Kuder buys Virginia Sterling assets, will launch new line
By Heath E. Combs -- Furniture Today, May 10, 2010
MIDVALE, Ohio —
Industry veteran Charles Kuder has bought back the manufacturing equipment he sold to Virginia Sterling two years ago and says he plans to restart its plant here to introduce a new case goods line.
HMC Holdings, which Kuder owns, has purchased the tangible assets of Virginia Sterling, which closed in April. He did not disclose a purchase price.
Kuder already owned the real estate and factory building, which he was leasing to Virginia Sterling's owners. He said he is preparing the facility for production and will launch a new line, possibly by the spring 2011 High Point Market.
“It will be a fresh product line and fresh start. It will be new designs, new product, new everything,” Kuder said. “The people (who will work there) already have a lot of experience. So it's not like I'm trying to develop a product line and get started from scratch.”
He said the new company, as yet unnamed, is likely to offer case goods in upper middle price points in residential and contract markets.
Kuder said he is still looking for financial partners for the new venture and has some interested parties. He is also looking for a partner to help with operations.
Kuder is the founder of Canal Dover Furniture, which he ran for 21 years before selling it in 2008 to Virginia Sterling, which was operated by John and Michael Scarsella. Later, the Scarsellas sold the Canal Dover name to Valley View Oak Furniture, which continues to sell dining furniture under the Canal Dover line.
The Scarsellas said they were forced to close Virginia Sterling because the company's lender failed to continue funding its operations.
Kuder didn't buy the intellectual property rights and plans to create new brand names and designs for the new company.
“I'm not under the illusion that it's a great idea for a domestic manufacturer to think they're going to go head to head with China on the commodity business,” he said.
But he said he believes there is still a need for a domestic case goods source, now that the number of domestic producers has dramatically thinned out.
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