Collezione on grow
By Clint Engel -- Furniture Today, April 24, 2005
High Point — Importer Collezione Europa plans to buy a domestic upholstery factory and open a Southern California warehouse and distribution center in preparation for ultimately offering a dedicated store program to dealers.
Leonard Frankel, president and CEO of the fast-growing case goods, upholstery and accessories resource based in Englewood, N.J., said at market here he is talking to several U.S. upholstery makers but declined to identify them.
"I'd like to do it yesterday, which is how I like to do everything, but I want the right partner and I want the right deal," Frankel said, adding that he expects to have his own U.S. factory operating within two years.
The West Coast distribution center also is probably 18 months to two years away and would start at about 250,000 square feet, said Paul Frankel, vice president and chief operating officer. It could open sooner if Collezione finds a suitable existing facility, but the company is leaning toward building a facility, as it did in Claremont, N.C., in 1999.
That high-cubed facility initially was 265,000 square feet and was expanded to 430,000 square feet in late 2003.
A hot line — with a reputation for knocking off upscale looks for the broader middle market — Collezione Europa says it is doing about $150 million in annual volume and has been growing about 25% a year. The company added a full line of Chinese-made upholstery two years ago.
A domestic factory would enable Collezione to expand into special order on a variety of covers. The factory also could handle final assembly of certain goods.
The West Coast distribution center would take pressure off the North Carolina facility, already at capacity and using an additional 200,000 square feet of temporary space for overflow. It also would enable Collezione to more efficiently serve dealers in the West, the company says.
Paul Frankel said the North Carolina warehouse was a $20 million investment, and expects the California project would cost at least that much.
Leonard Frankel said the dedicated stores could open within two or three years. The program could start with in-store galleries. In both cases, Collezione doesn't expect to use its existing name as the brand, but probably would adopt something catchier and in combination with the names of its dealer partners, he said.
The dedicated stores would be strictly dealer-owned.
"We already have interest from a lot of our customers to open a store or gallery without the support I think they need," Leonard Frankel said, without naming names.
He said he wasn't concerned about creating distribution conflicts, and believes many of Collezione's dealers will want to be part of the program.
-
Collezione Europa eyes dedicated stores
May 1, 2005 -
Collezione Europa eyes dedicated stores
Apr 18, 2005
VIEW ALL GALLERIES
