|   | (Mark                one)                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                   |
| x      | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE                ACT OF                1934  |
|   | For                the                quarterly period ended  September 30, 2007 or                                          |
|   |                                                                                                                                   |
| ¨ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|   | For                the                transition period from ____________ to ____________                                              |
|   |                                                                                                                                   |
|   | Commission                file number 001-00091                                                                                        |

| Furniture                Brands International, Inc.                                                 |
|-----------------------------------------------------------------------------------------------------|
| (Exact                name                of registrant as specified in its                charter) |

| Delaware                                                      |   | 43-0337683                         |
|---------------------------------------------------------------|--------|------------------------------------|
| (State                or                other jurisdiction of |   | (I.R.S.                Employer    |
| incorporation                or organization)                 |   | Identification                No.) |

| 101                South                Hanley Road, St. Louis, Missouri |   | 63105                     |
|--------------------------------------------------------------------------|--------|---------------------------|
| (Address                of                principal executive offices)   |   | (Zip                Code) |

|   |   | (314)                863-1100                                                           |
|--------|--------|-----------------------------------------------------------------------------------------|
|   |   | (Registrant’s                telephone number, including area                code |

| Former                name,                former address and former fiscal year, if changed since last                report |
|-------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                          |

|   |   | ý                Yes                      o                No |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Large                Accelerated Filer  ý | Accelerated                Filer  o | Non-Accelerated                Filer  o |
|----------------------------------------------------------|-----------------------------------------------|---------------------------------------------------|

|   | Indicate                by                check mark whether the registrant is a shell company (as defined                in rule                12b-2 of the Exchange Act). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | o                Yes                      ý                No |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| PART                I.                FINANCIAL INFORMATION                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                             |
| Item                1.                Financial Statements                                                                                       |
|                                                                                                                                             |
| Consolidated                Financial Statements for the quarter ended September 30,                2007.                                        |
|                                                                                                                                             |
| Consolidated                Balance Sheets:                                                                                                      |
|                                                                                                                                             |
| September                30,                2007                                                                                                 |
| December                31,                2006                                                                                                  |
|                                                                                                                                             |
| Consolidated                Statements of Operations:                                                                                            |
|                                                                                                                                             |
| Three                Months                Ended September 30, 2007                                                                              |
| Three                Months                Ended September 30, 2006                                                                              |
| Nine                Months                Ended September 30, 2007                                                                               |
| Nine                Months                Ended September 30, 2006                                                                               |
|                                                                                                                                             |
| Consolidated                Statements of Cash Flows:                                                                                            |
|                                                                                                                                             |
| Nine                Months                Ended September 30, 2007                                                                               |
| Nine                Months                Ended September 30, 2006                                                                               |
|                                                                                                                                             |
| Notes                to                Consolidated Financial Statements                                                                         |
|                                                                                                                                             |
| Item                2.                Management’s Discussion and Analysis of Financial Condition and Results of                Operations |
|                                                                                                                                             |
| Item                3.                Quantitative and Qualitative Disclosures about Market                Risk                                  |
|                                                                                                                                             |
| Item                4.                Controls and Procedures                                                                                    |
|                                                                                                                                             |
| PART                II.                OTHER INFORMATION                                                                                         |
|                                                                                                                                             |
| Item                1A. Risk                Factors                                                                                              |
|                                                                                                                                             |
| Item                6.                Exhibits                                                                                                   |
|                                                                                                                                             |
| Certification                of Chief Executive Officer                                                                                          |
| Certification                of Principal Financial Officer                                                                                      |
| 906                Certification of CEO                                                                                                          |
| 906                Certification of PFO                                                                                                          |

