Alan White closing
Upholstery maker will liquidate
By Gary Evans -- Furniture Today, January 21, 2007
Memphis, Tenn. — Alan White, a longtime supplier of midpriced upholstery to the industry, said last week it is going out of business.
The 52-year-old company, which has its headquarters here and operations in Shannon, Miss., and Stamps, Ark., said it has begun exiting the business and "will liquidate assets in a controlled manner to meet as many obligations as possible."
The company said it does not plan to file for bankruptcy.
Company officials were not available for comment, but issued a news release saying the closing was due "to chronic and overwhelming industry pressures." The release gave no details, but sources said that flat business, the closing of Atlanta-based retailer Rhodes, and loss of sales due to the consolidation of the Federated and May department stores contributed to the shutdown.
According to the release, "The management team and ownership have worked hard to avoid this last option and are deeply grateful for the loyalty shown by our employees, suppliers and lenders. They have continued to take care of the needs of our customers while knowing about the struggles facing the company. We are saddened about any hardship they face yet we must address the reality of the situation facing the company.
"Exceptional industry pressures have proven too great to sustain operations, specifically, intense price competition; elevated material costs associated with Hurricanes Katrina and Rita; and a shrinking and consolidating customer base," the company said.
Alan White said its revenues have ranged from $50 million to $100 million annually for the past several years.
In 2002, the family-owned manufacturer sold a stake in its operations to St. Louis-based private equity company Thompson Street Capital Partners. The amount of the stake was not divulged.
The closing will affect about 300 employees in Shannon, about 15 in Stamps and five here.
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