NexGen closes Waverly deal
From the editors of Home Accents Today -- Furniture Today, May 21, 2007
Business moves
NexCen Brands completed its acquisition of the Waverly brand from F. Schumacher & Co., acquiring all of the intellectual property and license contracts related to the Waverly, Gramercy and Village brand products and services. NexCen paid $36.8 million in cash and issued a 10-year warrant to purchase 50,000 shares of common stock in connection with the acquisition. NexCen estimates that the Waverly brand will generate approximately $9 million of royalty revenue and $.07 per share of incremental earnings in the first 12 months following the acquisition.
Pacific Rim Import Corp.'s remaining assets were auctioned by liquidators Great American Group on May 10. More than $19 million in home furnishings and accessories, and 25,000 feet of corporate office furniture and equipment, were listed in the auction catalog. Bidding took place onsite at the company's Seattle headquarters and via live Webcast.
Aldik's senior management joined forces with Encore Consumer Capital to buy the floral decor manufacturer and its Hong Kong subsidiary from former parent company Decorative Concepts Inc. The purchase includes Aldik's core domestic and international business along with its Hong Kong subsidiary, which was renamed Sourcedecor Ltd.
Retail briefs
Abbyson Corp. will celebrate the launch of its first retail venture, The Power of Home, with a grand opening event at the store's Chatsworth, Calif., location in June. The store will carry a variety of mid- to upper-priced products, including Abbyson rug and furniture items, accessories from Imax and The Phillips Collection, and exclusives from Europe, in an environment staffed by an experienced design team and wired with touch-screen technology. Yavar Rafieha, vice president of marketing and sales, described the concept as the future of retail home stores. "It is not new to see companies like ours venture into retail, but we really wanted to bring something different and special to the industry. The Power of Home is exactly that."
New York's ABC Carpet & Home launched a limited edition Gee's Bend Rug Collection featuring an assortment of Turkish patchwork- style flat weaves inspired by more than 30 original quilts from the Gee's Bend, Ala., rural community.
Jackson, Tenn-based Kirkland's Inc. announced plans to close 40 of its mall stores and replace them with 40 free-standing stores during fiscal 2007, part of an initiative that, since 2005, has resulted in the retailer's opening of 108 new off-mall stores and closing more than 90 other locations. The retailer currently has close to 350 stores in 37 states and is considering new locations in high-growth residential markets primarily in the Southeast and Southwest.
Tuesday Morning reported its first-quarter net income fell 84% to $1.1 million from $6.5 million a year ago due to increased expenses and weak sales growth. Sales for the quarter totaled $189.2 million, compared to $187.8 million in the same quarter last year.
Overseas, Laura Ashley Holdings Plc. reported a near doubling of annual profits, thanks partly to an increase in home furnishings sales. Net income rose to $15.7 million for the year ended Jan. 27. CEO Lillian Tan is credited with cutting costs, closing unprofitable stores and opening others in more competitive areas. Laura Ashley opened 20 stores in the United Kingdom and Ireland and plans to open more this year.
News from around the marketplace
Paragon will launch a licensed line by product and showroom designer Mark Abrams this summer consisting of about 50 SKUs grouped into two collections — Irving Park and Adventure Series. Irving Park is inspired by the classic lines, colors and textures found in America's grand estates and homes, offering a formal, traditional style. Adventure Series draws from a variety of world destinations and translates them into wall decor items. "The collection has definitely been designed with a designer's point of view, but it also works for retail, allowing furniture stores to have on-trend product to fill their walls," said Abrams. "The value of the collection is unbelievable, from a retail perspective."
Los Angeles-based outdoor furniture designer Richard Frinier captured media attention with his Japanese-inspired Shoji Lantern for Currey & Co., recently included in Metropolitan Home magazine's Design 100 listing for 2007. The Shoji Table Lantern features Sunbrella performance fabric and a discrete dimmer.
CBK has unveiled Diamond Rewards, a new loyalty program that will reward customers with ideas and solutions to help increase their margins. Based on the total dollar amount purchased and shipped from CBK in one year, a customer can earn rewards such as extended dating terms, promotional ideas on DVD, early notification of overstock merchandise and future order discounts.
Clay, Metal & Stone has announced a new partnership opportunity for area charities in which it will make its Fort Lauderdale trade showroom and all floor merchandise available for use at fundraising events, and donate 25% of all final sales to the charity hosting the event.
| Acknowledgements | ||
| Compiled from Home Accents Today staff reports, April–May 2007, and edited by Susan Dickenson. | ||
