UPDATE: Danker Furniture presence shrinking in Washington

Most stores will reopen as Sheffield Furniture

Clint Engel -- Furniture Today, 11/11/2008 12:48:50 PM

GAITHERSBURG, Md. — The owner of Danker Furniture is converting three of its four high-end stores in greater Washington, D.C., to the sister retailer banner Sheffield Furniture.

Severegn Furniture Management has begun a $15 million closing sale at its Danker stores in Annapolis and Rockville, Md., and Pentagon City, Va.

The remaining Danker in Dulles, Va., and the Rockville store are expected to grand-open as Sheffield Furniture in February, according to a release. The Annapolis store, the largest location at 45,000 square feet, probably will become a Sheffield design studio and a clearance outlet.

Danker's lease is expiring next summer in Pentagon City and the company is looking for a replacement for that unit, but the name of the store has not been determined, the company said.

"We believe the Danker name has value in the D.C. market and we are continuing to consider options for keeping one Danker store," said James Shrawder, president of Severegn, which owns Danker in greater Washington and Sheffield in Philadelphia. He noted that Danker draws a contemporary-oriented consumer that Sheffield may not attract as well.

The company holds regular Danker warehouse sales at its 50,000-square-foot warehouse in Gaithersburg, Md.

"We plan to continue that for the foreseeable future and may evolve that to a full (Danker) store if we can't find a suitable location in the Alexandria or Pentagon City-Arlington area," Shrawder said.

The company said the move is marketing-related and not connected to business conditions. Since Severegn's acquisition of Danker in January 2007, the plan was always to convert the stores to Sheffield, a design-oriented approach that "is by far our most successful format," Shrawder said.

He said that despite poor business conditions in the area and due in part to Danker's large commitment to Stickley, the chain has continued to be profitable. That gave Severegn time to make a slow transition.

It already has updated computer systems and inventory management practices, restructured business processes, and hired some managers and salespeople from the upscale Mastercraft Furniture & Interiors, which closed in 2006.

Shrawder said the D.C.-area stores will keep most of Danker's existing suppliers.

"However, we will increase our emphasis on those fine furniture manufacturers who, like Stickley, demonstrate a sense of responsibility and loyalty to their employees and retail partners," he said. "Stickley is and will remain Sheffield's number one resource."

Lynch Sales is running the closing sale, which is expected to be completed in two months. Severegn wouldn't say how much business the sale is expected to generate.

In October, Severegn closed its Gallahans of Fredericksburg, Va., store after a turnaround plan didn't meet the company's goals. Severegn acquired Gallahans' assets and lease from Stone-Lee in January 2007.