Gennet leaves for Lazar post; SFM names Carini
By Clint Engel -- Furniture Today, October 6, 2003
San Francisco — Michael Gennet has resigned as president of the San Francisco Mart to become president and chief operating officer of contemporary upholstery producer Lazar Inds.
Gennet, who was SFM president since 1993, is being replaced at SFM's leadership helm by Roseann Carini, former senior vice president of marketing and leasing, now general manager.
At Lazar, Gennet replaced former President Stacy Merillo, who left to join home furnishings importer Astoria Imports.
News of Gennet's departure from SFM came two days after the World Market Center in Las Vegas began excavation work on a home furnishings market building expected to challenge SFM for dominance in the West. Gennet, 62, said his resignation was "absolutely not," related to the Las Vegas challenge.
"This was a great opportunity for me," he said. "It's a career move that I think will give me the opportunity to get back to some of my manufacturing and marketing roots." His industry experience includes executive positions at both Serta of New York and Sealy in Orlando, Fla., and Chicago.
Gennet said he will have an equity stake in Lazar — another incentive — but declined to disclose the amount.
Lazar is part of Rivers Associates, a Chattanooga, Tenn.-based investment company that acquired a 60% stake in Lazar in 1999, according to River's Web site.
"I will continue to be a booster of the San Francisco Mart, as a tenant and an active member of the home furnishing industry," Gennet said. He said most of the SFM management team knew of his plans a month ago, and that it has been an easy transition.
"I think the Mart is in great hands," he said.
Barry Lazar, founder and chief executive officer of Los Angeles-based Lazar, said he is pleased to have an executive of Gennet's caliber. He said that with Gennet, Lazar is expanding the role of president to be more visible in the marketplace.
"His skill set and reputation in our industry mesh perfectly with Lazar's stature as one of the country's leading contemporary upholstery manufacturers," Lazar said.
The company makes midpriced to upper-middle upholstery at factories in Los Angeles and Siler City, N.C. Its annual sales are nearly $30 million, including sales from its contract division.
At the San Francisco Mart, Carini, a 13-veteran heading the leasing and marking department, is assuming most of Gennet's responsibilities but will share some duties with Linda Corso, senior vice president of operations, and Ray Babcock, chief financial officer since 1994.
Eric Grossberg, managing director of ADCO Group, which has owned SFM since 1968, said Carini was named general manager rather than president because, "We feel the general manager title is more appropriate due to Roseann's hands-on involvement in the day-to-day operations."
SFM said Gennet was instrumental in strengthening the mart's ties to retailers through his outreach efforts and visibility at industry events, and said Carini intends to build upon these practices.
"Gennet helped attract many major manufacturers to the mart, while coordinating positive administrative changes and new marketing programs," SFM said.
Recently, however, the San Francisco building has been challenged by the planned Las Vegas complex, which has signed more than 220 tenants, including several majors and some who say they will leave SFM when the new market opens in 2005.
Indeed, Lazar, which shows in High Point and San Francisco, is "committed" to showing in Las Vegas, said Barry Lazar, although he said the company hasn't signed a lease yet and probably would leave that decision to Gennet.
"We'll be giving it every consideration," Gennet said. "If it's the right thing to do, we'll sign a lease at some point, but it's certainly not imminent."
Asked if Lazar intends to remain at SFM, Gennet hedged, saying the company's lease expires in mid-2004, "and when the lease is up for renewal, we'll consider our future in San Francisco."
Lazar, who is 69, said Gennet's hiring is part of a long-term succession plan.
"It's not something that's necessarily immediate, but it's certainly the first step in a plan that takes me from the point to the bench," said Lazar.
The manufacturer is celebrating its 20th anniversary this year by introducing its broadestever offering of sofas and chairs at the upcoming High Point market, including new designs in contemporary, mid-century and casual styles.
The company's proprietary labels include Chair Design, Acme Brand Couch Co. and DesignXpress, each offering extensive special-order programs.