----

**PART      I -      FINANCIAL INFORMATION**

**Item      1.      FINANCIAL STATEMENTS**

|                                                                                                                                                                                                                                                                                                                                                                  |   | September                30, 2007 |      |   | December                31,2006 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-----------|--------|---------------------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                |   | (unaudited)                            |      |   |                            |   |
| Current                assets:                                                                                                                                                                                                                                                                                                               |   |                                   |      |   |                            |   |
| Cash                and cash                equivalents                                                                                                                                                                                                                                                                                      |   | $                                      | 92,190    |   |                            | $      | 26,565 |   |
| Receivables,                less allowances of $28,638($29,025                at                December 31, 2006)                                                                                                                                                                                                                           |   |                                   | 329,517   |   |                            |   | 362,557 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                  |   |                                   | 477,721   |   |                            |   | 502,070 |   |
| Deferred                income taxes                                                                                                                                                                                                                                                                                                         |   |                                   | 29,350    |   |                            |   | 31,600 |   |
| Prepaid                expenses and other current                assets                                                                                                                                                                                                                                                                      |   |                                   | 16,044    |   |                            |   | 18,382 |   |
| Total                current                assets                                                                                                                                                                                                                                                                                           |   |                                   | 944,822   |   |                            |   | 941,174 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |                            |   |   |   |
| Property,                plant and equipment                                                                                                                                                                                                                                                                                                 |   |                                   | 558,661   |   |                            |   | 609,991 |   |
| Less                accumulated depreciation                                                                                                                                                                                                                                                                                                 |   |                                   | 353,821   |   |                            |   | 388,593 |   |
| Net                property,                plant and equipment                                                                                                                                                                                                                                                                              |   |                                   | 204,840   |   |                            |   | 221,398 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |                            |   |   |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                     |   |                                   | 182,652   |   |                            |   | 182,652 |   |
| Other                intangible assets                                                                                                                                                                                                                                                                                                       |   |                                   | 162,571   |   |                            |   | 169,671 |   |
| Other                assets                                                                                                                                                                                                                                                                                                                  |   |                                   | 37,593    |   |                            |   | 43,308 |   |
| Total                assets                                                                                                                                                                                                                                                                                                                  |   | $                                      | 1,532,478 |   |                            | $      | 1,558,203 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |                            |   |   |   |
| LIABILITIES                AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                    |   |                                   |      |   |                            |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                                          |   |                                   |      |   |                            |   |   |   |
| Current                maturities of long-term debt                                                                                                                                                                                                                                                                                                                   |   | $                                      | 800       |   |                            | $      | 10,800 |   |
| Accounts                payable                                                                                                                                                                                                                                                                                                              |   |                                   | 114,861   |   |                            |   | 94,515 |   |
| Accrued                employee compensation                                                                                                                                                                                                                                                                                                 |   |                                   | 28,532    |   |                            |   | 27,462 |   |
| Accrued                expenses and other current                liabilities                                                                                                                                                                                                                                                                 |   |                                   | 52,803    |   |                            |   | 55,779 |   |
| Total                current                liabilities                                                                                                                                                                                                                                                                                      |   |                                   | 196,996   |   |                            |   | 188,556 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |                            |   |   |   |
| Long-term                debt                                                                                                                                                                                                                                                                                                                |   |                                   | 300,000   |   |                            |   | 300,800 |   |
| Deferred                income taxes                                                                                                                                                                                                                                                                                                                                  |   |                                   | 36,366    |   |                            |   | 44,637 |   |
| Other                long-term                liabilities                                                                                                                                                                                                                                                                          |   |                                   | 108,161   |   |                            |   | 113,495 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |                            |   |   |   |
| Shareholders’                equity:                                                                                                                                                                                                                                                                                                   |   |                                   |      |   |                            |   |   |   |
| Preferred                stock, authorized 10,000,000shares,                no                par value – issued, none                                                                                                                                                                                                                 |   |                                   | —   |   |                            |   | — |   |
| Common                stock,                200,000,000 shares authorized,$1.00                stated                value – 56,482,541 issued and 48,498,252 outstanding at September                30,                2007 and 56,482,541 issued and 48,336,252 outstanding at                December                31, 2006      |   |                                   | 56,483    |   |                            |   | 56,483 |   |
| Paid-in                capital                                                                                                                                                                                                                                                                                                               |   |                                   | 226,880   |   |                            |   | 227,520 |   |
| Retained                earnings                                                                                                                                                                                                                                                                                                             |   |                                   | 817,166   |   |                            |   | 843,811 |   |
| Accumulated                other comprehensive income                (expense)                                                                                                                                                                                                                                                          |   |                                   | (29,320   | )      |                            |   | (33,188 | ) |
| Treasury                stock at cost (7,984,289 shares at September 30, 2007and                8,146,289                shares at December 31, 2006)                                                                                                                                                                                        |   |                                   | (180,254  | )      |                            |   | (183,911 | ) |
| Total                shareholders’ equity                                                                                                                                                                                                                                                                                              |   |                                   | 890,955   |   |                            |   | 910,715 |   |
| Total                liabilities and shareholders’                equity                                                                                                                                                                                                                                                               |   | $                                      | 1,532,478 |   |                            | $      | 1,558,203 |   |

----

|                                                                                   |   | Three                MonthsEndedSeptember                30,2007 |    |   | Three                MonthsEndedSeptember                30,2006 |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------|------------------------------------------------------------------|--------|
|                                                                                   |   |                                                             |    |   |                                                             |   |
| Net                sales                                                               |   | $                                                                | 516,337 |   |                                                             | $      | 568,917 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Cost                of                sales                                            |   |                                                             | 407,264 |   |                                                             |   | 446,150 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Gross                profit                                                            |   |                                                             | 109,073 |   |                                                             |   | 122,767 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Selling,                general and administrative expenses                            |   |                                                             | 110,819 |   |                                                             |   | 109,788 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Earnings                (loss) from operations                                         |   |                                                             | (1,746  | )      |                                                             |   | 12,979 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Interest                expense                                                        |   |                                                             | 20,570  |   |                                                             |   | 4,902 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Other                income,                net                                        |   |                                                             | 1,639   |   |                                                             |   | 870 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Earnings                (loss) before income tax expense (benefit)                     |   |                                                             | (20,677 | )      |                                                             |   | 8,947 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Income                tax                expense (benefit)                             |   |                                                             | (7,021  | )      |                                                             |   | 3,150 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Net                earnings                (loss)                                      |   | $                                                                | (13,656 | )      |                                                             | $      | 5,797 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Net                earnings                (loss) per common share - Basic and Diluted |   | $                                                                | (0.28   | )      |                                                             | $      | 0.12 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |
| Weighted                average common shares outstanding – Basic and Diluted    |   |                                                             | 48,498  |   |                                                             |   | 48,321 |   |
|                                                                                   |   |                                                             |    |   |                                                             |   |   |   |

