Rivals chase Berkline motion upholstery business

Retailers want to replace company on floors quickly

Larry Thomas -- Furniture Today, April 4, 2011

HIGH POINT — The sudden demise of Berkline has sent retailers scrambling here to replace the floor slots now occupied by the defunct motion upholstery producer.

Exhibitors at this week's High Point Market that once competed with Berkline say buyers are looking to fill those slots quickly, and vendors that have domestic production or a sizeable domestic warehouse stock believe they are in the best position to get that business.

"The problem (for Berkline dealers) is that they have samples on the floor, but no inventory to back it up," said Chuck Tidwell,vice president of merchandising and product development at Franklin. "That's just dead space for them."

Franklin and several other upholstery producers see plenty of opportunities to gain additional business, and most are emphasizing their ability to ship product quickly.

"We think our domestic production gives us an advantage," said Greg Roy, president of Lane. "We can crank up new production lines quickly if we need to."

Franklin, Lane, Catnapper, Southern Motion, La-Z-Boy, Best Home Furnishings, Klaussner and Palliser are among those with North American production that could benefit almost immediately, executives said, although importers such as Man Wah/Cheers also could gain business because of their high volume and low cost structure.

Executives agreed that Berkline was the market share leader in home theater seating, and vendors such as Palliser and Lane see big opportunities in that category.

"The category grew over 40% for us last year, and we think we can grow it even more this year," said Palliser President Cary Benson. "We believe Berkline was the only company that was doing more home theater business than us."

Lane helped its cause by hiring Bo Morrison, Berkline's former merchandise manager for recliners and home theater.

Roy noted that Lane's latest national advertising campaign positions the company as a leader in home entertainment furniture, and said the disappearance of Berkline presents even more opportunities for new business in the category.

"We've already experienced some good gains in home theater ... and we will continue to benefit from it," he said. "But whenever one competitor goes away, there will be at least two new ones taking their place."

Berkline suddenly ceased operations Wednesday after the financially troubled company was unable to find a buyer.

Sales representatives and other employees were in the midst of preparing the company's High Point showroom when the shutdown was announced. Since then, samples have been moved out and the showroom doors were locked.

The company said its assets will be liquidated to pay down debt. It's not clear if a bankruptcy filing will be made.