Executives at Chromcraft Revington Inc. are in negotiations to buy the West Lafayette-based furniture maker in a tentative deal that values the company at $5 million.
The firm announced Thursday that “certain members of its management team” are interested in acquiring the company. Chromcraft has entered into a non-binding letter of intent and term sheet with RMMJ LLC, a company led by Ronald H. Hunter, Chromcraft's chairman and CEO, according to a prepared statement.
Under the terms contemplated by the parties, a subsidiary of RMMJ would merge with Chromcraft, with Chromcraft then becoming a subsidiary of RMMJ. They estimate the value of the company at $5 million, with record stockholders receiving cash for common shares in the potential purchase.
The company stressed Thursday that there was no definitive agreement and that the terms could change.
Earlier this month, the firm foreshadowed its intentions to go private by announcing that it would delist its common stock from the New York Stock Exchange, as well as suspend its reporting obligations as a public company.
The company also said on Thursday that it has violated U.S. securities rules by failing to file a 2012 annual report with the Securities and Exchange Commission by an April 16 deadline. The company now expects to file the report on or before May 31.