Furniture|Today 10/29/2001 Table of Contents

Table of Contents

Furniture|Today -- 10/29/2001

Bedding Today

Latex shortages? Not in High Point showrooms
Although supplies of latex have been tight ever since the Latex Foam Products plant in Connecticut burned down in May, the crunch wasn't evident in bedding showrooms at the October market. Latex seemed to be everywhere. Producers have been securing latex foam from Europe to Sri Lanka. Some even has been coming from Connecticut, where Latex Foam Products recently opened a temporary site to fabri...

Business Today

Financial results
Havertys earnings drop 23.9% as sales fall 3.8%
ATLANTA— Top 100 chain Havertys said it earned $5.6 million or 26 cents per share in the third quarter, down 23.9% from the same period a year ago as sales fell 3.8% to $170.6 million. "Our focus on improving gross margins resulted in third-quarter earnings at the high end of our recent 24 cents to 26 cents per share guidance," said Jay Slater, president and chief executive officer.
FBI has cash, hints at acquisitions
ST. LOUIS— Furniture Brands International says it has finished paying down its debt and is accumulating cash, which could set the company up for more stock repurchases or acquisitions. "The weak are getting weaker and we are continuing to take a sharp pencil to the many (possible) acquisitions that are out there," said Mickey Holliman, chairman and chief executive officer, in announcing t...
O'Sullivan's operating earnings rise
LAMAR, Mo. — O'Sullivan Inds. Holdings, parent of ready-to-assemble furniture major O'Sullivan, reported an increase in operating earnings in its first quarter even though sales declined as expected. Sales for the three months ended Sept. 30 were down 4.6% to $86.3 million, but adjusted EBITDA — or earnings before interest, taxes, depreciation and amortization — rose 11.

