UPDATE: NHFA's 2008 small Retailer of Year closing two stores
Great Lakes blames lending crisis, economy
Clint Engel -- Furniture Today, February 23, 2009
HOLLAND, Mich. — Three-store Great Lakes Home Furnishings - the National Home Furnishings Assn.' Retailer of the Year honoree last year in the under $10 million in annual sales category - is closing its showrooms here and in St. Joseph, Mich.
In a press release, the company cited "the unsettled situation in the banking and lending industry and unprecedented economic downturn in Michigan."
CEO Ken Machiela started the business in Holland more than 45 years ago and eventually expanded to three stores, including its 90,000-square-foot Great Lakes Home Furnishings Center in Holland. The St. Joseph store has been performing above expectations but will close as well, Great Lakes said.
President Randy Wassink said that a third store, UBU Home Furnishings in Grandville, Mich., "is currently not affected."
The going out of business sale for the two Great Lakes stores will be conducted by SPCI Cos. of Denver and will begin Feb. 27.
In a statement released by SPCI, Great Lakes CEO Ken Machiela said its bank wanted "immediate repayment of our building mortgage, in effect eliminating our cash flow," and said negotiations to resolve the situation failed.
"The hard fact is the bank seems unwilling to work with a small business so closely related to the housing market," he said.
Machiela started the business in Holland more than 45 years ago and eventually expanded to three stores.
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