----

|                                                                                         |   | Nine                MonthsEndedSeptember                30,2007 |      |   | Nine                MonthsEndedSeptember                30, 2006 |   |
|----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|-----------|--------|-----------------------------------------------------------------------|--------|
|                                                                                         |   |                                                            |      |   |                                                                  |   |
| Net                sales                                                                     |   | $                                                               | 1,625,307 |   |                                                                  | $      | 1,831,637 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Cost                of                sales                                                  |   |                                                            | 1,276,176 |   |                                                                  |   | 1,418,776 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Gross                profit                                                                  |   |                                                            | 349,131   |   |                                                                  |   | 412,861 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Selling,                general and administrative expenses                                  |   |                                                            | 331,519   |   |                                                                  |   | 332,372 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Earnings                from                operations                                       |   |                                                            | 17,612    |   |                                                                  |   | 80,489 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Interest                expense                                                              |   |                                                            | 31,862    |   |                                                                  |   | 12,590 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Other                income,                net                                              |   |                                                            | 8,043     |   |                                                                  |   | 13,448 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Earnings                (loss) before income tax expense (benefit)                           |   |                                                            | (6,207    | )      |                                                                  |   | 81,347 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Income                tax                expense (benefit)                                   |   |                                                            | (1,236    | )      |                                                                  |   | 28,350 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Net                earnings                (loss)                                            |   | $                                                               | (4,971    | )      |                                                                  | $      | 52,997 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Net                earnings                (loss) per common share – Basic and Diluted |   | $                                                               | (0.10     | )      |                                                                  | $      | 1.08 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |
| Weighted                average common shares outstanding – Basic and Diluted          |   |                                                            | 48,427    |   |                                                                  |   | 48,894 |   |
|                                                                                         |   |                                                            |      |   |                                                                  |   |   |   |

----

|                                                                                                                            |   | Nine                MonthsEndedSeptember                30,2007 |     |   | Nine                MonthsEndedSeptember                30,2006 |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|----------|--------|-----------------------------------------------------------------|--------|
| Cash                flows                from operating activities:                                                             |   |                                                            |     |   |                                                            |   |
| Net                earnings                (loss)                                                      |   | $                                                               | (4,971   | )      |                                                            | $      | 52,997 |   |
| Adjustments                to reconcile net earnings to net                cash                        |   |                                                            |     |   |                                                            |   |   |   |
| provided                by                operating activities:                                        |   |                                                            |     |   |                                                            |   |   |   |
| Depreciation                and amortization                                                           |   |                                                            | 23,071   |   |                                                            |   | 28,272 |   |
| Stock                compensation expense                                                              |   |                                                            | 3,017    |   |                                                            |   | 4,708 |   |
| Tax                benefit                from the exercise of stock                options            |   |                                                            | —  |   |                                                            |   | 527 |   |
| Provision                (benefit) for deferred income taxes                                                                    |   |                                                            | (1,935   | )      |                                                            |   | (9,975 | ) |
| Other,                net                                                                              |   |                                                            | 2,478    |   |                                                            |   | (5,851 | ) |
| Changes                in                operating assets and                liabilities:              |   |                                                            |     |   |                                                            |   |   |   |
| Accounts                receivable                                                                     |   |                                                            | 31,628   |   |                                                            |   | (11,004 | ) |
| Inventories                                                                                                                     |   |                                                            | 30,791   |   |                                                            |   | (84,023 | ) |
| Prepaid                expenses and other assets                                                                                |   |                                                            | 5,154    |   |                                                            |   | (6,031 | ) |
| Accounts                payable and other accrued                expenses                              |   |                                                            | 16,567   |   |                                                            |   | 5,997 |   |
| Other                long-term liabilities                                                             |   |                                                            | (2,438   | )      |                                                            |   | 14,738 |   |
| Net                cash                provided (used) by operating                activities          |   |                                                            | 103,362  |   |                                                            |   | (9,645 | ) |
|                                                                                                                            |   |                                                            |     |   |                                                            |   |   |   |
| Cash                flows                from investing activities:                                    |   |                                                            |     |   |                                                            |   |   |   |
| Acquisition                of stores, net of cash                acquired                              |   |                                                            | (4,241   | )      |                                                            |   | — |   |
| Proceeds                from                the disposal of assets                                     |   |                                                            | 15,999   |   |                                                            |   | 4,957 |   |
| Additions                to                property, plant and                equipment                |   |                                                            | (12,075  | )      |                                                            |   | (19,646 | ) |
| Net                cash used                by investing activities                                    |   |                                                            | (317     | )      |                                                            |   | (14,689 | ) |
|                                                                                                                            |   |                                                            |     |   |                                                            |   |   |   |
| Cash                flows                from financing activities:                                    |   |                                                            |     |   |                                                            |   |   |   |
| Proceeds                from                termination of cash flow                hedges             |   |                                                            | —  |   |                                                            |   | 8,623 |   |
| Payment                for                debt issuance costs                                                                   |   |                                                            | (3,365   | )      |                                                            |   | (1,212 | ) |
| Additions                to                debt                                                        |   |                                                            | 325,401  |   |                                                            |   | 450,000 |   |
| Payments                of                debt                                                         |   |                                                            | (336,201 | )      |                                                            |   | (450,800 | ) |
| Proceeds                from                the exercise of stock                options               |   |                                                            | —  |   |                                                            |   | 8,095 |   |
| Tax                benefit                from the exercise of stock options                                                    |   |                                                            | —  |   |                                                            |   | 527 |   |
| Payments                of                cash dividends                                                                        |   |                                                            | (23,255  | )      |                                                            |   | (23,536 | ) |
| Payments                for                the purchase of treasury                stock               |   |                                                            | —  |   |                                                            |   | (40,075 | ) |
| Net                cash used                by financing activities                                    |   |                                                            | (37,420  | )      |                                                            |   | (48,378 | ) |
|                                                                                                                            |   |                                                            |     |   |                                                            |   |   |   |
| Net                increase                (decrease) in cash and cash                equivalents      |   |                                                            | 65,625   |   |                                                            |   | (72,712 | ) |
| Cash                and cash                equivalents at beginning of period                                                  |   |                                                            | 26,565   |   |                                                            |   | 114,322 |   |
| Cash                and cash                equivalents at end of period                               |   | $                                                               | 92,190   |   |                                                            | $      | 41,610 |   |
|                                                                                                                            |   |                                                            |     |   |                                                            |   |   |   |
| Supplemental                disclosure:                                                                |   |                                                            |     |   |                                                            |   |   |   |
|                                                                                                                            |   |                                                            |     |   |                                                            |   |   |   |
| Cash                payments                for income taxes, net                                      |   | $                                                               | 4,154    |   |                                                            | $      | 50,370 |   |
|                                                                                                                            |   |                                                            |     |   |                                                            |   |   |   |
| Cash                payments                for interest expense                                       |   | $                                                               | 30,905   |   |                                                            | $      | 7,879 |   |