News

Board members pleasantly surprised with fall market
HIGH POINT— Members of the board that runs the High Point market were pleasantly surprised with the October show and expect bigger opportunities in six months. Meeting as the market was winding down, the High Point International Home Furnishings Market Authority said that all of the Top 100 furniture stores attended and all but a few of the second 100.
Authority bids farewell to Morgan and Phillips
HIGH POINT— The International Home Furnishings Market Authority held a farewell party after its meeting last week for two departing board members. Jim Morgan of the High Point Convention and Visitors Bureau resigned from the board and was replaced by Chris Greene, who chairs the bureau board. Greene and her husband also own manufacturer Classic Gallery.
Marketgoers suggest shuttles start earlier
HIGH POINT — What do buyers and exhibitors want in a High Point market? Members of the Market Authority Advisory Committee made a list and the group's chairman, Steve DeHaan, executive vice president of the National Home Furnishing Assn., presented it at the authority's meeting last week. He also said that lodging prices were somewhat lower this market.
IHFMA backs application for transit funds
HIGH POINT— The International Home Furnishings Market Authority has given its support to an application seeking $3.5 million in federal funds for transportation projects. Judy Mendenhall, president of the authority, said the city of High Point might use some of the money to provide two park-and-ride lots, which would decrease traffic during furniture markets and thus lessen air pollution.
Harleys reflect brother's love
HIGH POINT— Two rare, all-chrome-plated Harley Davidsons that were on display at the Standard Furniture showroom here have a touching history. Retailer Bob McKinney of McKinney's Furniture, based in East Liverpool, Ohio, brought the motorcycles to High Point to share the story. They're 1952 models and have chrome on just about every square inch of surface but the seats.
Vegas city council delays tax vote
LAS VEGAS— For the fourth time, the Las Vegas City Council delayed its vote on tax breaks for the proposed World Market Center. Two council members indicated they needed more information, said Erik Pappa, public information officer for the city. The vote now is set for Nov. 7. Las Vegas Mayor Oscar Goodman, a driving force in government discussions about the proposed $750 million furnitur...
Hickory Chair licensed for Mariette Himes Gomez line
HICKORY, N.C.– High-end upholstery and case goods manufacturer Hickory Chair will produce a furniture line licensed by interior designer Mariette Himes Gomez. The collection will debut at the April 2002 High Point market. Gomez, elected to the Interior Design Hall of Fame in 1994, is known for combining modern simplicity with luxurious materials and environments.
Toronto winter market renamed
TORONTO— The winter market here has been renamed The Canadian Home Furnishings Market, reflecting its status as this country's only national furniture event. The 2002 show is set for Jan. 12-15 at the Toronto International Center of Commerce. "This event showcases the full spectrum of furniture that's made in Canada," said Jean François Michaud, executive vice president of the Quebec...
Corrections & amplifications
The trio of chairs pictured on page 16 of Furniture/Today's Oct. 15 issue should have been identified as the Three's Company collection from Mary Kaiser Ltd.
Nationwide files Chapter 11, names Meiser CEO
NORCROSS, Ga. — The parent of Top 100 store Nationwide Warehouse & Storage has filed for Chapter 11 bankruptcy protection and hired a new management team to steer the retailer back to profitability. NWS Holdings listed assets between $10 million and $50 million and debts of more than $100 million.
Hakakians receive court OK to acquire Krause's
BREA, Calif. — Alex Hakakian and two of his brothers have approval from U.S. bankruptcy court to buy Krause's factory equipment and lease about 40 stores under a revised plan to rescue the company. The Hakakian Group, which includes Alex and brothers Kay and Nader Hakakian, hope to bring in additional suppliers to the Top 100 maker and retailer of custom upholstery, which filed for Chapt...
Natuzzi to make retail moves
HIGH POINT— Natuzzi will overhaul its gallery program next year as well as open freestanding, dealer-owned Natuzzi stores. Using its existing retailer base, Natuzzi will test six to 10 gallery locations starting in the spring before embarking on a full-fledged rollout, said Fred Starr, president and chief executive officer of Natuzzi U.
Casual dining gets assertive
HIGH POINT— Casual dining asserted itself as a fashion category, particularly at the better and best price points. Executives said the pressure is on to continuously produce new looks to meet ever-changing consumer tastes. "Traditionally, you don't see major dining efforts in October," said Dan Masters, president of Richardson Bros.
NHFA's Haimsohn aims to deepen industry ties
HIGH POINT— Howard Haimsohn was elected president of the National Home Furnishings Assn. at its meeting during the October furniture market here. He assumes office Jan. 1. Haimsohn, of Lawrance Contemporary Home Furnishings in San Diego, cited the need to continue the NHFA's mission to serve all home furnishings retailers, to provide leadership on government issues and industry education,...
Tomlinson purchases Directional
HIGH POINT— Tomlinson/Erwin-Lambeth, a producer of high-end, traditional upholstery, has expanded its style horizons with the purchase of Directional, a high-end contemporary upholstery maker. Terms of the sale were not disclosed. Tomlinson bought Directional from CF Group Inc. of Southern Pines, N.
Furniture First explores own bedding line
HARRISBURG, Pa. — The Furniture First buying group will seek bids from bedding producers to develop a private-label promotional line for member stores, to be called Mattress First. President Bill Hartman said the group needs promotional bedding because name brands aren't focusing on that segment of the market.
Better than expected
HIGH POINT— So ... what if they held a market and a lot of people didn't show up? Well, they just did, and it wasn't so bad. Most manufacturers said business was well above expectations — which admittedly were low — even though attendance was down as much as 35% in some showrooms. Those who didn't come were mostly small- to medium-sized merchants and international buyers who d...
August orders off 4%, BDO says
HIGH POINT— New orders in August were down 4% from a year earlier at U.S. residential furniture factories, and shipments were off 11%, according to BDO Seidman. It was the 12th straight month of declines in monthly orders compared with the previous year, the accounting and consulting firm said.
Sluggish economy limits 1st-half import gain to 3%
HIGH POINT— A sluggish U.S. economy put the brakes on furniture imports in the first six months of 2001, including shipments from offshore leader China. After total furniture imports surged 22% in the first half of 2000 compared with 1999's first six months, this year's first half registered a relatively weak 3% gain to just over $6 billion.
Furniture exports register 7% decline
HIGH POINT— After a year in the sun, U.S. furniture exports resumed their slide, dropping 7% for the first six months of this year compared to 2000's first half. The $68 million dip to $858 million compares to a 13% gain for the comparable six-month period a year ago. Half of the countries in the Top 10 registered decreased demand for U.

