The US Bankruptcy Court for the District of Delaware accepted KPS Capital Partners' bid for Furniture Brands International. The offer for the bankrupt furniture maker was USD280 million. This was according to report published by Daily Journal.

Furniture Brands filed for Chapter 11 bankruptcy on September 9. Oaktree Capital Management gave an initial bid of USD166 million for the company. The bid, however, did not include Lane Furniture Industries in the purchase. Lane is Tupelo-based brand of the furniture company. Lane employs around 1,400 people in Northeast Mississippi, the report said.

Oaktree was the first stalking horse bidder of Furniture Brands. KPS said it wanted to include Lane in its bid. After a bidding war, Oaktree upped its offer to USD260 million. KPS gave a last bid which was USD20 million higher. That amount was approved by a judge on Friday, said the report.

KPS and Furniture brands expect to close the deal within the next several working days, Daily Journal reported.