Furniture|Today 01/28/2002 Table of Contents

Table of Contents

Furniture|Today -- 01/28/2002

Bedding Today

Profits reach new highs with high-end bedding
There's some debate about how to describe it, but there's no debate about its growing clout in the marketplace. Call it luxury bedding or high-end bedding or ultra-premium bedding, but spell it this way: Profitable. Elsewhere in this issue you'll find an overview of this hot category. We have taken the somewhat unusual step of running pictures of several high-end beds.

Business Today

FBI sales drop 10.6%, net income slips 45.2%
ST. LOUIS— Despite a strong performance by its Lane upholstery unit, Furniture Brands International said 2001 sales fell 10.6%, while net income tumbled 45.2%. FBI fell short of the record $2.12 billion in sales it posted in 2000, but said its December acquisitions of Henredon, Drexel Heritage and Maitland-Smith should easily push the company over the mark this year.
Lane sells IHFC stake
HIGH POINT— Lane Furniture has sold its 12% stake in the International Home Furnishings Center, High Point's largest showroom building. The disclosure came last week as Furniture Brands International, Lane's parent company, announced its 2001 financial results. FBI reported a one-time gain of $5.
Sears Canada net earnings plunge 58.3% despite 5.8% sales increase
TORONTO— Sears Canada, this country's largest single retailer, said sales in 2001 climbed 5.8%, but rising costs and a generally weak Canadian economy caused a 58.3% drop in net earnings. Total revenues for the 52-week period ended Dec. 29 were C$6.7 billion, compared to C$6.4 billion in the previous year.
Buffett acquires remaining Shaw shares
OMAHA, Neb.— Investment company Berkshire Hathaway, headed by Warren Buffett, has acquired the remaining shares of Shaw Inds., which makes rugs and other floor coverings. Buffett bought a majority stake in Shaw for $2 billion a year ago. Berkshire Hathaway purchased the final 12.7% of Shaw in exchange for 4,740 class A Berkshire Hathaway shares.
Guilford Mills gets reprieve
GREENSBORO, N.C.— Fabric supplier Guilford Mills, which was close to a possible bankruptcy filing last week when it could not make an overdue interest payment, now has until Feb. 15 to make the payment. The previous deadline for the company's noncompliance waiver was Jan. 18, but the company and its lenders agreed to extend the waiver while attempts are made to restructure the textile com...
Chromcraft to buy Court Square stake
DELPHI, Ind.— Furniture manufacturer Chromcraft Revington will buy all 5,695,418 shares of its common stock owned by Court Square Capital Ltd., a unit of Citigroup, for a total of $59.8 million or about $10.49 per share. The company expects the purchase to close during the first quarter of this year.