Opinion Today

'Asterisk market' poses some new questions
The questions surrounding the October edition of the International Home Furnishings Market have been answered. Yes, attendance was off substantially. No, security was not obtrusive. And yes, the retailers who came were serious and did make plans for better days next year. Everything considered, this "asterisk market" was a decent one.
The show must go on, at market and in stores
I don't know about you, but I had a great market. There was plenty to see, a lot of innovation, a lot of showmanship and a lot of heart … both from exhibitors and buyers. Make no mistake, attendance was down and down considerably. My personal take was that the big domestic buyers showed up, while many of the international and small- and mid-sized domestic dealers stayed home.
Assessing a play-it-safe market
It was a market with low expectations, perhaps the lowest expectations ever for a High Point home furnishings event. As a result of those limited expectations, neither manufacturers nor retailers were disappointed. Retailers reported the tenor of the October event was essentially one of playing it safe, although there were some minor glimmers of newness.

People Today

Brinkley named Home Gear president
GLENVIEW, Ill.— Industry veteran Jesse Brinkley has been named to the new position of president of the Home Gear division of bedroom, occasional, and entertainment and wall system importer Prime Resources International. "Jesse will be responsible for all sales and sales management, key and national accounts, and product development for Home Gear," said Kevin Gallagher, chief executive o...
Giles joins Universal as vp of merchandising
HIGH POINT—Stephen Giles has joined case goods importer Universal Furniture as vice president of merchandising, a new position at the bedroom, dining and occasional supplier. Giles comes to Universal from Lane, where he also was vice president of merchandising. Previously, he held similar positions at Henredon and Century.
DeRose is Lane's case goods merchandise mgr.
TUPELO, Miss.—Jim DeRose has been named merchandise manager for case goods at Lane. He assumes the responsibilities of Stephen Giles, former vice president of merchandising, who left to become vice president of merchandising at Universal. DeRose shares merchandising responsibilities with Philip Siler, named merchandise manager three months ago.
Frank tapped to manage sales in U.S. for Leda
TORONTO—Bill Frank has been named U.S. sales manager of Leda, a maker of high-end case goods based here. Before joining Leda, Frank held posts with Homestock Furniture, American Impressions and P.J. Kids. He reports to Lino Confalone, Leda's president. "We are very pleased to add Bill Frank to our sales team," Confalone said.
La-Z-Boy revamps sales regions, adds 2 regional mgrs.
MONROE, Mich.— La-Z-Boy has added a sixth sales region and two regional sales managers as part of a restructuring of its sales regions. The company has divided its Central sales territory into South Central and North Central and has realigned its West, Midwest, East and Southeast regions. Al Matthews and Doug Kinde have joined La-Z-Boy as regional managers for the South Central and No...