----

| (1) | BASIS                OF                PRESENTATION |
|-----|-----------------------------------------------------|

| (2) | INCOME                TAXES |
|-----|-----------------------------|

| (3) | ACQUISITIONS |
|-----|--------------|

----

| (4) | RESTRUCTURING                CHARGES |
|-----|--------------------------------------|

|                                                                      |   | Three                  MonthsEndedSeptember                  30,2007 |   |   | Three                  MonthsEndedSeptember                  30,2006 |   |   | Nine                  MonthsEndedSeptember                  30,2007 |   |   | Nine                  MonthsEndedSeptember                  30,2006 |   |
|---------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|
| Restructuring                  charges (benefits):                        |   |                                                                 |   |   |                                                                 |   |   |                                                                |   |   |                                                                |   |
| Costs                  to                  shutdown, cleanup,             |   |                                                                 |   |   |                                                                 |   |   |                                                                |   |   |                                                                |   |
| and                  vacate                  facilities                   |   | $                                                                    | 117    |   |                                                                 | $      | 1,002  |                                                                |   | $      | 497                                                                 |   |   | $ | 1,453 |   |
| One-time                  termination benefits                            |   |                                                                 | 1,093  |   |                                                                 |   | 912    |                                                                |   |   | 3,415                                                               |   |   |   | 2,047 |   |
| Asset                  sale                  gains, net of                |   |                                                                 |   |   |                                                                 |   |   |                                                                |   |   |                                                                |   |   |   |   |   |
| impairment                  charges                                       |   |                                                                 | (50    | )      |                                                                 |   | 2,761  |                                                                |   |   | (133                                                                | )      |   |   | 2,733 |   |
| Total                  restructuring charges                              |   | $                                                                    | 1,160  |   |                                                                 | $      | 4,675  |                                                                |   | $      | 3,779                                                               |   |   | $ | 6,233 |   |
|                                                                      |   |                                                                 |   |   |                                                                 |   |   |                                                                |   |   |                                                                |   |   |   |   |   |
| Statement                  of                  Operations classification: |   |                                                                 |   |   |                                                                 |   |   |                                                                |   |   |                                                                |   |   |   |   |   |
| Cost                  of                  sales                           |   | $                                                                    | 1,081  |   |                                                                 | $      | 2,647  |                                                                |   | $      | 2,661                                                               |   |   | $ | 4,161 |   |
| Selling,                  general and                                     |   |                                                                 |   |   |                                                                 |   |   |                                                                |   |   |                                                                |   |   |   |   |   |
| administration                  expenses                                  |   |                                                                 | 79     |   |                                                                 |   | 2,028  |                                                                |   |   | 1,118                                                               |   |   |   | 2,072 |   |
| Total                  restructuring charges                              |   | $                                                                    | 1,160  |   |                                                                 | $      | 4,675  |                                                                |   | $      | 3,779                                                               |   |   | $ | 6,233 |   |

| (5) | EARNINGS                PER                SHARE |
|-----|--------------------------------------------------|

|                                  |   | Three                MonthsEndedSeptember                30,2007 |   |   | Three                MonthsEndedSeptember                30,2006 |   |   | Nine                MonthsEndedSeptember                30,2007 |   |   | Nine                MonthsEndedSeptember                30,2006 |   |
|---------------------------------------|--------|------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
| Stock                options          |   |                                                             | 3,529  |   |                                                             |   | 3,922  |                                                            |   |   | 3,529                                                           |   |   |   | 3,922 |   |
| Average                exercise price |   | $                                                                | 23.33  |   |                                                             | $      | 24.35  |                                                            |   | $      | 23.33                                                           |   |   | $ | 24.35 |   |

