Capel's Birnbach plays on strengths
By Lissa Wyman -- Furniture Today, October 21, 2005
At the Market — Eric Birnbach has been president of major rug resource Capel Inc. for only two weeks, so he understandably is reluctant to make sweeping statements about the company's future.
However, his background in furniture, upholstery and home textiles gives him a springboard to dive right into the 88-year-old company's multi-faceted rug business.
"I can't pretend to be a rug maven," he said. "But I do have a long history and a commitment to home furnishings. I hope to use that expertise as Capel's business goes forward."
Capel, based in Troy, N.C., is best known as a manufacturer of braided rugs. The company also is a major importer of both handmade and machine-made rugs.
In recent years, Capel also has made an aggressive move into retailing.
For the near term, Birnbach said the company's challenge is to continue on an upward growth path.
"Our goal is to create and sustain a competitive advantage while providing exemplary service and maintaining a financially stable platform," he said.
Capel's principal channels of distribution are furniture stores, catalogs and the freestanding Capel Rugs stores.
Birnbach said the company has a growing commitment to retailing, with the long-range goal of entering individual markets and dominating the rug business with large stores dedicated solely to Capel products.
Currently, there are some eight Capel-owned stores and 11 Capel-dedicated stores. Partners in the dedicated stores have exclusive rights to Capel products in their areas. The most recent dealer-owned store is a 12,000-square-foot unit in Lexington, Ky.
Will Capel branch into other product categories to help fill those stores? It's not part of the company's current plan, said Birnbach.
"I have no urge to dilute our efforts," he said. "We have a commitment to the rug industry. We don't want to dilute that effort."
Birnbach's appointment marks the first time that a non-Capel family member has held the post of president in the company. Former executive officers Jesse, Leon and Arron Capel are retiring from the day-to-day operations of the business while remaining on the board of directors.
"Although I've been on the job for only two weeks, Jesse, Leon and Arron have left the building," said Birnbach.
"They have opened offices nearby and are available in an advisory capacity."
Birnbach joined Capel through an independent recruiter. He most recently was head of Beacon Looms, a textiles company specializing in window and top-of-the-bed. Earlier, he was president of Spectrum Fabrics and held several sales, buying and merchandising posts at Rowe Furniture.
He won the job over 500 applicants in a five-month search, said Leon Capel.
"Birnbach is well qualified in the areas of textiles, furniture and retailing, which fills three important gaps," Capel said. "The fact that he does not have experience in rugs is not as important as the other qualities he brings to the job. Most importantly, he is a leader and has a track record as a mentor and teacher."
A party Thursday evening in Capel's Market Square showroom honored retiring brothers Jesse, Leon and Arron Capel.
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