Special Report

Market Highlights
Case goods mfrs. put feet on promos
HIGH POINT — With market attendance down, case goods manufacturers were taking extra measures to make sure what they believe was a strong slate of new product didn't go by the wayside. Many offered extended market specials and promotions, and many sales representatives made an early exit from High Point so they could hit the road to drum up business.
Market Highlights
Mark David joins hands with Classic Gallery
HIGH POINT— Contract case goods producer Mark David entered the residential end at market by teaming with upscale upholstery specialist Classic Gallery. Sixty pieces of Mark David dining cabinetry and occasional were on display in Classic's market showroom. The two companies are uniting as a single source for residential furniture retailers, offering four- to six-week shipping from High P...
Market Highlights
Upholstered beds, platform looks build on leather, sleigh bed trend
HIGH POINT— Upholstered beds and platform looks caught buyers' eyes in case goods showrooms at market, with both looks playing on the popularity of leather panel beds and sleigh beds. The new product, however, took the style features — flexibility and texture for leather beds and the low fronts of sleigh beds — a step further.
Market Highlights
Smaller is beautiful in SOHO showrooms
HIGH POINT — Small office/home office producers enjoyed an active market here, despite a falloff in attendance among the ranks of smaller furniture stores and international buyers. "We had a solid market," said John Hendrix, vice president of sales for Office Star. "Those dealers who came were looking for ways to freshen up their floors and create new excitement.
Market Highlights
Bestar eyes traditional furniture stores
HIGH POINT— Bestar unveiled at market a series of ready-to-assemble furniture targeting traditional furniture stores. The Canadian company isn't abandoning the warehouse clubs and office product superstores that continue to sell its small office/home office workstations, but is looking to develop more business in the furniture store channel.
Market Highlights
Youth segment continues growth spurt
HIGH POINT — One bright spot on the furniture landscape at the just-concluded market was the youth category. Producers in the growing segment reported brisk business and upbeat buyers eagerly looking for new groups to fill retail floor space and capture the consumer dollars earmarked for kids' rooms.
Market Highlights
Softer, plusher mattresses prove hard to ignore
HIGH POINT— Mattresses made softer by a variety of foam and fiber cushioning attracted the lion's share of attention in bedding showrooms this market. While few producers abandoned the concrete-like firmness levels that dominated many lines only a few years ago, such models clearly took a back seat to more plush versions — especially at the upper end of the price spectrum.
Market Highlights
Rug vendors take style pulse for January
HIGH POINT — Traffic control has never been a problem for rug vendors at the furniture market, so this market's attendance dip met with only slight shrugs of disappointment. Rug companies were looking ahead to January's big market in Atlanta and several vendors gave January lines a sneak preview here last week.
Market Highlights
Fashion, innovation propel glider rockers
HIGH POINT— Fashion fabrics, leathers and updated finishes coupled with innovative technologies drove glider rocker sales at market as retailers gear up for the key Christmas selling period. Manufacturers supported this effort by promising quick delivery — new pieces shown here will be on retail floors before Dec.
Market Highlights
Faux suedes a real hit
HIGH POINT— Faux suede upholstery fabrics brought a sophisticated flavor to more showrooms than ever at market and showed up at every price point, thanks to an influx of lower-priced imports. Frames were dressed in the upscale European look of microdenier faux suede fabrics in an array of solid colors from organic shades to pales to brights.
Market Highlights
Entertainment: It's a matter of adjustment
HIGH POINT — Entertainment furniture is an increasingly active opportunity for flat-pack furniture makers, who were offering more sizes, shapes, colors and prices than ever at market here. New designs reflected the dimensions and colors of flat-screen and high-definition TVs. "We're developing products to go with the high-ticket, high-design TVs of today," said John Ledek, vice presiden...
Market Highlights
Beds show their mettle
HIGH POINT— Metal bed producers left High Point breathing a collective sign of relief as surprisingly strong showroom traffic kept them reasonably busy. Producers said that, while overall market attendance clearly was down, they saw about the usual number of buyers. That was due partly to extensive new product, but producers also said retailers often focus on promotable categories like m...
Market Highlights
Fund raiser nets $1.3M
GREENSBORO, N.C. — A fund-raising market dinner for the City of Hope netted over $1.3 million for the not-for-profit California medical and research facility. The total was the largest ever raised at the home furnishings industry's annual City of Hope gala. Steve Kincaid, president of manufacturer Kincaid Furniture, and retailer Bill Kimbrell, president of Atlanta-based Rhodes Furniture, ...
