La-Z-Boy merging Hammary into American Drew and Lea
Combination will leverage synergies in supply chain, distribution
Jay McIntosh -- Furniture Today, January 22, 2010
MONROE, Mich. — La-Z-Boy said Thursday it will merge its Hammary Furniture division into sister companies American Drew and Lea.The consolidation will begin in March and will be fully effective by the end of April, officials said.
Hammary specializes in occasional, bedroom and dining room furniture, and the combination will put much of La-Z-Boy's case goods segment under one management team. American Drew focuses mainly on bedroom and dining room and Lea on youth bedroom.
Steve Kincaid, president of La-Z-Boy case goods, said no decision has been made on which executives will head the merged companies. Jack Richardson is president of American Drew and Lea, and John Labarowski is president of Hammary.
He also said the company is evaluating sales territories on a "case by case basis" and will make decisions later on whether the Hammary and Drew/Lea teams should be combined.
"Nothing's broken. We think that by doing this we'll have a stronger company," Kincaid said in an interview. He added that the merger will give the combined operation "as broad a product line as any case goods company out there," and will yield benefits with the combination of merchandising and management talent.
The Hammary name will continue to be used, and the brand will keep its licensed lines with the National Trust for Historic Preservation and designer B. Smith, he said.
Kincaid also said that the combination will allow the company to "leverage the supply chain and distribution networks" used by the companies.
"We think there's an opportunity for us to do a little bit more joint sourcing," he added. The companies may also do some joint merchandising, he said.
For the High Point Market, Hammary will move from its third floor showroom in the International Home Furnishings Center to a ninth floor space adjacent to the American Drew and Lea showrooms, the company said.
Kincaid said the merger is not expected to have much of a financial impact on La-Z-Boy and should result in cost savings going forward.
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La-Z-Boy merging Hammary with American Drew, Lea
Jan 25, 2010
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