United left U.S. before acquisition
By Michael J. Knell -- Furniture Today, March 28, 2004
COQUITLAM, British Columbia — COQUITLAM, British Columbia — United Furniture Warehouse quietly exited the U.S. market in the months leading up to the promotional chain's acquisition by The Brick Warehouse Corp.
In the wake of the newly announced deal, UFW's former president, John Volken, plans a new chain of stores that will generate profits for a charitable foundation.
At one time, UFW was the only Canadian furniture retailer with a major U.S. presence, with about 58 stores in the Pacific Northwest and Utah. It closed 26 stores in the first quarter of 2003, all victims of sagging economic conditions.
Volken said that after the U.S. invasion of Iraq, banks — for security reasons — made it much more difficult to send money across the border, making it tougher to operate the business.
"When the war started, the banks got nervous. It made things very difficult," he said. "We had to liquidate to raise about $10 million to clear off some debt."
UFW has also liquidated Now Furniture & Appliances, a small chain of furniture, bedding and appliance stores it ran in British Columbia and Alberta. UFW acquired Now, then called Wosk's, in 1998.
With the sale to The Brick, Volken has retired from the day-to-day retail grind to focus his attention on Welcome Home, a residential program that helps displaced and distressed young people. UFW traditionally donated 2% of sales to Welcome Home.
Now, Volken has created the Volken Foundation, which will open and operate Welcome Home Liquidation Centres, an 11-unit chain with outlets in Washington State, British Columbia and Alberta.
Staffed by young people, who are living in a Welcome Home facility, these stores will sell furniture and bedding as well as other consumer goods. They'll sell manufacturers' overruns, discontinued items and other clearance deals. The stores' primary purpose will be to teach job skills to young people.
The foundation now also owns 30 buildings that house existing UFW stores now owned The Brick. "The income will be used to support the charity," Volken said.
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Brick buys 82 United stores in Canada
Mar 28, 2004 -
United paring down
Feb 2, 2003
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