Kindel owners oust Fogartys
By Heath E. Combs -- Furniture Today, January 28, 2007
Grands Rapids, Mich. — The owners of high-end 18th century reproductions manufacturer Kindel have removed company veterans President Paula Fogarty and her father, Chairman Robert Fogarty.
The unexpected ouster took place Jan. 19 when majority owner John Fisher, 91, of Indiana flew into Grand Rapids with other family members to make the changes.
Jonathan L. Smith, a principal in Gull Consulting in Grand Rapids, was named interim president and CEO to oversee a program to reinvigorate the Kindel brand worldwide, according to the company. Smith has been consulting with Kindel for about a year.
He said the Fisher family felt the company could perform at a higher level, adding that it will aim to double revenues in four years. He did not disclose 2006 revenue.
"I think that the opportunity in front of Kindel is one of expanding in different distribution channels in the furniture industry and expanding product offering," Smith said.
He said he had begun meeting with retailers to reinforce commitments to the Kindel line.
Smith formerly was a bank executive in Michigan and was a senior officer in Security Capital Group, where he oversaw the investment of nearly $1 billion in shopping centers, urban stores and parking facilities around the United States.
Paul Hebert will return to Kindel as vice president and national sales manager. Others who will assist Smith include Denny Patterson, vice president of finance and operations; Amy Wolbert, manager of marketing; Diane Belanger, director of human resources; and Peter Jacob, designer.
The Fogartys, who could not be reached for comment, have a long history with the company.
A resident of Georgetown, S.C. for the past 13 years, Robert Fogarty became chairman of Kindel when he bought into the company in 1978. His daughter Paula joined the company in 1987 as manager of public relations and reproductions and was named president in 1999.
Both are pursuing other interests, according to a Kindel press release, but will assist with the management transition. Dean Fogarty, vice president of operations planning, also has left the company.
John Fisher and his wife, Janice, have been majority owners of Kindel since 1964. The couple purchased additional stock in the company in late December, Smith said. At a recent board meeting, the couple's son, James A. Fisher, was elected director and secretary of the board.
Smith said a local bank has provided a capital facility to help it pursue new markets, which will go toward investments relating to inventory. Smith said one of the company's goals is to speed up delivery times.
James Fisher said the split between his family and the Fogartys was due to philosophical differences, but did not give details.
He added that the manufacturer took a hit in recent months with the bankruptcy filing by Washington-area retailer Mastercraft Interiors. Kindel was Mastercraft's sixth largest industry creditor, owed $259,965.
The release said Kindel is the last remaining case goods manufacturer in Grand Rapids and that the company has dedicated itself to producing U.S.-made high-end product. Kindel employs about 130 people at its 170,000-square-foot facility.
Max Shangle, a professor and chairman of the furniture design program at the Kendall College of Art and Design in Grand Rapids, said the Fogartys partnered with the school for programs at Kindel, a relationship he hopes continues.
"High-end product has become a commodity. The industry has to get back to buying furniture for comfort, pleasure and in some cases, prestige," said Shangle. "If we lose our ability in this country to produce high end and become a commodity in the marketplace I think this whole industry suffers."
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