Market Highlights
Market Highlights
Market Highlights
Southern changes to SouthPort
ELIZABETHTOWN, N.C.— Bedroom, dining and occasional source Southern Furniture Reproductions is changing its name to SouthPort Furniture and also is switching from domestic production to sourcing overseas. "We believe this new name complements our present product mix, and marks the starting point for the direction of our new product introductions," said company President McQueen Campbell.
Market Highlights
Fresh looks entice buyers
HIGH POINT— Occasional furniture producers enticed retailers with plenty of new and different looks this market. Business has been off for many manufacturers and importers this year. "People want to see fresh new designs," said Bill Becker, president of Becker Designed Inc. "Now more than ever, people need a reason to smile.
Market Highlights
Good product wins good business
HIGH POINT— Stationary upholstery producers who brought something special to market got something special in return: Good business. In a down market, some upholstery producers still managed to do well. They said major retailers attended and made healthy orders and commitments. Many smaller dealers skipped the show, and producers said sales representatives already have hit the road to brin...
Market Highlights
BenchCraft 'Murphy Home' collection gets good reception
HIGH POINT— Upholstery major BenchCraft got a strong response here to its new Beverly Murphy Home collection, which uses pre-coordinated fabrics in colors inspired by nature to make home decorating easy for consumers. Grouped into four color palettes representing the four seasons, the upholstery is offered with coordinated accent rugs, pillows, top of bed and throws, all designed by Murph...
Market Highlights
Watch out, loveseats! Settees are sitting pretty
HIGH POINT— Loveseats, look out! Settees are settling in for a long run in upholstery. Settees, accent upholstery pieces stylish enough to stand on their own, are rising stars on retail floors. That's one big reason producers showcased a wide assortment of new settees here. They say consumers like the variety of roles settees can play in the home.
Market Highlights
Leather arena brimming with better values
HIGH POINT— Pricing, although a major consideration, was overshadowed by value at the October market, according to leather upholstery manufacturers. The swirl of trepidation as buyers and sellers headed to market largely evaporated during the show. Dealers were king — if only because they showed up.
Market Highlights
Big walls, smaller pieces a hit in home entertainment
HIGH POINT— Wall systems were big hits in several home entertainment furniture showrooms here, but smaller pieces also found buyers. As usual, introductions appealed to a broad array of tastes and were geared to accommodate the ever-changing variety of televisions, sound systems and other consumer electronics.
Market Highlights
Price takes back seat to style in motion
HIGH POINT— Price wasn't the biggest issue for motion makers at the market here last week. "We didn't come in thinking this was going to be a price-sensitive market," said Jerry Baker, executive vice president of marketing and national accounts at PeopLoungers. Baker and other company executives said consumers are looking for more than low-ball prices.
Market Highlights
Size counts among recliner, motion upholstery intros
HIGH POINT— Pardon the cliché, but size matters in motion. That proved true in offerings this market, which included products made for little and big bottoms, and for little and big living spaces. And the emphasis seemed to be on the "little woman," who, manufacturers say, needs a smaller recliner to make herself comfortable.
Market Highlights
Popcorn pulls up chair for women
HIGH POINT— Faith Popcorn says she doesn't have a recliner in her home, but she will soon. She'll pick from her own collection, called Faith Popcorn's Cocooning Chairs for La-Z-Boy, unveiled with considerable fanfare during the market here last week. The collection of scaled-down recliners, in a variety of covers, a push-back mechanism, and upholstered or wood arms, is the result of inter...
Market Highlights
RTA resources cover more and more bases
HIGH POINT— The evolution of ready-to-assemble furniture continues at an impressive pace. Looking to kick-start business after a 12-month stall, flat-pack furniture makers came to market with numerous innovations, expanding into new materials and product categories and adding features. Most of the big-box retailers who sell flat-pack furniture got a peek at the new introductions, although...
Market Highlights
Best of market
Producers introduced plenty of market hopefuls in the face of a sagging economy, and, well before the monumental tragedy on Sept. 11, vendors were already preparing a wide range of offerings that tapped into homeland themes. Shaker and Mission stylings with a new softer look appeared, and other new takes on American style themes were in many showrooms.

