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Hendricks to close Norris Furniture stores

Leaves troubled Florida retail market

Clint Engel -- Furniture Today, February 19, 2009

CONOVER, N.C. — Hendricks Furniture Group has announced it is closing its money-losing Norris Furniture & Interiors business and exiting the Florida retail market.

In a release, the retailer said the move to close the two stores in Naples and Fort Myers, Fla., is part of a strategy to realign its "retail holdings in light of current challenges in the marketplace." It said the Norris stores accounted for the bulk of its losses.

Norris will begin liquidating in-stock merchandise immediately. The company said it will fulfill customer orders and will meet all vendor obligations.

"The company is working closely with its lending and manufacturing partners to ensure the exit from these challenging markets is completed in an orderly, equitable fashion," the Conover, N.C.-based Hendricks said. It did not say whether a liquidator was hired or how long the liquidation is expected to run, and management could not be reached immediately.

"Norris has accounted for 80% of our losses and just 15% of our revenues," said owner Larry Hendricks in the release. "We cannot continue in Florida with the state's economy still so unstable, without unnecessarily jeopardizing our other unaffiliated operations."

Hendricks Furniture Group, which does business as Boyles Distinctive Furniture in North Carolina and South Carolina, added that "more operational efficiencies and retail adjustments would be taking place" in its remaining stores, including "more customer-focused merchandising and more strategic vendor alliances." According to its Web site, the company has 11 Boyles locations in the Carolinas.

It said the moves should "continue contributing to Boyles' stability" and serve as a foundation for growth when the economy recovers.

"We've made difficult but very necessary decisions to realign our operations with the current state of the economy," Larry Hendricks said. "We regret the impact these changes will have on our dedicated employees, but I am confident we will now be able to move forward as a leaner, more customer-focused company."

In October, Hendricks realigned its top management, naming Chad Hendricks president to replace Rick Grant. Grant became the majority owner, president and CEO of Classic Moving & Storage, which once was under the Hendricks Furniture Group umbrella but now is operated separately.

The month before, Hendricks sold its remaining 10 Thomasville Home Furnishings stores to Thomasville Furniture Inds., saying it wanted to focus on Norris and Boyles.

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Hendricks Group closing two Florida stores

Feb 23, 2009

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