News

Motor carrier moves to N.C.
HICKORY, N.C.— Wiseway Motor Freight moved its regional office here. The office officially opened Jan. 11. Wiseway's corporate office is still located in Hudson, Wis. The new location will be the base for future services, including residential delivery, less-than-truckload shipments of furniture and improved turnaround times on delivery returns.
New Lexington display a hit with N.C. retailer
GRANITE FALLS, N.C.— Charles and Teresa Thomas have owned a thriving furniture store here for 21 years, and expect to do even better with their dedicated Lexington display space.Thomas Furniture was expanded last year to 54,000 square feet, in part to create a 12,000-square-foot area devoted to Lexington's brands.
Lexington will close N.C. youth BR plant
LEXINGTON, N.C.— Full-line manufacturer Lexington Home Brands plans to close its 600,000-square-foot youth bedroom plant here in early April. Production will transfer to Lexington's other four plants in Davidson County, N.C. "We're not eliminating any product, we're combining operations," said Ken Hudson, vice president of human resources.
Sleepmaster to pay Leggett first
WILMINGTON, Del.— A U.S. Bankruptcy Court judge here has granted Sleepmaster's request to pay components supplier Leggett & Platt virtually all the $26 million it was owed when the bedding producer filed for Chapter 11 protection in November. In her order, Judge Mary Walrath designated Leggett & Platt as an "essential trade creditor," which means the company's claims will be paid ...
Wang joins DMI Desk
LOUISVILLE, Ky.— Earl Wang has joined DMI Furniture as vice president of sales for its DMI Desk division. He most recently was with Universal Furniture, where for the past two years he focused on product development and merchandising for mass merchants like Costco, Sam's Club and BJ's. Prior to that, he spent 13 years with Riverside Furniture as director of merchandising, wood lines.
Kathy Ireland, Shaw launch youth rug line
ATLANTA— Kathy Ireland unveiled juvenile rugs by Shaw at the rug market here, and is introducing this week at the Las Vegas Surfaces show a licensed line of ceramic tile flooring by Shaw Inds. That will give Ireland, in partnership with Shaw, a full line of floor covering products. "The Kathy Ireland collection (for adults) is Shaw Rugs' top line in sales, and also is one of the best-sell...
Aurora set to market Jeep office chair line
NEW YORK— Jeep Consumer Products is teaming up with Aurora Corp. of America to develop a collection of Jeep office chairs for home and office use. Due to hit retail floors this spring, the chairs are expected to be sold through office superstores and other office furniture stores, as well as Jeep automobile dealers.
Quaker offers Kaswere line
HIGH POINT— Quaker Fabric introduced at Showtime here its first collection of Kashwere fabrics under a long-term, worldwide, exclusive agreement for decorative/upholstery fabrics and top-of-the-bed textiles. Kashwere is a microdenier polyester yarn that creates the feel of cashmere while offering the physical properties of heavy-duty fabrics.
Rent-A-Center faces stockholder suits
PLANO, Texas— Rent-to-own giant Rent-A-Center is facing class-action lawsuits charging the company with making false and misleading statements about its condition last year when it announced first-quarter results without disclosing rising costs. The suits, filed in U.S. District Court in Texarkana, Texas, by law firms from several states, names as defendants former Chairman and Chief Exec...
Mfrs. rooting for Kmart
TROY, Mich.— With furniture sales of more than $700 million in jeopardy as a result of Kmart's filing for Chapter 11 bankruptcy protection this month, industry executives hope the big retailer can survive in a healthier, if smaller, form. Within the industry, the ready-to-assemble furniture segment and area rug suppliers appear to be taking the hardest hits from the filing, the largest ev...
San Fran continues upbeat trend
SAN FRANCISCO— Surprisingly good business in the last 60 days drew retailers to the winter market here, looking to replenish tight inventories and prepare for the coming season. With attendance up from a year ago and order-writing brisk, the show here continued this month's string of uplifting markets, including the Toronto furniture show, the rug market in Atlanta and the gift show in Ne...
Lexington turns up heat on branding
LEXINGTON, N.C.— Lexington Home Brands is building on recent sales increases by focusing more tightly on its stable of branded lines, with a further boost expected from new TV advertising, says President Bob Stec. In addition to such stalwart collections as Bob Timberlake and Tommy Bahama, the century-old manufacturer and importer markets a bevy of other brand-name lines — Henry Lin...
QIP to market synthetic leathers from Japan
MARIETTA, Ga.— Quality Imaging Products, a supplier of laminating equipment to the furniture industry, is the exclusive distributor of Japan's Asahi Gosei Kagyo Co.'s synthetic leathers in North and South America. Under the brand name Syntex, QIP will market, distribute and inventory the synthetic leathers in two different grades and 24 colors.
Leder starts recruiting firm
MARIETTA, Ga.— Sam Leder, a furniture industry veteran as a retail manager and consultant, has started his own headhunting firm. The company, The Recruiting Leder, will focus on recruiting and hiring retail managers and consulting on human resources issues. "The need for management talent in home furnishings stores is still critical," Leder said.
Obituaries
Obituaries
Linon to take 220 Elm space
HIGH POINT— Linon Home Décor has taken a showroom in 220 Elm for the April market, reinforcing the building's role as a showcase for affordable yet stylish furniture. Linon, which imports solid-wood ready-to-assemble furniture and other furnishings for national chains and catalogers, will have 7,000 square feet on the building's second floor, which is the ground floor from Elm Street.
Gold Bond taps two veterans for VP positions
HARTFORD, Conn.— Gold Bond Mattress, one of the nation's oldest and largest independent mattress makers and a major producer of futons, has added two bedding industry veterans to its management. Andrew Freedman was named vice president of sales and marketing for mattress and futon products, a newly created position.
Sleep Country operating with Gers software
SAN DIEGO— Sleep Country USA, a Northwest bedding chain based in Kent, Wash., is successfully using the Enterprise 1 and Retail Analyst software packages by GERS Retail Systems here. The retailer said the software has eliminated manual processes, improved inventory turns, and analyzed merchandising information to identify revenue opportunities.
Micro*D sets Jan. 31 seminar on Internet use
HICKORY, N.C.— The second annual Internet in the Furniture Industry seminar from Internet marketing services company Micro*D is set for Jan. 31 in Hickory. The luncheon seminar, designed primarily for furniture manufacturers, will be held from noon until 2 p.m. at the Park Inn Gateway Conference Center.
True Seating to make Lane office chairs, RTA
IRVINE, Calif.— Office chair source True Seating will produce under license a line of office seating under the Lane brand name. The line, to be previewed to retailers in February, will begin hitting retail floors in May, according to Dan Tacheny, vice president of sales for True. Styling details have yet to be worked out, but the line will focus on higher-end office seating for managers a...
Scheu named Kimball Home general mgr.
JASPER, Ind.— Kimball International veteran Dave Scheu has been named general manager of case goods sales and marketing division Kimball Home, replacing Robert Cribbs, who left the company in December to join Jasper Cabinet. Scheu, who also serves as general manager of Kimball's store fixtures division, has held a variety of posts in finance and sales and marketing since joining the com...

