Authentic Brands Group has paired with Jay Schottenstein to win the bid for Heritage Home Group following a bankruptcy auction.

The newly-formed entity will purchase the IP of Heritage Home Group’s proprietary brands, which include Thomasville, Broyhill, Drexel and Henredon. ABG will take a majority stake.

“This is a significant step in ABG’s development as the acquisition puts us firmly in the home furnishings business,” says Jamie Salter, chairman and chief executive officer, ABG. “We’ve been looking at this sector for several years, and the Heritage Home brands deliver against our strategic focus of both growing and diversifying the ABG portfolio. Each of these brands has a unique history and tremendous consumer equity that positions them for global expansion.”

ABG is set to announce new operating partners to create upholstered furniture and case goods for the brands. ABG will also extend the brands into new product categories.

The sale is subject to approval by the U.S. Bankruptcy Court and is expected to close in Q4 of 2018.