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Standing by Martha

Bernhardt's loyalty pays off

By Powell Slaughter -- Furniture Today, March 13, 2005

Bernhardt Furniture's decision to stand by Martha Stewart through her legal problems is looking pretty smart these days.

Stewart is out of prison, her company's stock price is soaring, she has a new television show in the works, and stories of her activities and relations with fellow inmates have shown the public a softer side to the home and entertainment gu-ru's sometimes prickly public image.

While some in the industry questioned Bernhardt's wisdom in keeping and even expanding the Martha Stewart Signature Furniture brand under a cloud of negative publicity, the high-end supplier is happy with the course of events.

Company Chairman and CEO Alex Bernhardt and Stewart appear to genuinely like each other, but he said that sticking with the Martha Stewart line was a pragmatic decision.

"Throughout all her personal problems, our sales continued to grow. We felt consumers separated the interesting events in the life of a celebrity from their buying decisions," Bernhardt said last week. "The furniture had to stand on its own.

"We never faltered, we stayed the course, and we're glad we did. There was no incentive for us to even consider walking away."

He and Stewart kept up a personal correspondence while she was in federal prison in Alderson, W.Va., and he went to visit her there.

"We didn't talk business when we visited," Bernhardt said. "I got an e-mail from her last night discussing business though, so she's back."

The company has a fourth full collection of 85 pieces of case goods, occasional and upholstery — as yet unnamed — set to join the Martha Stewart Signature line later this year.

"It's been in development for about a year," Bernhardt said. "We're previewing in High Point in June to select retailers. ... It will ship to retailers sometime toward the end of this calendar year."

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