Pontotoc, MS - On July 28, 2004, AFM Holdings, LLC acquired 100% of the outstanding capital stock of American Furniture Manufacturing, Inc. (“AFM”). AFM Holdings, LLC was established by certain members of AFM's senior management team; Hampshire Equity Partners, a New York-based private equity firm; Hunt Private Equity Group, Inc., the private equity investment arm of the Ray Hunt family of Dallas; and Pittco Capital Partners, a Memphis-based private investment firm.

AFM is the leading manufacturer and supplier of upholstered furniture for the promotional market segment (primarily $99 to $499 retail price points with some products up to $799-$899). AFM offers a full line of popular stationary and motion sofas, loveseats, and reclining and occasional chairs sold through a diverse group of leading local, regional and national retailers and distributors throughout North America. The Company has grown rapidly since its founding in 1998 by offering retailers a line of high quality products at competitive prices and 48-hour delivery on its complete product line.

“AFM is the leading player in the large and growing promotional upholstery segment, and any time you get the opportunity to buy a company in a leading market position, it's exciting,” noted Jason Meyer, Principal at Hampshire Equity Partners. “We think there is solid growth available by simply doing what the company has always done: ship quality product within 48 hours at competitive prices.”

AFM will continue to operate its business consistent with its strategy under the prior ownership group, with management based in Northeastern Mississippi maintaining its focus on manufacturing quality and efficiency while taking advantage of the growth opportunities offered by new product categories.

“We believe that American Furniture offers an opportunity to leverage off the company's core values, namely a focused product line in all promotional upholstery product categories, a lean manufacturing process, and responsive customer service and delivery, which have fostered the success that the company has achieved to date,” stated Robert Sussman, Vice President of Hunt Private Equity Group. “We see significant growth potential through the further development of its offerings in new categories like its occasional chair and motion sofa lines.”