| (6) | INVENTORIES |
|-----|-------------|

|   | Inventories                are summarized as follows: |
|--------|-------------------------------------------------------|

|                             |   | September                30,2007 |    |   | December                31,2006 |   |
|----------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
| Raw                materials     |   | $                                | 101,736 |   |                            | $      | 106,217 |   |
| Work-in-process                  |   |                             | 31,345  |   |                            |   | 35,411 |   |
| Finished                products |   |                             | 344,640 |   |                            |   | 360,442 |   |
|                             |   | $                                | 477,721 |   |                            | $      | 502,070 |   |

----

| (7) | INTANGIBLE                ASSETS |
|-----|----------------------------------|

| (8) | DEBT |
|-----|------|

|                                                       |   | September                30,2007 |    |   | December                31,2006 |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
| Revolving                credit facility – secured   |   | $                                | 300,000 |   |                            | $      | - |   |
| Revolving                credit facility – unsecured |   |                             | -       |   |                            |   | 160,000 |   |
| 6.83%                Senior                Notes           |   |                             | -       |   |                            |   | 150,000 |   |
| Other                                                      |   |                             | 800     |   |                            |   | 1,600 |   |
| Total                debt                                  |   |                             | 300,800 |   |                            |   | 311,600 |   |
| Less:                current                maturities     |   |                             | 800     |   |                            |   | 10,800 |   |
| Long-term                debt                              |   | $                                | 300,000 |   |                            | $      | 300,800 |   |

----

| (9) | OTHER                  LONG-TERM LIABILITIES |
|-----|----------------------------------------------|

|                             |   | September                30,2007 |    |   | December                31,2006 |   |
|----------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
| Pension                liability |   | $                                | 50,825  |   |                            | $      | 61,935 |   |
| Other                            |   |                             | 57,336  |   |                            |   | 51,560 |   |
|                             |   | $                                | 108,161 |   |                            | $      | 113,495 |   |

| (10) | CONTINGENT                LIABILITIES |
|------|---------------------------------------|

| (11) | RETIREMENT                PLANS |
|------|---------------------------------|

|                                                    |   | Three                MonthsEndedSeptember                30,2007 |   |   | Three                MonthsEndedSeptember                30,2006 |   |   | Nine                MonthsEndedSeptember                30,2007 |   |   | Nine                MonthsEndedSeptember                30,2006 |   |
|---------------------------------------------------------|--------|------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
| Service                cost                             |   | $                                                                | 1,125  |   |                                                             | $      | 1,191  |                                                            |   | $      | 3,374                                                           |   |   | $ | 4,091 |   |
| Interest                cost                            |   |                                                             | 6,337  |   |                                                             |   | 6,175  |                                                            |   |   | 19,011                                                          |   |   |   | 18,425 |   |
| Expected                return on plan assets           |   |                                                             | (6,566 | )      |                                                             |   | (6,374 | )                                                               |   |   | (19,698                                                         | )      |   |   | (19,124 | ) |
| Net                amortization and deferral            |   |                                                             | 1,292  |   |                                                             |   | 1,995  |                                                            |   |   | 3,804                                                           |   |   |   | 5,504 |   |
| Net                periodic                pension cost |   | $                                                                | 2,188  |   |                                                             | $      | 2,987  |                                                            |   | $      | 6,491                                                           |   |   | $ | 8,896 |   |

----

| (12) | COMPREHENSIVE                  INCOME |
|------|---------------------------------------|

|                                                                                                                                                                                                                      |   | Three                MonthsEndedSeptember                30,2007 |    |   | Three                MonthsEndedSeptember                30,2006 |   |    | Nine                MonthsEndedSeptember                30,2007 |   |   | Nine                MonthsEndedSeptember                30,2006 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------|------------------------------------------------------------------|--------|---------|-----------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                                                                                                                                                                                                      |   |                                                             |    |   |                                                             |   |    |                                                            |   |   |                                                            |   |
| Net                earnings                (loss)                                                                                                                                                                         |   | $                                                                | (13,656 | )      |                                                             | $      | 5,797   |                                                            |   | $      | (4,971                                                          | )      |   | $ | 52,997 |   |
| Other                comprehensive income    (expense),                net of tax:                                                                                                                    |   |                                                             |    |   |                                                             |   |    |                                                            |   |   |                                                            |   |   |   |   |   |
|     Change                in fair value of financial        instruments                accounted for as        hedges |   |                                                             | — |   |                                                             |   | — |                                                            |   |   | —                                                         |   |   |   | (5,663 | ) |
|     Pension                liability                                                                                                                                                                  |   |                                                             | 747     |   |                                                             |   | — |                                                            |   |   | 2,242                                                           |   |   |   | — |   |
|     Foreign                currency translation                                                                                                                                                       |   |                                                             | 510     |   |                                                             |   | 758     |                                                            |   |   | 1,626                                                           |   |   |   | 870 |   |
| Other                comprehensive income                                                                                                                                                                                 |   |                                                             |    |   |                                                             |   |    |                                                            |   |   |                                                            |   |   |   |   |   |
|     (expense)                                                                                                                                                                                         |   |                                                             | 1,257   |   |                                                             |   | 758     |                                                            |   |   | 3,868                                                           |   |   |   | (4,793 | ) |
| Total                comprehensive income (loss)                                                                                                                                                                          |   | $                                                                | (12,399 | )      |                                                             | $      | 6,555   |                                                            |   | $      | (1,103                                                          | )      |   | $ | 48,204 |   |