Store Openings

Badcock launches 3 more
MULBERRY, Fla.— Top 100 chain W.S. Badcock has launched three more Badcock Home Furniture & More stores in Florida and Georgia. Palmetto, Fla., is home to an 11,200-square-foot store owned and operated by Bill Whidden. Owner/operator Darrel Rye has opened a 17,000-square-foot store in Warner Robins, Ga.
Coopers opens Kincaid gallery
Cary, N.C.— Coopers Furniture has opened a Kincaid Solid Wood Gallery inside its store in this Raleigh suburb. The gallery is 6,500 square feet. The store also features Kincaid's custom upholstery and decorative accessories.
Kittles expands Ft. Wayne unit
FORT WAYNE, Ind.— Top 100 store Kittle's Home Furnishings has expanded its store here by 32,500 square feet, creating the first prototype of a Kittle's/Kittle's Express Superstore, encompassing almost two acres under one roof. The store features a Kittle's Rooms Express section, a room-package concept previously operated separately from Kittle's Furniture stores.
Cost Plus World Market adds 2
OAKLAND, Calif.—Cost Plus World Market has opened stores in Kildeer, Ill., and Oxnard, Calif., both about 18,000 square feet. The chain's mix of imported home décor items, tabletop accessories, decorative gifts, gourmet foods and beverages includes recycled wood furniture from Indonesia.
Carl's installs French Heritage
LAGUNA HILLS, Calif.— Tom and Shelley Carl, owners of Carl's Fine Furniture here, have installed a 1,000-square-foot French Heritage shop. This is the fourth French Heritage shop-within-a-shop in the United States, featuring hand-crafted French furniture inspired by French antiques. Tom Carl is the son of Ray Carl and the grandson of store founders Maurice and Esther Carl.

Up Front

Great American Oak shuts down
CHINO, Calif.— Home entertainment manufacturer Great American Oak has closed and is selling its equipment. Owner Earl Payton will focus on other business ventures, according to Duane Utt, former vice president of sales. As recently as the April market, the company was expanding its line, introducing adult bedroom furniture for the first time.
Moh sets up $3M scholarship fund
HIGH POINT— Larry Moh, who led Universal to prominence as a marketer of Asian-made case goods, is establishing a $3 million fund to help students pursuing furniture industry careers. Moh, now head of importer Fine Furniture Design & Marketing, announced creation of the Celia Moh Scholarship Foundation, in honor of his wife of 42 years, at a dinner during the October market.
E-commerce players don't expect taxes
WASHINGTON— A federal moratorium on Internet taxes expired last week when Congress declined to extend it, but e-commerce companies in furniture do not foresee significant changes now that the ban has expired. The moratorium prohibited Internet-only taxes, or taxes levied on businesses or business practices relying exclusively on the Internet.
Havertys eyes additions
Atlanta— Havertys said last week it is looking at as many as 10 new stores, including eight HomeLife locations it might take over. "We see the economic slowdown as a time for opportunistic expansion and we have several sites under consideration," said Jay Slater, president and chief executive officer of the 104-store, Top 100 chain.
Palliser, partner buy C&D
HIGH POINT— Palliser Furniture, owner of the 220 Elm showroom building here, has teamed with a real estate investment company to buy 220 Elm's next-door neighbor, the Commerce and Design Building. The purchase gives Palliser and Greensboro, N.C.-based HVM Management more than 610,000 square feet of downtown High Point showroom space.
Hall of Fame inducts 4
HIGH POINT— Four new members have joined the American Furniture Hall of Fame. Inducted at a market gala were manufacturer Alvin E. "Bo" Bland, co-founder of Action Inds.; pioneering designer David Wolcott Kendall; consumer education advocate Joanna Maitland, and Michigan retailer Art Van Elslander.
R.C. Willey in Las Vegas
HENDERSON, Nev.— R.C. Willey Home Furnishings kicked off the opening of its new store here with a visit from legendary investor Warren Buffett and news that a second store in greater Las Vegas is on the drawing board. Buffett, chairman of Omaha, Neb.-based Berkshire Hathaway, which acquired R.C.
JCPenney may add bedding to as many as 500 more stores
PLANO, Texas— JCPenney is looking at selling bedding in as many as 500 more stores. Charles Chinni, senior vice president, home and fine jewelry, said that management is looking at adding bedding to stores that currently don't sell any furniture, but are in markets where other JCPenney stores have furniture departments or there are JCPenney freestanding home stores.
Sears also may expand bedding's reach
CHICAGO— Sears aims to beef up its bedding sales as it restructures its full-line stores and trims its work force over the next three years, the company told analysts last week. Alan Lacy, chairman and chief executive officer of the Hoffman Estates, Ill.-based retail giant, said that mattresses drove much of the sales gains in Sears' home fashions segment in the third quarter.

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