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Klaussner to launch second retail chain

Company also squelches rumors it will be sold

Gary Evans -- Furniture Today, July 30, 2007

LAS VEGAS— Klaussner Home Furnishings says it plans a second retail chain, and squelched months of rumors that it was being sold to a Chinese company or to other domestic manufacturers.

The new retail Klausnerhome chain will start with four stores in the Southeast, converted from the company’s Sofa Express and More chain, with a goal of reaching 100 by the end of 2009, officials said.

Klaussner CEO J.B. Davis said Monday that the 38 existing Sofa Express and More stores will stay open and will not conflict with the new stores, even though both formats may operate in the same markets. The Klaussnerhome showrooms will be about 25,000 square feet, about the same as the Sofa Express and More units.

What’s different will be merchandising and advertising, with Klaussnerhome concentrating on the Klaussner brand. While Sofa Express and More carries a small amount of non-Klaussner product, Klaussnerhome will be 100% Klaussner product, Davis said.

Jeff Davis, senior vice president for business development, said Klaussner has explored several retail formats and partnerships in recent years. “We now realize there is a need in the marketplace for a fresh, innovative, ‘experience’-based model for licensed retail development,” he said.

“While Sofa Express and More has recently served as Klaussner’s primary venue for showcasing its complete line of home furnishings, the Sofa Express and More model relies on the strength of the store’s name to sell product,” added Jeff Davis. “The Klaussnerhome stores will allow Klaussner to showcase our product and brand front and center.”

Television personality and design diva Genevieve Gorder will be the Klaussnerhome spokesperson.

J.B. Davis added that while the company has been outsourcing products to manufacturers abroad, and will continue to do so, it is working on establishing Klaussner-owned and operated manufacturing and consolidation facilities in Asia. “We’ll either buy into an existing operation or start our own,” he said.

He predicted more changes to come, but emphasized that no sale of the company is anticipated.

“Our owner is committee to the success of our business, and we’re all very excited about the future of Klaussner Home Furnishings,” he said. “Our goal is not only to try to grow and maintain jobs but to create new jobs throughout our company at all our locations — in California, Iowa and North Carolina. We believe that the steps we’ve taken recently and the ones we plan to take in the months ahead will enable us to succeed at doing just that.”

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