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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: September 16, 1999
(Date of earliest event reported)
Fairwood Corporation
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(Exact name of registrant as specified in its charter)
Commission file number 0-18446
Delaware 13-3472113
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Commerce Center
1201 N. Orange St., Suite 790, Wilmington, DE 19801
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(Address of principal executive offices) (Zip Code)
(302) 884-6749
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(Registrant's telephone number, including area code)
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Item 5.
On September 16, 1999, Barcalounger Division, the sole operating
division of Futorian Furnishings, Inc. ("Futorian"), incurred substantial
damage due to floods caused by heavy rains as a result of hurricane Floyd.
Futorian is a wholly owned subsidiary of Consolidated Furniture Corporation
("Consolidated Furniture"), which is a wholly owned subsidiary of the
Registrant.
It is estimated that damages to inventory were approximately $6 million
dollars. This amount includes the destruction of all finished inventory,
approximately 95% of work in process and approximately 50% of raw materials.
Losses to plant equipment, computers, office furniture and other personal
property were estimated to be no more than approximately $.5 million. Lost
sales of approximately $4 million are likely to result from the plant being
closed for approximately three weeks. Barcalounger currently estimates a
reduction in earnings due to the damages suffered, net of insurance proceeds,
to be $1.5 to $2 million.
Barcalounger reopened and resumed limited production on October 1,
1999. Barcalounger expects to reach at least ninety percent production
capacity by the week of October 18, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FAIRWOOD CORPORATION
Date: October 5, 1999 By: /s/ John B. Sganga
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John B. Sganga
Chief Financial Officer,
Executive Vice President,
Secretary and Treasurer
