Gallahans of Fredericksburg, Va., closing down
August 27, 2008,
James Shrawder, president and majority stakeholder of Gallahans' owner Severegn Furniture Management, said the store didn't meet its goals and will close following a going-out-of-business sale expected to run through October.
In January of 2007, Severegn purchased some of the assets of the upscale Gallahans Home Furnishings and acquired the lease on the store from Stone-Lee. Stone-Lee was led by Phil Kennett, whose other furniture business - Wood Armfield, filed for Chapter 11 bankruptcy protection in 2006 and subsequently closed.
Severegn also owns the high-end Danker Furniture in Gaithersburg, Md., and Sheffield Furniture in greater Philadelphia.
Shrawder had projected the 82,000-square-foot Gallahans showroom could reach $20 million in sales that year in 2007.
"Our business plan called for a 12- to 18-month turnaround effort and although expenses were reduced and sales are up 8% this year over last year, Gallahans just simply fell short of our performance requirements," he said in a release.
He indicated the current economic climate might have been a factor in the decision and said, "we believe that it is financially irresponsible to continue business as usual based on the hope that the economy will turn any time soon."
Shrawder said Severegn will continue to support Gallahans until all orders are delivered and all customer service issues are closed.
The store will be closed until Friday, in preparation for the public GOB.