Norwalk dealers form group
By Gary Evans -- Furniture Today, September 15, 2008
HIGH POINT — About two dozen Norwalk franchisees have formed a loose-knit cooperative to serve as a buying, marketing and branding mechanism as owners seek a new identity for their stores with supplier Norwalk Furniture closed at least for now.
In its infancy, the group is communicating by phone and e-mail and plans a meeting at the end of the month. The agenda will include presentations from manufacturers anxious to supply goods or to make private label upholstery.
In addition, members see themselves as a buying group, and will also tackle details like branding, signage and other aspects of the business once handled by Norwalk corporate. Already, the group is sharing information on potential vendors.
Most franchises have shifted their assortments to other manufacturers, and are selling off Norwalk merchandise. Some are hopeful that Norwalk will still ship pending orders, and the Ohio-based company — which stopped manufacturing early this month — has promised delivery of goods that have already been produced.
Meanwhile, Norwalk Chairman Jim Gerken said last week that the company was hoping to find somebody to buy or lease its factories and equipment and return Norwalk to production. In addition to factories in Ohio, Tennessee and Mississippi, the company also has closed its five corporately owned stores.
Several of the 50-plus franchisees still in business said they are ready to put the past behind them.
“I've kind of learned by lesson about putting all my eggs in one basket,” said Michelle Spencer, owner of the Norwalk store in Pensacola, Fla. A Norwalk dealer for 17 years and a franchisee for 12, Spencer is getting over the shock of losing a company she describes as “phenomenal” and is moving ahead with a spirit of optimism.
“We believe we are going to benefit from this,” she said. “It's all in my attitude. I can either go down with the ship or I can swim.”
Spencer began adding non-Norwalk upholstery to her store after the company first unexpectedly shut down on July 31. Now her sources include Drexel Heritage, Michael Thomas, Miles Talbott and Sherrill.
“It's been exhausting mentally and physically for everyone on my staff but now we are going to have to grow from it,” said Spencer. “My designers are extremely excited about it. They feel like the handcuffs have been taken off and they can move forward with their design abilities.”
Spencer also has downsized her design staff by two and is thankful that Norwalk's closing came at a time when business is typically slow. “We're doing window treatment jobs and accessory jobs and minimal special order because I only have so much product on my floor. But we're surviving with that.”
Richard Mizerny, owner of a Norwalk store in State College, Pa., sensed something was wrong at Norwalk because “of significant fabric delays.” The company gave various explanations “but Norwalk really prides itself on 35-day delivery. In a lot of respects, I'm very surprised but the signs were there.”
Mizerny said new vendors have been “very willing” to speed merchandise to his floors “so that's been great. There are some real good companies out there.”
Mizerny, who also will be a member of the new cooperative, now offers Miles Talbott, Michael Thomas, Leathercraft, Bradenton Young and C.R. Laine upholstery and is looking for an entry-level sofa line to retail for about $1,000.
Though not a franchise store, Phelan's Interiors in Cedar Rapids, Iowa, said Norwalk was “a major player for us,” taking up 25% of the store's upholstery space, said owner Tom Phelan. “We are hoping something will happen and they will come back. But reports are not positive.”
Phelan has added a Thomasville gallery and will fill in with lines it already stocks in addition to looking for other suppliers at the October High Point Market, he said.
“My primary concern right now is pieces customers have ordered that have not been delivered. That's where my energy is going,” he said, noting that Norwalk had promised delivery “but sometimes things get beyond your control.”
Both he and store executive Dave Rettig said the store plans to make customers happy no matter what and will try to switch them from Norwalk products other vendors.
“But you know what's that's like when you've sold something and customers get their hearts set on it. … It's a lot of extra work for our staff, and anxiety for a short time for the customer. But that will go away,” he said.
Phelan said the industry has been going through changes “but just recently it's accelerated. It's scary,” he said, nothing that his store has lost seven competitors in the past year.
Frank Sublett, owner of a Norwalk store in downtown Seattle, stopped selling the brand three weeks ago and brought in five other lines.
“We're starting to get some of that product on the floor,” he said, adding that the company will evaluate in the new year “to see if they're a good match for us.” The new lines include Miles Talbott, Precedent and Lexington (the store also carries Lexington case goods), plus a few pieces of Bernhardt and Robert Allen/Kravet.
Sublett said he and his wife have been involved with Norwalk for 13 years, and bought their store seven years ago.
“We were familiar with franchises and looking for a turnkey business. We felt a 106-year-old company was going to be around for a while,” he said. “I think this has pointed out to us from a business point of view that we were very vulnerable to having only one source of upholstery. We'll never do that again.”
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