American Century Home sets ambitious growth plan
Fabric source acquires Jeffco, plans to open design showrooms
By Carole Sloan -- Furniture Today, April 23, 2007
Salisbury, N.C. — The acquisition of high-end furniture maker Jeffco by American Century Home Fabrics will result in a new corporate entity, The Chelsea Frank Group, under which Jeffco and other business units will operate.
The new group plans a major thrust into the interior design and luxury retail markets, said Jason Jiang, CEO of the group, which is run by him and his wife Cathy.
He called Jeffco "a world-renowned name" with unique case goods and upholstery designs and distribution in the United Kingdom, Western Europe, Russia and China, in addition to the United States. He plans to expand that distribution, including into Australia.
"I want the world to accept American style through the Jeffco and chelsea frank names," Jason Jiang said. "By merging them at the high end, we will make it a one-stop shopping experience."
Chelsea frank is the group's upscale home textiles line, launched last October, that targets interior designers. Its upholstery fabrics will be coordinated with Jeffco's offerings.
Jiang said Jeffco, which shut down earlier this year, offers product on the level of companies like E.J. Victor and Henkel-Harris, but needed financing to attract more dealers and interior designers. In the United States, he is looking to a nationwide sales agency to boost volume.
Among Jeffco's major assets, Jiang said, is its state-of-the-art finishing operation in Hickory, N.C., part of its 150,000-square-foot facility. Its dry finish process is difficult to imitate, he said.
With the acquisition, Jeff Gaynor will remain Jeffco chairman for two years, then phase out of the business, Jiang said. Paula Gaynor, Jeff's wife, will stay with the company for a year in design and merchandising "and travel in search of unique designs," Jiang said. "Almost all of their designs in the past 25 years were inspired by Spain."
Jeffco was founded by the Gaynors in 1969.
Mike Sapp, formerly president of high-end upholstery and case goods producer Swaim, has been named vice president of merchandising and design for Jeffco. Jiang is looking to fill the president's slot.
Chelsea frank's luxury top-of-bed program was launched last year, and at last month's High Point Market debuted a showroom in the Suites at Market Square.
In an interview during the market, Jiang said the chelsea frank name combined the names of his 11-year-old daughter and 9-year-old son, both of whom are expected to join the family business.
On May 15, chelsea frank will launch a collection of decorative fabrics for the interior design trade. The new collection will have about 500 SKUs and "represents a major upgrading — and they're not just upholstery goods but multi-purpose as well," Jiang said.
The chelsea frank business managers, including the Jeffco fabrics unit, are David Lappert, executive vice president, Peter Gallagher, senior vice president for sales and marketing, and a dedicated group of designers, he said.
To support chelsea frank growth, Jiang plans to open interior designer showrooms in San Francisco, New York and Florida.
American Century Home Fabrics continues as the corporation's decorative fabrics arm for already-established commercial customers for both fabrics and cut-and-sew product made in China, Jiang said. Tom Finneran is president of this division. American Century Home bedding , headed by Jeff Ganz, focuses on the medium to higher-end retail mainstream and has a showroom at 7 West in New York.
The corporation will be careful to distinguish between the American Century Ho me Fabrics line and the chelsea frank line, he said.
In May, the company expects to open a 1.5 million-square-foot factory in Hangzhou, China, that will produce both chelsea frank top-of-bed and Jeffco furniture. "We will bring the Jeffco technical people there to show the people the manufacturing techniques," Jiang said.
The corporation expects to hit $200 million in three years, with $50 million of that from the jobber business, he said. The group currently has annual revenues of $120 million.
