Exec says Spring Air making progress
Company sticks to plan in wake of Hellyer's departure
David Perry -- Furniture Today, September 15, 2008
TAMPA, Fla. — Spring Air, which lost its CEO suddenly last week, is making progress on its operating plan and is growing its business, according to a senior executive.Kevin Damewood, executive vice president of sales, said that Spring Air remains on track to continue improving its business and is meeting its dealers' needs. He said that rumors of Spring Air's demise are unfounded.
Damewood and COO Steve Cumbow were named last week to the newly formed office of the chairman, reporting to the company's board of directors. Spring Air announced that move at the same time that it announced the departure of bedding veteran Bob Hellyer as CEO. Spring Air said Hellyer had resigned from a post he had held for just over a year.
Asked about dealers' reaction to Hellyer's departure, Damewood acknowledged that there is a sense of "disappointment." He added, "Bob was a very well liked and respected person, as he should be. But our dealers have said that they are well satisfied with how our company is performing and it is business as usual going forward."
Asked why Hellyer resigned, Damewood said it was "a mutual decision between Bob and the board." No reason for Hellyer's departure was announced, and Hellyer declined, in an interview with Furniture/Today, to give a reason.
Damewood said Hellyer, the senior management team and American Capital, the company's largest shareholder, established an operating plan designed to improve sales, boost margins and improve efficiencies in the plants. "We will continue following that operating plan," said Damewood.
Sales have been increasing in the last several months, he said. He added that Spring Air dealers say they have seen significant improvements in service and dramatic declines in returns.
Spring Air's new line, which has been in place in the market for several months, has helped the company gain share with existing customers, and has brought in significant incremental business, Damewood said.
He acknowledged that he was personally disappointed to see Hellyer leave, as the two have worked closely together for several years in the industry. "It is disappointing to a lot of people," Damewood said, "but at the end of the day we will continue to sell beds."
Since the company was consolidated in the summer of 2007, it has closed four plants and has moved the headquarters from Elk Grove Village, Ill., to Tampa. Spring Air currently has nine company-owned bedding plants and three licensees. Damewood said there are no plans to close additional plants or have additional layoffs.
Asked about persistent industry speculation that Spring Air is headed for bankruptcy, Damewood responded: "Those rumors have been going on since I came here. We've put up with a storm of competitors' actions. We have survived and we are moving forward."
American Capital is "a supporter of this industry and of Spring Air," he added. Since the company was consolidated, Spring Air has moved from a collection of independent licensees to "a unified company," Damewood said. "This company is standing on its own two feet."
He said the search for a successor to Hellyer is under way. Candidates from inside and outside the industry will be considered. The process should be completed within 90 days, according to Damewood.
