Shareholders asked to support Sun Capital's slate of nominees at Furniture Brands' annual meeting May 1

By Lisa Kerner

Charlotte, N.C., April 29 - SCSF Equities, LLC and its affiliates (together, Sun Capital) once again reached out to shareholders of Furniture Brands International, Inc. seeking support for Sun Capital's director nominees at the annual meeting on May 1.

Shareholders were asked in an April 29 letter to vote the gold proxy card to elect Alan Schwartz, Sterling Professor of Law at Yale Law School; Ira Kaplan, chief financial officer of Claire's Stores Inc.; and T. Scott King, managing director of Sun Capital Partners, Inc. to Furniture Brands' board of directors.

Furniture Brands and Sun Capital have been involved in a public war of words throughout the month of April over director nominees and company operations.

Sun Capital's nominees, if elected, plan to implement a "more dynamic turnaround strategy" and pursue strategic alternatives, the investor said in the letter.

According to Sun Capital, RiskMetrics Group - ISS Governance Services, Glass Lewis & Co. and Egan-Jones Proxy Services have each expressed support for the investors' nominees.

Sun Capital said that as Furniture Brands' second-largest shareholder with a 9.45% ownership stake, its interests are aligned with those of the shareholders.

It was previously reported that Sun Capital said Furniture Brands' board succession plan is simply "an attempt to avoid a shareholder referendum on the board's performance" as well as an "apparent disregard for shareholders' rights."

On April 24, Furniture Brands said it plans to name replacements for board members Richard B. Loynd and Albert E. Suter during the second or third quarter of 2008 after which the two will retire.

Loynd and Suter will stand for re-election to the board at the company's annual meeting on May 1, a prior news release stated.

Furniture Brands told its shareholders in an April 25 letter that its succession process will "provide directors who are carefully screened to bring the most appropriate talents and experience to enhance Furniture Brands' board, who are truly independent, and who represent the interests of all stockholders rather than the agenda of one."

The company asked shareholders to support its slate of nominees for election to the board, citing Furniture Brands' profitability, cash, low debt and new executive leadership team.

Furniture Brands is a Hickory, N.C., furniture company.

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