was acquired by Semi-Tech Microelectronics (Far East) Ltd.
Semi-Tech sold the furniture operations to the Bilzerian group. Bilzerian and his associates also acquired the former Singer Co. and changed its name to Bicoastal Corp. Bicoastal filed for reorganization in bankruptcy.
by CNB