DSG acquires Phillips
January 9, 2014-- Furniture Today,
St. Louis - With Dufresne Spencer Group's acquisition of Phillips Furniture here late last year, the Top 100 company nearly doubled its store count in 2013 and put in place the last piece of a puzzle that should boost sales to about $250 million by the end of 2014.
Memphis, Tenn.-based DSG purchased the operations of eight-store, St. Louis-based Phillips Furniture for an undisclosed amount. DSG took over Phillips' seven licensed Ashley Furniture HomeStores in Missouri and Illinois as well as the Phillips Furniture namesake showroom in Kirkwood, Mo., and a warehouse and home office for an undisclosed amount.
DSG, which also operates Ashley HomeStores and the multi-line Stash Home in Alabama, Arkansas, Indiana Kentucky, Mississippi, Tennessee and Texas, has no immediate plans to change any of the formats.
"We intend to leave the stores alone for now just the way we found them and try to understand their success before we bring about change," said Chad Spencer, DSG president.
Dufresne Spencer Group is No. 59 on Furniture/Today's Top 100 with 19 stores at the end of 2012 and sales of $98 million. Phillips is No. 82 on the list with furniture, bedding and accessories sales of $61.7 million in 2012, up from $51.3 million in 2011.
Phillips was the second Top 100 acquisition of 2013 for DSG, which acquired Louisville, Ky.-based KHF Holdings in November. KHF operated HomeStores in Louisville, Indianapolis and Terre Haute, Ind., and an outlet in Richmond, Ky., which will be converted to a HomeStore.
DSG now has 34 stores, including 27 Ashley Furniture Home-Stores, three HomeStore Outlets and two Stash Home stores.
Spencer has said he expects the retailer to do about $125 million in sales in 2013, up about 28% from the year before, and about $250 million in 2014 - or double last year's volume. He confirmed that the Phillips acquisition was the final piece needed to shoot for this year's sales goal.
Phillips Furniture became a licensee of Ashley Furniture in 2004. The company employs about 350 people at its stores, warehouse and administrative offices. All employees are expected to keep their jobs.
A spokesperson for DSG said the principals at Phillips Furniture are retiring or moving into other areas.
"We are excited to see where we can take the Ashley brand in Missouri and Illinois," Spencer said in a statement. "We are very grateful to the Phillips family for this opportunity and are committed to building on the wonderful legacy Steve Phillips and his family have left for us."
DSG CEO Jim Spencer added that his company's rapid growth last year "speaks to the strength of our team.
"We're so fortunate to have the support of our understanding families, our dedicated partners and our passionate team members as we continue to grow and to bless our teams and our customers."