Opinion Today

You really want $70M for joint consumer ads?!?
It's a fragmented industry of some 1,400 manufacturers, many small or medium-sized. Imports are eating away market share, and factory employment has fallen some 11% in the past five years. After coming into 2001 with high hopes, last year saw a disappointing 1.5% drop in sales. Sound familiar? It should, particularly since the industry in question is furniture.
My adventures down a no-interest brick road
Ever think about the differences between what we want and what we actually need? They can be, and usually are, worlds apart. In retail, regardless of the category, it seems the merchant that best creates the want is the one that captures the sale. The most recent proof of this premise was provided by the auto industry, which borrowed a page from furniture retailers and helped rewrite their ow...
Kmart: Self-fulfilling prophecies
I suppose it had to happen. Kmart's Chapter 11 bankruptcy protection filing probably became all but inevitable once the rumor mill among other retailers and the supply chain went into overdrive over the last few weeks. Then there was the almost-instantaneous pickup by the rest of Wall Street and the national news media of only one part of one analyst's appraisal of the Kmart situation earlier ...

People Today

Davis given Badcock community award
MULBERRY, Fla.—Coleman Davis, owner of four Badcock Home Furnishings Centers in central Florida, has been awarded the Wogan S. Badcock Jr. Lifetime Community Award. The award, named after the Southeast retail chain's late chairman and chief executive officer, is presented annually to a store owner for outstanding community service.
Houston named partner at Everest consultants
LAWRENCEVILLE, Ga.—Lee Houston has been named a partner at Everest Group International, a consulting company that serves the furniture industry. He has 30 years experience in the industry, including posts at Vaughan Furniture, Gravely, Ladd and Chromcraft-Revington, where he was executive vice president of the Cochrane division.
People on the Move
People on the Move
• EXECUTIVES Decorize SPRINGFIELD, Mo. —Alex Budzinksy has been named executive vice president of Decorize, a global direct source of home accents for retailers large and small. Budzinsky has 20 years experience in corporate finance and investment banking with such companies as Citibank, Dean Witter and Merrill Lynch.

