Lacquer Craft expands
Buys N.C. uph. maker Craftmaster
By Gary Evans -- Furniture Today, May 22, 2006
High Point — The acquisition last week of North Carolina upholstery maker Craftmaster Furniture by major China-based producer Lacquer Craft should help ease fears that Asian factories will take over the upholstery category, according to the new president of Craftmaster.
"It's such a great thing for the industry in the United States," said Roy Calcagne, who heads what is now a wholly owned subsidiary of Lacquer Craft, which also owns importers Universal and Legacy Classic.
"There's been a lot of speculation that upholstery is going offshore like case goods," he said. "(But in this case), an Asian company, probably the premier Asian company, sees the need to own a U.S. upholstery company.
"We think there's a definite need for import upholstery at the upper end," Calcagne continued. "But when you get to the more promotional price points, freight is such a high factor that it's difficult (for imports) to compete in the $599, $699, $799 price points."
Calcagne added that the special-order side of the business is difficult to address with import upholstery. "This acquisition solves the problem. Now we've got the whole special-order capability."
Calcagne retains his post as senior vice president of upholstery for Universal. Terms of the purchase weren't announced.
Officials of the two companies, including Steve Lackey, Craftmaster CEO and a former owner along with Keith Stokes and Sharon Lackey, said the two companies will operate as separate entities, each with its own sales force and showrooms. Craftmaster has a factory in Taylorsville, N.C., which employs 425 people.
"Craftmaster's product line is different from Universal's," said Calcagne. "They hit right under Universal Loft and Estate (two Universal product lines). They're in the good price range, and (Universal) is in the better and best."
While the two companies will remain separate, Calcagne said Universal may incorporate Craftmaster product into its Universal Home gallery program. And the acquisition could give Universal the special-order capability it doesn't now have.
"There are a lot of unanswered questions at this point," he said. "But we have a strong idea of how this thing is going to be set up, and we know it's going to work."
Universal has been looking for a domestic upholstery company for at least six months, and executives said Craftmaster was a perfect fit. The 34-year-old company is financially strong with growing sales, and has a strong management team and sales force.
Meanwhile, Lackey, Craftmaster's CEO since 2002, had been looking to take advantage of some aspects of offshore production.
"Craftmaster is in a rare and enviable position today," Lackey said. "We're joining with a group of companies through which we have the opportunity to grow, diversify and become even more competitive, while maintaining all the traditions and values that make us the company we are. This is a benchmark day for everyone at Craftmaster."
Universal President Randy Chrisley said, "Craftmaster is a very sound company that is well regarded throughout the industry, with a reputation for quality and service."
He added that Craftmaster boasts an extensive and loyal base of traditional furniture retailers in the East and Midwest, including many smaller independents. Universal caters to Top 100 and larger accounts.
Calcagne and Lackey report to Chrisley. Lackey remains CEO of Craftmaster.
"We have the ability to enhance the Craftmaster line by taking advantage of the benefits that China offers to domestic upholstery manufacturing," said Chrisley.
"To add cut-and-sew fabrics, leather upholstery and exposed-wood components produced in China gives Craftmaster a distinct advantage in the marketplace."
Craftmaster has not offered leather upholstery.
Calcagne has been with Universal since August 2003 and developed the company's upholstery program. He previously was vice president of merchandising for Broyhill and a buyer for Macy's New York. In between, he was vice president of sales for Joan Fabrics and called on Lackey as a fabric customer.