|                                                   |   | September                30,2007 |    |   | December                31,2006 |   |
|--------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
| Pension                liability                       |   | $                                | (31,680 | )      |                            | $      | (33,922 | ) |
| Foreign                currency translation            |   |                             | 2,360   |   |                            |   | 734 |   |
| Accumulated                other comprehensive expense |   | $                                | (29,320 | )      |                            | $      | (33,188 | ) |

----

| (13) | SUBSEQUENT                  EVENTS |
|------|------------------------------------|

|                                                    |   | September                30,2007(in                millions) |   |
|---------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| Cash                                                    |   | $                                                            | 0.3    |   |
| Accounts                receivable                      |   |                                                         | 6.5    |   |
| Inventories                                             |   |                                                         | 7.2    |   |
| Property,                plant and equipment, net       |   |                                                         | 2.9    |   |
| Goodwill                                                |   |                                                         | 14.3   |   |
| Other                assets                             |   |                                                         | 1.1    |   |
|   Total                assets                 |   | $                                                            | 32.3   |   |
|                                                    |   |                                                         |   |   |
| Accounts                payable and accrued expenses    |   | $                                                            | 11.6   |   |
| Equity                                                  |   |                                                         | 20.7   |   |
|   Total                liabilities and equity |   | $                                                            | 32.3   |   |

|   | On                October                31, 2007, we announced the completion of a thorough analysis of all                Company-owned stores. Those stores whose operations failed to meet                certain                financial benchmarks will be closed in the fourth quarter of 2007.                These                store closures will result in an estimated charge in the fourth quarter                of                2007 related to contract termination costs, one-time termination                benefits,                fixed asset costs and other associated costs of between $0.18 and                $0.22                per common share. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | RECENTLY                ISSUED ACCOUNTING PRONOUNCEMENT |
|------|---------------------------------------------------------|

----

**Item      2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS      AND RESULTS OF OPERATIONS**

**FORWARD-LOOKING      STATEMENTS**

**RESULTS      OF      OPERATIONS**

----

|                                                                                                                               |   | Three                Months                Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                                                               |   | September                30,                2007 |   |   | September                30,                2006 |   |
|                                                                                                                               |   | Dollars                                          |   |   | %                ofNet                Sales |   |   | Dollars |   |   | %                ofNet                Sales |   |
| Net                sales                                                                                                           |   | $                                                | 516.3  |   |   |   | 100.0 | % |   | $ | 568.9 |   |   |   | 100.0 | % |
| Cost                of                sales                                                               |   |                                             | 407.2  |   |   |   | 78.9 |   |   |   | 446.1 |   |   |   | 78.4 |   |
| Gross                profit                                                                               |   |                                             | 109.1  |   |   |   | 21.1 |   |   |   | 122.8 |   |   |   | 21.6 |   |
| Selling,                general and administrative                expenses                                |   |                                             | 110.8  |   |   |   | 21.4 |   |   |   | 109.8 |   |   |   | 19.3 |   |
| Earnings                (loss) from operations                                                            |   |                                             | (1.7   | ) |   |   | (0.3 | ) |   |   | 13.0 |   |   |   | 2.3 |   |
| Interest                expense                                                                           |   |                                             | 20.6   |   |   |   | 4.0 |   |   |   | 4.9 |   |   |   | 0.9 |   |
| Other                income,                net                                                           |   |                                             | 1.6    |   |   |   | 0.3 |   |   |   | 0.8 |   |   |   | 0.2 |   |
| Earnings                (loss) before income tax                expense                                   |   |                                             | (20.7  | ) |   |   | (4.0 | ) |   |   | 8.9 |   |   |   | 1.6 |   |
| Income                tax                expense (benefit)                                                                         |   |                                             | (7.0   | ) |   |   | (1.4 | ) |   |   | 3.1 |   |   |   | 0.6 |   |
| Net                earnings                (loss)                                                                                  |   | $                                                | (13.7  | ) |   |   | (2.6 | )% |   | $ | 5.8 |   |   |   | 1.0 | % |
|                                                                                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                earnings                (loss) per common share – basic    and                diluted |   | $                                                | (0.28  | ) |   |   | — |   |   | $ | 0.12 |   |   |   | — |   |