Special Report

Bedding Report
Luxury bedding speaks volumes to retailers and their customers
HIGH POINT— If a picture is worth a thousand words, then pictures of luxury beds are worth thousands of dollars. That's certainly the case with the roundup of high-end sleep sets pictured here. Each of these beds brings in thousands of dollars to the retailers who sell them. These are big-ticket, high-profit transactions.
Product Report
Youth furniture goes beyond basic bed, dresser
HIGH POINT— Juvenile furniture makers are expanding their offerings beyond the typical bed and dresser in the hopes of gaining market share. The furniture industry is suffering from a U.S. recession, but some youth furniture providers are increasing their sales by offering occasional and accent pieces that catch the eyes of both children and parents.
Market Report
San Fran wood activity sparks hope
SAN FRANCISCO— The first major U.S. market of the new year left case goods exhibitors pleased with order-writing activity that they hope sets the tone for the rest of 2002. Many introductions in San Francisco, a longtime must-see for retailers carrying oak furniture, featured alder. And as case goods importers continue their efforts to simplify the logistics of getting product to retailer...
Market Report
Upholstery focuses on details, nostalgia
SAN FRANCISCO— A return to the past and attention to detail were driving elements in stationary upholstery introductions at the winter market here. Manufacturers were ready to fill the needs of consumers still nervous from Sept. 11 with nostalgic styles and fabrics. Not related but in plentiful supply from California manufacturers were enough wood and nail accents to keep a case goods fac...
Market Report
Leather producers hope SF sets positive trend for year
SAN FRANCISCO— Invigorated by the healthy tenor of the market, leather upholstery manufacturers here were hoping for a business uptick this year. In addition to established exhibitors, the West Coast show welcomed several newcomers in the category. One was Italian-based leather producer Gamma, showing in San Francisco for the first time.
Market Report
Home entertainment dances to new beats
SAN FRANCISCO— Exhibitors at the market here rolled out new looks and features to spur business for their home entertainment lines, and much the same held true at the Toronto winter market. Klaussner introduced its biggest wall unit ever, Powell offered its first entertainment armoire, and South Shore added lots of accessory storage.
Market Report
Eager buyers spur brisk activity in SOHO
SAN FRANCISCO — SOHO activity was brisk at the winter market as retailers shopped for new goods to keep pace with the uptick in consumer demand that started late in the fourth quarter. With inventories pared to the bone and business showing signs of a turnaround, small office/home office retailers came in ready to place orders, exhibitors said.
Market Report
Motion moving to quickening business beat
SAN FRANCISCO— Motion furniture producers aren't quite ready to declare victory over the recession, but an uptick in business the past two months has lifted their spirits and kept factories busier than expected. Producers showing at the winter furniture market here said November and December were especially strong, and most said January, traditionally not a banner month, would turn in a g...
Market Report
Youth sports lots of solid wood
SAN FRANCISCO— Solid-wood groups turned up in greater numbers in youth furniture showrooms at the winter market here. Some of the attributes of solid-wood construction have a particular appeal for parents, exhibitors said. "We're thick, safe, heavy," said Bob Woodyard, president of Bedtime, an importer of solid oak and birch youth groups.
Market Report
Kathy Ireland readying leather, fabric upholstery lines
SAN FRANCISCO— Standard Furniture will sell imported leather upholstery under its new Kathy Ireland licensing agreement, which also will include case goods and occasional. And fabric-covered upholstery also is in the works under the Ireland brand. The mid-priced leather seating, to be made in China, will be Standard's first foray into upholstery, said Don Mecke, vice president of sales an...
Market Report
Women want more information in post-9/11 world
SAN FRANCISCO— The good news for the furniture industry is that emotional shock waves in the wake of the Sept. 11 attacks have consumers concentrating more than ever on their homes. The industry's challenge is to refine its marketing approach to cater to the thought process of the women who make most home furnishings-related purchase decisions.
Market Report
WHFA honors Dave Lane
SAN FRANCISCO— The Western Home Furnishings Assn. honored its retiring executive director, Dave Lane, with a benefit fundraiser during the San Francisco Winter Market. The event at the Mark Hopkins Inter-Continental Hotel, along with additional donations, raised $9,000 for the Parkinson's Institute in Sunnyvale, Calif.
Market Report
San Fran marketgoers know how to network
SAN FRANCISCO— In keeping with tradition, retailers, manufacturers, sales representatives and guests packed the San Francisco Mart's Mart 1 ninth-floor ballroom here to help kick off the January furniture market. The networking event, held on the evening of the show's opening day, allowed attendees to mix, mingle and enjoy a blend of savory food, beverages and conversation.

