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New Owner Saves Norwalk Furniture From Closing

Furniture company will stay in business under new ownership, helped by $4 million in loans from officials in Ohio and Mississippi.

NORWALK, Ohio (AP) -- A furniture company will stay in business under new ownership, helped by $4 million in loans from officials in Ohio and Mississippi.

Investment firms IRG Capital Group and Blackbird Capital Partners announced a deal on Monday to acquire Norwalk Furniture, based in Norwalk in northern Ohio. With a national housing slump hurting furniture sales, the company suspended operations last month after a bank called its loan.

Terms of the sale were not disclosed.

A news release says the company's restructuring plan includes a $2 million low-interest state loan from Ohio and a matching one from city and county officials in Fulton, Miss., where Norwalk Furniture has a factory with 300 employees.

About 500 work at the headquarters and a factory in Norwalk.

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