practicable date.
23,082,996 shares outstanding as of March 4, 1994DOCUMENTS INCORPORATED BY REFERENCE
The definitive Proxy Statement for the 1994 Annual Shareholders
Meeting is incorporated by reference into Part III hereof. The registrant's
Annual Report to Shareholders for the year ended January 1, 1994 is
incorporated by reference into Part II and Part IV, Item 14, hereof.
PART I ITEM 1. Business
General
LADD Furniture, Inc. is a vertically integrated manufacturer
that is primarily engaged in the design, manufacture and sale of
wood, metal, and upholstered furniture in various price ranges
through its operating entities consisting of wholly owned
subsidiaries and operating divisions. Unless the context
otherwise indicates, "LADD" and "Company" refer to LADD
Furniture, Inc., its divisions, and consolidated subsidiaries.
Significant Developments in 1993
Acquisition of Pilliod Furniture -- On January 31, 1994, the
Company acquired the furniture operations of The Pilliod Cabinet
Company throughthe purchase of all of the outstanding stock of
its parent company, Pilliod Holding Company. The Company's new
wholly-owned subsidiary, Pilliod Furniture, Inc. ("Pilliod") is a
major U.S. manufacturer of promotionally-priced, residential wood
furniture. Pilliod's master bedroom and other furniture lines
compliment products made and marketed by LADD's nine other
furniture companies.
Manufacturing Realignment -- In August 1993, the Company
decided to discontinue much of its American of Martinsville
Residential Casegoods ("Residential Casegoods") product lines
which were unprofitable and to merge certain profitable lines
into its American Drew operating division. As a result of this
decision, manufacturing capacity in Residential Casegoods'
Martinsville, Virginia facility became available for other
purposes. To utilize the capacity, the Company shifted
manufacturing production of American of Martinsville-Contract
("Contract") from Chilhowie, Virginia and Marion, Virginia to
Martinsville, Virginia, the location of Contract's upholstery
manufacturing and executive offices. Finally, to accommodate
current and anticipated