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NEWINGTON, Conn. — His success is undeniable, and yet his business is most closely associated with failure.
That business, running liquidations and other sales "events," is built on short-term relationships, and yet his clients, employees and vendors are almost reverentially loyal and laudatory.
These are just a few of the paradoxes surrounding Gene Rosenberg, president of Gene Rosenberg Associates and a dean of the furniture industry's sales event companies.
Rosenberg is celebrating 40 years of conducting sales, particularly going-out-of-business sales, something he acknowledges inspires mixed emotions in the industry.
"I'm sensitive to the fact that this business is looked down on in some quarters as not being a help to the industry," he said.
And yet Rosenberg, who also is majority owner of Top 100 retailer Bob's Discount Furniture in Manchester, Conn., clearly enjoys being a help to others. He helps declining businesses close more gracefully. He helps retiring retailers recover their estates. In the case of major failures, he helps creditors recover some of what they are owed.
Rosenberg and his partner, Paul Cohen, have been running sales since 1961. Essentially, they have a mobile retail operation, capable of setting up shop and generating huge sales volume anywhere at just about any time.
Rosenberg, who had been managing the furniture department for an electronics and appliance store, got into the "road-show" business at the suggestion of a sales representative, the late Judd Zimmer.
"Judd felt there wasn't a lot of reputable people in this business," he recalls. "I felt I could overcome that and make it a business that had integrity."
3,000 sales and counting
Over the past four decades, Rosenberg estimates that he and Cohen, who handles financial issues while Rosenberg manages relationships and merchandising, have run 3,000 sales, with about 2,500 of those being liquidations.
"Even after the store goes out of business, the retailer has to continue to live in that community," he said.
With 500 associates, GRA Planned Sales runs from 15 to 30 sales at any one time. The road crews usually are 10-person teams, four managers and six salespeople, supported by an ad agency at Rosenberg's Connecticut headquarters.
These teams frequently are able to generate a year's worth of sales volume in a 90-day event, Rosenberg said, "especially if it's a store with a good reputation."
Michael Hoffman, president of two Hoffman's Furniture Mart stores in New Hampshire, said the sale GRA conducted for his family's business generated substantial cash without ruining the Hoffman name.
"We did over a year's volume in a 60-day period, which generated a tremendous profit," he said. "GRA maintained our good image within the community, and our business today is stronger."
Going into a sale, GRA buys the dealer's inventory, ensuring the event will be no-risk for the retailer.
Rosenberg said he prefers to get into a liquidation ahead of the lawyers and a creditors' committee.
"What happens in a lot of cases is the dealer gets so jammed up, and his credit gets shut off," he said. "We then become the vehicle through which we can bring in the merchandise to satisfy the customer. Sometimes, when the dealer is in the legal phase of the process, it's too late."
A conversation with Rosenberg leaves the impression that he cares deeply for the furniture industry, and it's clear he believes his company has been the safety net that protected many consumers from losing money in a retail failure.
"We feel we've saved a lot of retail businesses, and we've also saved a lot of customers," he said. "Whether it's a bankruptcy sale or anything else, we've made sure the customers get their furniture."
Rosenberg was particularly conspicuous 10 years ago when his company managed one of the largest furniture liquidations ever, the RB Furniture chain in Southern California.
That sale generated $94 million in 120 days from 29 stores, a run-and-gun, think-on-your-feet episode that his people still talk about as one of the most intense experiences of their professional careers.
More recently, the company managed portions of the liquidations of Levitz and Roberds.
From the RB sale, Rosenberg created the senior management team for Bob's Discount, with Stan Adelstein as chief executive and merchandiser, Joe Goodman as chief financial officer and operations manager, and Bob Kaufman as president and pitchman.
Adelstein and Goodman are both former store owners for whom Rosenberg conducted GOB sales, as is Roy Hester, one of GRA's national sales managers.
"Anybody who has worked with us is still a friend or a member of our extended family," said Hester.
"Gene is a true leader," said Kaufman, who adds that Rosenberg is the visionary behind the stunning growth of Bob's Discount Furniture. "He gives each of us the power we need to do our jobs, but he's always willing to share his experience and wisdom."
Combined buying power
This year, Bob's is projecting sales of about $130 million, and GRA will do about $150 million through its sales.
"Combined, we have some buying power," Rosenberg said, adding that his retail business has proven to be a boon to his sale business because of the lessons learned. "The combination is beneficial to both companies."
Looking ahead, Rosenberg said he's optimistic about both sides of his business, although he's concerned for the industry as a whole.
"What scares me is the big chains having so many problems," he said. "The regional chains seem to be doing well, but there's no question that there are more and more retailers who want to get out of the business."
| Rosenberg |
| GRA's management staff includes Ed Borowsky, left; Roy Hester, Tom Cassidy, Scott Dedominicis, Judy Cusano, Jim Demory, Gene Rosenberg, Paul Cohen, David Cosenza, Ross Cooper and David Cosenza Jr. |
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