Kahan family buys Covington
By Carole Sloan -- Furniture Today, April 6, 2008
New York — The Kahan family, a Massachusetts retailer, has bought decorative fabric producer Covington Holdings LLC from Covington CEO Roger Gilmartin and other investors.
Gilmartin, who will remain president and CEO under the new owners, and his partners had purchased the company from the founding Gilmore family in January 2006.
Members of the Kahan family have long been active in the fabric business, operating Osgood Textile Co. in West Springfield, Mass., a retailer of decorative and apparel fabrics. The company was started in 1948 by the late Herb Kahan, father of Robert Kahan, who today heads the retailer.
Robert's brother Mark S. Kahan is chairman of Covington, which will now be known as Covington Fabric & Design LLC. Mayer Kahan, Robert's son and Mark's nephew, is executive vice president.
Gilmartin said he was pleased to have the deal accomplished.
"I think the industry knows that I have been searching for a strategic investor for Covington for some time," he said. "I am excited by the opportunity that this transaction will create for all the constituents in our business and I look forward to becoming a textile guy again after two years of dealing with bankers and lawyers."
Covington was founded in 1940 and grew to be one of the largest U.S. decorative fabrics converters.
"My family has known and been a customer of Covington for over 40 years," said Mark Kahan. "We were very excited when the opportunity to acquire a business with Covington's name and reputation became available."
He added, "We know that the last few years have been difficult for the company, but the underlying fundamentals of the business are strong with loyal customers, vendors and associates, and we believe that properly funded, the company can continue to be a major player in the home furnishings market."
Gilmartin said Covington will remain in the forefront.
"The whole team will be the same, and we will be at furniture market in High Point and we have a new line in the pipeline for introduction at Showtime in June," he said.
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Kahan family acquires Covington
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