|                                                                                                                                                 |   | Nine                Months                Ended  |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                                                                                 |   | September                30,                2007 |    |   | September                30,                2006 |   |
|                                                                                                                                                 |   | Dollars                                          |    |   | %                ofNet                Sales |   |   | Dollars |   |   | %                ofNet                Sales |   |
| Net                sales                                                                                                                             |   | $                                                | 1,625.3 |   |   |   | 100.0 | % |   | $ | 1,831.6 |   |   |   | 100.0 | % |
| Cost                of                sales                                                                                 |   |                                             | 1,276.2 |   |   |   | 78.5 |   |   |   | 1,418.7 |   |   |   | 77.5 |   |
| Gross                profit                                                                                                 |   |                                             | 349.1   |   |   |   | 21.5 |   |   |   | 412.9 |   |   |   | 22.5 |   |
| Selling,                general and administrative                expenses                                                  |   |                                             | 331.5   |   |   |   | 20.4 |   |   |   | 332.4 |   |   |   | 18.1 |   |
| Earnings                from                operations                                                                      |   |                                             | 17.6    |   |   |   | 1.1 |   |   |   | 80.5 |   |   |   | 4.4 |   |
| Interest                expense                                                                                             |   |                                             | 31.9    |   |   |   | 2.0 |   |   |   | 12.6 |   |   |   | 0.7 |   |
| Other                income,                net                                                                             |   |                                             | 8.1     |   |   |   | 0.5 |   |   |   | 13.4 |   |   |   | 0.7 |   |
| Earnings                before income tax expense (benefit)                                                                                          |   |                                             | (6.2    | ) |   |   | (0.4 | ) |   |   | 81.3 |   |   |   | 4.4 |   |
| Income                tax                expense (benefit)                                                                                           |   |                                             | (1.2    | ) |   |   | (0.1 | ) |   |   | 28.3 |   |   |   | 1.5 |   |
| Net                earnings                (loss)                                                                                                    |   | $                                                | (5.0    | ) |   |   | (0.3 | )% |   | $ | 53.0 |   |   |   | 2.9 | % |
|                                                                                                                                                 |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                earnings                (loss) per common share – basic    and                diluted    |   | $                                                | (0.10   | ) |   |   | — |   |   | $ | 1.08 |   |   |   | — |   |

----

|                                                                  |   | Three                Months                Ended September 30, |    |   | Nine                Months                Ended September 30, |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------------------------|---------|--------|---------------------------------------------------------------|--------|
|                                                                  |   | 2007                                                           |    |   | 2006                                                          |   |   | 2007 |   |   | 2006 |   |
| Interest                income                                        |   | $                                                              | 1.2     |   |                                                          | $      | 0.5 |   |   | $ | 2.4 |   |   | $ | 2.3 |   |
| Gain                on                termination of hedge accounting |   |                                                           | — |   |                                                          |   | — |   |   |   | 4.1 |   |   |   | 8.5 |   |
| Other                                                                 |   |                                                           | 0.4     |   |                                                          |   | 0.3 |   |   |   | 1.6 |   |   |   | 2.6 |   |
|                                                                  |   | $                                                              | 1.6     |   |                                                          | $      | 0.8 |   |   | $ | 8.1 |   |   | $ | 13.4 |   |

**FINANCIAL      CONDITION**

----

|                                                       |   | September                30,2007 |   |   | December                31,2006 |   |
|------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
| Revolving                credit facility – secured   |   | $                                | 300.0  |   |                            | $      | - |   |
| Revolving                credit facility – unsecured |   |                             | -      |   |                            |   | 160.0 |   |
| 6.83%                Senior                Notes           |   |                             | -      |   |                            |   | 150.0 |   |
| Other                                                      |   |                             | 0.8    |   |                            |   | 1.6 |   |
| Total                debt                                  |   |                             | 300.8  |   |                            |   | 311.6 |   |
| Less:                current                maturities     |   |                             | 0.8    |   |                            |   | 10.8 |   |
| Long-term                debt                              |   | $                                | 300.0  |   |                            | $      | 300.8 |   |

----

|                                               |   | Less                than1                year |    |   | 1–                3Years |   |    | 4–                5Years |   |   | MoreThan                5Years |   |   | Total |    |
|----------------------------------------------------|--------|-----------------------------------------------|---------|--------|--------------------------------|--------|---------|--------------------------------|--------|--------|--------------------------------|--------|--------|-------|---------|
| Revolving                credit facility - secured |   | $                                             | — |   |                           | $      | — |                           |   | $      | 300.0                          |   |   | $     | — |   |   | $ | 300.0 |   |

----

**Item      3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT      MARKET RISK**

**Item      4**
**CONTROLS AND      PROCEDURES**

|   | (a) | The                Company’s management, with the                participation of the Company’s Chief Executive Officer and the Company’s                Controller and Chief Accounting Officer, in his capacity as principal                financial officer, evaluated the effectiveness of the Company’s disclosure                controls and procedures as of September 30,                2007. The term “disclosure                controls and procedures” as defined in Rules 13a-15(e) and 15d-15(e) under                the Exchange Act, means controls and other procedures of a company                that                are designed to ensure that information required to be disclosed                by a                company in the reports that it files or submits under the Exchange                Act is                recorded, processed, summarized and reported, within the time periods                specified in the SEC’s rules and forms. Disclosure controls and procedures                include, without limitation, controls and procedures designed to                ensure                information required to be disclosed by a company in the reports                that it                files or submits under the Exchange Act is accumulated and communicated                to                the company’s management, including its principal executive and principal                financial officers, as appropriate to allow timely decisions regarding                required disclosure. Management recognizes that any controls and                procedures, no matter how well designed and operated, can provide                only                reasonable assurance of achieving their objectives and management                necessarily applies its judgment in evaluating the cost-benefit                relationship of possible controls and procedures. Based on the evaluation                of the Company’s disclosure controls and procedures as of September 30,                2007, the Company’s Chief                Executive Officer and its Controller                and Chief Accounting                Officer, in his capacity as principal financial officer, concluded                that,                as of such date, the Company’s disclosure controls and procedures were                effective at the reasonable assurance                level. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | No                change in                our internal control over financial reporting (as defined in Rules                13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the                three                months ended September 30, 2007 that has materially affected, or                is                reasonably likely to materially affect, the Company’s internal control                over financial reporting. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PART      II      - OTHER INFORMATION**

