Sauder to refocus line
By Heath E. Combs -- Furniture Today, July 29, 2007
Archbold, Ohio — Sauder Woodworking will phase out domestic production of laminate and veneer bedroom at its Progressive division, and will exit its Royal Patina high-end case goods line by the end of 2007, the company said last week.
Production will be phased out at Progressive's Claremont, N.C., plant, which employs 320 people. The facility will be converted to a distribution center.
Sauder said it will offer the Royal Patina business unit for sale to allow Progressive to focus on its core business, aimed at promotional and medium price points.
Dennis Ammons, Progressive's president, announced his retirement July 2. Kevin Sauder, president and CEO of Sauder Woodworking, is acting as interim president.
In another move, Dan Kendrick, senior vice president of merchandising at Progressive, will be promoted to executive vice president of merchandising with responsibility for the entire product line.
Originally known for paper laminate bedroom and occasional furniture produced in North Carolina, Progressive evolved into a manufacturer and importer of bedroom furniture in all price segments with its purchase of Royal Patina in 2005.
Progressive's wood case goods division will streamline its operations and concentrate on solid-pine bedroom furniture from its Mexico plant, and low- to medium-priced wood bedroom, dining room and occasional furniture from its Asian partners, the company said.
"We regret that we have to make this move, but we need to change with the new market realities," said Kevin Sauder. "A division the size of Progressive should become a specialist in key market segments and serve those customers well with great styling, service and quality."
Royal Patina is sold through high-end retailers such as Robb & Stucky and Louis Shanks. Sauder said the company has an experienced sales and merchandising staff, solid Asian manufacturing resources and a design team in Cebu, the Philippines.
Progressive's restructuring will also generate new synergies and working relationships with Sauder Global Sourcing, the import division of RTA giant Sauder. The divisions will share the new Sauder Asia headquarters in Southern China, headed by Mitch Helm, formerly of Gruga-Novimex Seating, a recent Sauder acquisition.
The imported furniture lines will pool resources such as supply chain logistics, sourcing and quality control, the company said.
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Sauder to refocus Progressive business
Jul 27, 2007
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