Up Front

Rowe will consolidate its two retail businesses
MCLEAN, Va.— The Rowe Cos. said last week it will consolidate its Home Elements and Storehouse retail chains into one Storehouse division this year, merging the best of both concepts while significantly cutting operating costs. The 61-store group will be based in Atlanta and led by Caroline Hipple, current Storehouse president.
High-end concept opens in Tulsa
TULSA, Okla.— A homebuilder and developer has opened a large, upscale home furnishings store in a former rodeo arena here, riding with a one-stop-shopping, take-with retail approach. The International is using about 70,000 square feet of a 110,000-square-foot facility to display its mix of upscale furniture, antiques, home accents, area rugs, garden décor, cabinetry and other goods,...
Klaussner shifts product managers
ASHEBORO, N.C.— Klaussner Furniture has reorganized its product management and merchandising team, promoting several key people and creating new positions. Jay Foscue has been named vice president of motion merchandising, a new position. He was previously product manager for the Realistic product line, occasional chairs and sleep sofa products.
3 Havertys promotions linked to distribution improvements
ATLANTA— Steve Burdette has been promoted to vice president of operations for Havertys in a move related to the retailer's work to improve the efficiency of its distribution system. Also promoted to new posts at the Atlanta-based Top 100 store are Robert Kirchmeyer, named director of merchandising, and David Koehler, named general manager of the retailer's planned Washington, D.
Hyundai signs with Vegas
RANCHO DOMINGUEZ, Calif.— Case goods and occasional importer Hyundai Furniture Inds. said it has signed a lease for a 7,500-square-foot showroom at the World Market Center in Las Vegas. The company also has chosen not to exhibit at the April High Point market, concentrating instead on business in the West and Midwest.
New pres. at Comfort Designs
KINGSTON, Pa.— Colin Keefer has joined John Graham as a partner in Comfort Designs, a maker of contemporary upholstered and metal furniture here founded by Graham in 1972. Graham remains executive vice president. Keefer will be the company's president. He brings over 25 years industry experience, and for the past 10 years was president of Leggettwood, a division of supplier Leggett &...
Shermag elects chairman
SHERBROOKE, Quebec— Claude Pichette has been elected chairman of Shermag, Canada's third-largest residential furniture manufacturer, succeeding the recently retired Serge Racine. Pichette has been on Shermag's board since 1989. He holds several posts in Quebec's public and quasi-public sectors and has a financial and academic background.
Harris in new Sandberg post
LOS ANGELES— Wayne Harris has been named to the newly created post of national accounts manager at Sandberg Furniture, a producer of promotional to midrange case goods. He will be responsible for the development of new accounts, primarily major accounts and distributors east of the Mississippi, the company said.
Noonoo promotes Grasse
SECAUCUS, N.J.— David Grasse has been named president of Noonoo Rug Co., succeeding Gene Newman, who becomes chairman of the rug importer. Grasse, known as a leading designer of high-style rugs, joined the company 15 years ago and has served in sales, marketing and product development posts. Most recently, he was executive vice president.
Durham's Orville Mead dies
DURHAM, Ontario— Canadian furniture industry stalwart Orville Mead, former chairman of Durham Furniture, has died after a long battle with cancer. He was 63. Mead, who retired from the company on Jan. 1, was with Durham for almost 43 years. He joined the company in 1959 and was named production manager in 1965 and plant manager three years later.
Colalillo buy creates Simmons Uph. Canada
TORONTO— John Colalillo, president of Superstyle Furniture, has acquired the sofa-sleeper line marketed by Simmons Canada and formed a new company called Simmons Upholstery Canada. Superstyle and its sister companies, Trendline and Braemore Convertibles, have been manufacturing the line for Simmons Canada for the past few years.
Outstanding rug designs saluted
ATLANTA— The rug industry honored outstanding designs in all price categories with America's Magnificent Carpets Awards during the winter market here. The judges, comprised of winners of last summer's Retailer of the Year awards, made decisions without knowing the vendor's name. In addition, every retailer who visited the Gallery of Magnificent Carpets could vote for the People's Choice A...
Service Merchandise hires specialists for GOB sales
NASHVILLE, Tenn.— Service Merchandise has hired a trio of liquidations specialists to begin going-out-of-business sales at more than 200 of its stores, warehouses and other locations. U.S. Bankruptcy Court for the Middle District of Tennessee authorized the agreement between Service Merchandise and a joint venture composed of SB Capital Group, Gordon Bros.

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