**Item      1A.      RISK FACTORS**

----

**Item      6.        EXHIBITS**

|   | 3.1    |   | Restated                Certificate of Incorporation of the Company, as amended. (Incorporated                by                reference to Exhibit 3(a) to Furniture Brands International, Inc.’s                Quarterly Report on Form 10-Q for the quarter ended September 30,                2002)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 3.2    |   | By-Laws                of                the Company revised and amended to May 6, 1998. (Incorporated by                reference                to Exhibit 3(a) to Furniture Brands International, Inc.’s Quarterly Report                on Form 10-Q for the quarter ended September 30, 1998)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 10.1   |   | Credit                Agreement, dated August 9, 2007, among the Company, Broyhill Furniture                Industries, Inc., HDM Furniture Industries, Inc., Lane Furniture                Industries, Inc., and Thomasville Furniture Industries, Inc, the                Loan                Parties named therein, the Lenders Parties thereto, JPMorgan Chase                Bank,                N.A., as Administrative Agent, J.P.Morgan Securities Inc., as Sole                Bookrunner and Joint Lead Arranger and Banc of America Securities                LLC, as                Joint Lead Arranger. (Incorporated by reference to Exhibit 10.1 to                the                Company’s Current Report on Form 8-K dated on August 9, 2007 and filed on                August 10, 2007) |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   | 31.1   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Certification                of W. G. Holliman,                Chief Executive Officer of the Company, pursuant to Rule                13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   |   | 31.2   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Certification                of Richard R. Isaak,                Controller and Chief Accounting Officer of the Company, as principal                financial officer, pursuant to Rule 13a-14(a)/15d-14(a), as Adopted                Pursuant to Section 302 of the Sarbanes-Oxley Act of                2002. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   |   | 32.1   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Certification                of W. G. Holliman,                Chief Executive Officer of the Company, pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act                of                2002. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   |   | 32.2   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Certification                of Richard R. Isaak,                Controller and Chief Accounting Officer of the Company, as principal                financial officer, pursuant to 18 U.S.C. Section 1350, as Adopted                Pursuant                to Section 906 of the Sarbanes-Oxley Act of                2002. |

----

|   | Furniture                Brands International, Inc. |
|--------|-----------------------------------------------------|
|   | (Registrant)                                        |
|   |                                                |   |
|   | By:                                                 | /s/                Richard                R. Isaak |
|   |                                                | Richard                R.                Isaak |
|   |                                                | Controller                and Chief Accounting Officer |
|   |                                                | (on                behalf of                registrant and as principal financial officer and as principal accounting                officer) |
|   |                                                |
|   | Date:                November 9, 2007               |

----

|   | 3.1    |   | Restated                Certificate of                Incorporation of the Company, as amended. (Incorporated by reference                to                Exhibit 3(a) to Furniture Brands International, Inc.’s Quarterly Report on                Form 10-Q for the quarter ended September 30,                2002)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 3.2    |   | By-Laws                of the Company revised and                amended to May 6, 1998. (Incorporated by reference to Exhibit 3(a)                to                Furniture Brands International, Inc.’s Quarterly Report on Form 10-Q for                the quarter ended September 30,                1998)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 10.1   |   | Credit                Agreement, dated August 9, 2007, among the Company, Broyhill Furniture                Industries, Inc., HDM Furniture Industries, Inc., Lane Furniture                Industries, Inc., and Thomasville Furniture Industries, Inc, the                Loan                Parties named therein, the Lenders Parties thereto, JPMorgan Chase                Bank,                N.A., as Administrative Agent, J.P.Morgan Securities Inc., as Sole                Bookrunner and Joint Lead Arranger and Banc of America Securities                LLC, as                Joint Lead Arranger. (Incorporated by reference to Exhibit 10.1 to                the                Company’s Current Report on Form 8-K dated on August 9, 2007 and filed on                August 10, 2007) |
|   | 31.1   |   | Certification                of W. G. Holliman, Chief Executive Officer of the Company, pursuant                to                Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 31.2   |   | Certification                of Richard R. Isaak, Controller and Chief Accounting Officer of the                Company, as principal financial officer, pursuant to Rule                13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 32.1   |   | Certification                of W. G. Holliman, Chief Executive Officer of the Company, pursuant                to 18                U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 32.2   |   | Certification                of Richard R. Isaak, Controller and Chief Accounting Officer of the                Company, as principal financial officer, pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act                of                2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |