Furniture|Today 01/13/2003 Table of Contents

Table of Contents

Furniture|Today -- 01/13/2003

Bedding Today

Sealy facing $50M hit but will strike back hard
Ready for some shocking news? I checked with the powers-that-be at industry sales leader Sealy and asked what they plan to do to recover the business they'll be losing at Mattress Discounters and The Mattress Firm. The response: We're going to kiss that business goodbye. We don't mind losing millions of dollars of business.

Business Today

Corrections & Amplifications
A footnote to a table on Bestway's first-quarter earnings, on page 31 of the Dec. 23 issue of Furniture/Today, overstated the amount of a pretax loss on the sale of property and equipment. The correct amount is $786.December retail sales
Bombay up, Havertys down in December
Fort Worth, Texas— Retail sales ran hot and cold in December, with same-store sales climbing 18% at The Bombay Company while Havertys posted a decline. Pier 1 Imports also reported an increase, although not as sharp as Bombay's. Fort Worth-based Bombay said that increased marketing, better and more efficient in-store execution, sharper price points on key items and accelerated clearance a...
Bassett turns profit for year
Bassett, Va.— Full-line manufacturer and retailer Bassett Furniture Inds. said sales in its fourth quarter rose 1.7% to $79.4 million as sales for the year ended Nov. 30 climbed 5.8% to $325.5 million. Net income was $1.7 million in the fourth quarter versus a loss of $1.5 million in the prior year's period.
DMI posts 2.9% sales gain in 1Q
Louisville, Ky.— Case goods manufacturer and importer DMI Furniture reported sales of $26 million in its 2003 first fiscal quarter, a 2.9% increase over the same period last year. Net income for the quarter ended Nov. 30 jumped nearly 30% over the prior quarter to $424,000. Excluding $1.6 million in first-quarter 2002 sales from DMI's discontinued Dolly Madison division, revenues were up 9.

News

Decorize adds three senior execs
Springfield, Mo.— Decorize, a high-tech source of home furnishings products for retailers whose brands are Faith Walk, Guildmaster and decorize.com, has added three senior executives in the United States, four managers in Asia and a board member. The executives are Chris Cleckler as vice president of product development, Cindy Emerman as product director and Steve Nurnberg as general oper...
Cebu furniture makers seek government help
Cebu City, The Philippines— Furniture manufacturers here are asking the Philippine government for help in competing with the Chinese. The Cebu Furniture Industry Foundation, which represents the manufacturers, wants aid including tax incentives for capital improvements and a government-supported facility to buy and warehouse raw materials in bulk.
Hooker closes Bradington-Young purchase
Martinsville, Va.— Case goods manufacturer and importer Hooker Furniture has closed its acquisition of leather upholstery producer Bradington-Young. The deal, announced in October, is for $24.5 million in cash less assumed debt, subject to a net working capital adjustment. In fiscal 2002, the companies had combined sales of almost $300 million.
H.P. market renews transportation contract
High Point— The International Home Furnishings Market Authority has renewed its contract with McLaurin Parking Co. to run the market's transportation system at the April and October markets. The Raleigh, N.C.-based company will continue to operate the market's entire shuttle system, which includes routes from scores of area hotels, shuttles to satellite parking lots in High Point, shuttle...
Site airing complaints against Kane's shut down
Pinellas Park, Fla.— Saying it had no other options, Kane's Furniture has filed a lawsuit against a Tampa man who set up a Web site for consumer complaints against the 14-store chain. The retailer won a temporary court injunction last month shutting down the site, www.kanesfurniture.net, which had passed along hundreds of consumer complaints against Kane's to the Florida attorney general'...
Manley gets Progressive operations post
Archbold, Ohio— Sauder Woodworking has promoted Paul Manley to the newly created position of senior vice president of operations at its Progressive Furniture subsidiary. Manley, who reports to Progressive Chairman Pete Pilliod, joined Sauder in 1999 and has been director of inter-company synergies for Sauder and Progressive since mid-2001, when ready-to-assemble furniture maker Sauder acq...
Rent-Way credit rating slips
Erie, Pa.— Rent-to-own retailer Rent-Way said it is making progress toward refinancing its debt, despite a credit downgrade last week by Standard & Poor's. The rating agency cut the company's credit and bank loan ratings to CCC from CCC+, citing "concern about Rent-Way's ability to refinance its bank loan that matures in December 2003.
Rose to receive SFM Gold Pass award
San Francisco— The San Francisco Mart has named Cherie Rose of The Rose Collection in Los Gatos, Calif., as its Winter Market 2003 Gold Pass recipient. The Gold Pass is awarded to Western retailers who have distinguished themselves by their industry participation, the high caliber of their stores and their ongoing support of the San Francisco Mart.
Thomasville sues Ashley over Grand Geneva design
Thomasville, N.C.— Manufacturer Thomasville Furniture Inds. has filed a lawsuit against Ashley Furniture Inds., alleging that Ashley's Grand Geneva group is a knockoff of Thomasville's British Gentry collection. The suit, filed in North Carolina federal court, claims patent infringement, trade dress infringement and unfair competition.
FBI's import organization changes name
St. Louis— Furniture Brands International said its import organization, formerly Outlook International, has changed its name to Furniture Brands Import Service. The service, with more than 150 employees, coordinates and oversees production and quality control for all FBI product made in Far East factories.
Corrections & Amplifications
The Retailer Resources section of Furniture/Today's 2003 Retail Planning Guide, published Dec. 30, omitted a company: Great American Group One Parkway North, #520 Deerfield, Ill. 60015 1-800-85-GREAT www.greatamerican.com In addition, the listing for Julius M. Feinblum Real Estate was inaccurate. The correct listing is: Julius M.
Davis expands in Tupelo, adds leather
Tupelo, Miss.— Davis Furniture Inds. is quadrupling its space at the Tupelo Furniture Market to showcase its imported case goods line and a new leather collection. The Davis space will go from 5,700 square feet to 25,000 square feet in Building E of the Mississippi complex. The Okolona, Miss.-based resource will take over much of that building, and several exhibitors will move to other lo...
King Koil reorganizes
Hinsdale, Ill.— King Koil President Larry McKay has added international duties to his job description in a reorganization at the Top 10 bedding company. The move follows the recent retirement of longtime executive Ernie Friedman, who had been heading the international licensing business. Friedman, a former president of the International Sleep Products Assn.
Carolinas Expo set for Feb.
Greensboro, N.C.— The woodworking industry will gather here Feb. 20-21 for the 2003 Carolinas Industrial Woodworking Expo. This year's show includes a roundtable discussion focusing on the furniture industry and a variety of educational sessions. "Our goal with the 2003 Carolinas Expo is to set a new standard," said Keith Eidson, president of show organizer TSI.
Story overstates Ikea founder's doubts
Conshohocken, Pa.— A recent new stories suggesting Ikea's founder is worried about rapid expansion appears to have misinterpreted and are no reflection on the aggressive growth plans here, according to the retailer's North American executives. The 76-year-old Ingvar Kamprad "has become increasingly concerned about having to close stores during an economic downturn," said a story carried b...
Obituaries
Obituaries
AWFS disputes wood dust, cancer linkage
Commerce, Calif.— The Assn. of Woodworking & Furnishings Suppliers is disputing the listing of wood dust as a "known human carcinogen" in the recently published 10th edition of "Report on Carcinogens" from the U.S. Department of Health and Human Services. The association, along with the American Forest & Paper Assn.
Current joins Loomcraft
Greensboro, N.C.— Greg Current has joined Loomcraft Textiles as executive vice president of marketing. A 21-year textiles industry veteran who formerly was vice president of marketing for Oakhurst Textiles, he will be involved in the marketing and sales of Loomcraft's home decorative and automotive fabrics.
OWA readies merchandising programs
Dalton, Ga.— Oriental Weavers of America will introduce a series of merchandising programs during the International Rug Market, Jan. 17–20 in Atlanta. OWA's new Area Rug Gallery is aimed at independent furniture and floor covering retailers that do not have large hanging-rack rug departments.
Snow couldn't snuff Cotton Inc. celebration
New York— The snow storm that blanketed the East Coast in December didn't deter some 200-plus guests from attending the Cotton Inc. "Celebration of American Life" at the Metropolitan Museum of Art here. Cotton Inc. executives expected about 320 guests, but when the snow flew they figured about 170 would attend.
Davis to head Great American Group N.Y. office
Woodland Hills, Calif.— Great American Group has opened a full-service office in New York City. It will be headed by William G. Davis, newly appointed national marketing director. Davis has more than 22 years experience in asset-based and structured finance business development. He most recently was a senior marketing executive in Bank of America's commercial finance division.
Tom Seely wins W.Va. safety award
Berkeley Springs, W.Va.— Case goods producer Tom Seely Furniture has received a West Virginia Governor's Safety Award, presented annually to businesses and industries in the state to recognize outstanding safety achievement and performance in the workplace. Seely won in the category of intermediate-sized manufacturers.
Bedding Benchmarks
Bedding coverage expands
High Point— Welcome to the expanding world of bedding coverage in your favorite weekly business newspaper. This new editorial feature will become a regular part of our bedding coverage this year. We are calling it Bedding Benchmarks because it will cover a variety of notable news and feature items.
Bedding Benchmarks
Arizona sleep shop hits new high in price
Scottsdale, Ariz.— Bedroom Eyes, a high-end bedding retailer based here, is taking bedding price points to a new height. Would you believe $20,000? That's the price of a Vi-Spring Magnificence sleep set, hand-crafted and sold exclusively in North America at Bedroom Eyes. Roger Magowitz, the retailer's president, expects the bed to sell well.
Bedding Benchmarks
Hypnos brings royal line to U.S.
Paterson, N.J.— Vi-Spring isn't the only luxury British bedding line making waves in the United States. Hypnos, another British bedding brand, is retailing in the United States after its launch at the International Home Furnishings Market last fall. The Hypnos line, which has a solid pedigree of expert craftsmanship in the United Kingdom, is produced in the United States under a licensing...
Bedding Benchmarks
Curnutt heads international sales at Hickory Springs
Hickory, N.C.— Hickory Springs Manufacturing Co. has promoted J. P. Curnutt to international sales director. Curnutt began his career with Hickory Springs in 1970 at the company's Fort Smith, Ark., sales office, and later worked at the company's Hattiesburg, Miss., location. He left Hickory Springs in 1982 to start his own business, then rejoined the company in 1999 as regional sales mana...
Laslo to design line for Ferguson Copeland
New York— Larry Laslo will design a furniture collection for Ferguson Copeland to be launched at High Point in April, marking the high-end traditional furniture source's first move into contemporary. The collection of about 50 pieces will include dining room, living room, bedroom, occasional and entertainment pieces with an emphasis on case goods.
Leather Italia-USA readies entry-level line for Tupelo
Wilmington, N.C.— Leather Italia-USA will debut at the February Tupelo market an opening-price-point leather upholstery line called the Santeramo Collection. The six 92-inch contemporary, transitional and exposed-wood frames will retail from $799 to $999, said Michael Campbell, president and chief executive officer.
Cunning leaving NTC position
Wilmington, Del.— Joe Cunning plans to retire as executive director of the National Textile Center's University Research Consortium. He will continue in the post until it is filled, and will remain a consultant to the NTC. During his tenure, NTC grew from four to eight members and increased its annual budget from $7 million to $10 million, said Fred Cook, NTC board chairman.
NTC sets forum for Feb. 16–18
Wilmington, Del.— The National Textile Center will hold its 11th annual forum Feb. 16–18 at the Hilton Head Marriott Beach & Golf Resort in Hilton Head, S.C. The event will bring industry business leaders together with academics and researchers, providing news on leading-edge technologies and presentations on upcoming developments and research projects.
New design mag targets West
Manitou Springs, Colo.— A new magazine called Western Interiors and Design has been launched to address architecture and interior design interests of the western United States. "These 14 states make up the fastest-growing region in the country, and it's the number one market in terms of new housing, in terms of consumer spending on shelter and home furnishings and in terms of overall cons...
Tri-State HFA salutes Neff, Epperson
Ambler, Pa.— Jerry Epperson was honored as Tri-State Home Furnishings Assn. Person of the Year at the recent TSHFA meeting in Conshohocken, Pa. Named to the Tri-State HFA Hall of Fame was Jerome J. Neff, who has been in the home furnishings industry for 55 years and active in the association for almost as long.
Drexel adds two retailers to store program
High Point— Two more retailers have signed up for Drexel Heritage's store program, bringing the scheduled openings to a dozen for this year. Willis Wayside in Virginia Beach, Va., and Saxon-Clark Furniture and Design outside Orlando, Fla., have both committed to building and opening Drexel Heritage Home Inspirations stores this year.
AFMA details standards on Web site
High Point— A new Web page featuring furniture standards and specifications is online at the American Furniture Manufacturers Assn. member Web site, www.afma4u.org. AFMA teamed with the Furniture Manufacturing and Management Center at North Carolina State University to launch the page. "AFMA saw the need for a repository of standards where our members could go to one location and find the...
Fabric show wins applause
High Point— Fabric and leather producers were happy with the customers they saw and the business they did at an upbeat Winter Showtime 2003 here last week. Traffic seemed off a bit, but exhibitors weren't surprised since they had done extra pre-selling in December to help their customers get ready for the earlier-than-usual spring furniture market.
Pa. store launches Ikea's growth surge
Conshohocken, Pa.— Ikea will open its new U.S. flagship store in this Philadelphia suburb this Wednesday, launching an aggressive North American expansion strategy and a new look with a much broader home furnishings assortment. The 325,000-square-foot store replaces Ikea's first U.S. store, a 160,000-square-foot unit about 10 minutes away in Plymouth Meeting.
Michael Graves designing Glen Eden rugs
Calhoun, Ga.— Architect and designer Michael Graves is developing a transitionally styled rug line for Glen Eden Wool Carpets. The hand-tufted wool rugs will be introduced at the Surfaces Market in Las Vegas, Jan. 29–31. The collection of 12 designs in 36 colors will retail for about $40 to $50 per square foot, said Eric Scharff, vice president of sales and marketing.
Indian rug exhibition set for Atlanta market
Atlanta— Images of India, an exhibition of hand-woven rugs inspired by Indian art and culture, will be on display during the National Oriental Rug Show here in January. NORS is part of the International Rug Market held Jan. 17–19 at AmericasMart Atlanta. A ribbon-cutting ceremony will officially open the exhibition on Friday, Jan.

Opinion Today

We work in an industry that really does care
When I was a child, every Christmas story ended with the same question: So, what did you get? Now, at this point in my life, the best Christmas stories focus not on what was received, but on what someone was able to give to another person. Recently, a letter came across my desk that deeply touched my heart because it chronicled how caring people in our business reached out to help someone durin...
Economic forecasting: Why we're always wrong
Few organizations have an annual meeting like the American Furniture Manufacturers Assn. It's always well done and extremely professional. Then there are the members. While they compete daily with vigor, these individuals are often close friends who may have grown up together, living in the same communities and working together on industry or charitable committees.
Showtime: Whines of the times
Well, the latest edition of Showtime was one of the more interesting events in the fabric market's 10-year run. First, there was the timing displacement. Not just for the folks in furnitureland, who are having perhaps the earliest High Point market in memory, but for the folks in the home fashions world, who are gearing up for a market that precedes furniture in March.

People Today

Liebenow on trade advisory panel
Washington— Larry Liebenow, president and chief executive officer of Quaker Fabric, has been named a member of the federal Advisory Committee for Trade Policy and Negotiations. The 32 members of the committee will serve for a two-year term. The group will advise the U.S. Trade Representative on matters including objectives, bargaining positions, and implementation of trade agreements.
People on the Move
People on the Move
Honors Hammary Lenoir, N.C. — Hammary Furniture has honored its top marketing representatives. Salesman of the Year is Al Hill, who covers northern Florida. Bob Lanzner was honored with the President's Cup. He handles the Southern California territory. Salesmen honored for achieving over $1 million in sales were Martin Benson, Jay Berger, Bill Bohlken, Frank Caldwell, Ron Carson, Bill Cla...

Special Report

2003 forecast: Slower growth ahead for economy, industry
High Point— Last year was no barnburner for the furniture industry, and growth will be slower in 2003 and 2004, according to a panel of analysts and economists. Furniture/Today's consensus forecast for the industry calls for gains in the low single digits in the coming two years, barring some unforeseen calamity.
Regional market introductions
• All prices retail • SF M = San Francisco Mart • MN IMS = Minneapolis International Market Square A-America SF M2-821 Accent Furniture SF M1-841 Adding the Olympus Collection bedroom to its Trend Furniture import division, featuring: Aico SF M1-838 Additions to: Also, a new painted finish, Silver Snow, for Monte Carlo bedroom, dining and occasional.
Rug Report
Rugs go mainstream as fashion accents
Atlanta— Rugs have become fashion accents, a concept that up-ends the old notion that rugs are mostly investments. In this new era, color and design trends hurtle through the once-stodgy industry with a speed that is both dizzying and exhilarating. The change in fashion tempo is reflected in the industry's pricing structure.
Product Trends
Rug introductions
Showrooms listed for Atlanta International Area Rug Market, AmericasMart, Atlanta. All prices are suggested retail for approximate 6′ x 9′, except where noted. AMS Imports 6E5 Guerrero Inca is a new design from the Ayacucho collection of area rugs hand-woven in Peru. Available in custom sizes and colors.
Market Report
Positive attitudes evident at Showtime
High Point— Despite the time squeeze caused by an early April High Point market, fabric suppliers exhibiting at Showtime here last week experienced strong order-writing and expect the coming year to be stable, if not good. "It's such a narrow time frame to market," said SRA Fabrics' Shelly Rosenberg of this year's April furniture market, set to open officially April 3 and unofficially in ...
Market Report
What to do about design piracy
High Point— Copyright infringement, counterfeiting, design piracy, intellectual property theft, knockoffs — whatever you call it, it has the potential to snuff out what remains of the U.S. textile industry, according to a panel of experts who participated in an industry roundtable at Showtime.
Market Report
Cotton Inc. sees more texture, softer color palette ahead
High Point— A renewed emphasis on texture, coupled with a focus on a softer color palette, should headline fabric introductions during the next two years, executives of Cotton Inc. predict. At a seminar for buyers at Showtime here, officials of the trade group said they believe consumers will be drawn to such fabrics because they add a feeling of comfort and security.
Market Report
Leather arena looks for uptick
High Point— In the midst of current economic woes, leather purveyors are looking to the latter part of the year for relief, when they hope retail sales will turn up. And while keeping an eye on the ongoing Italy-Asia tug-of-war, leather upholstery makers shopping Showtime here were scouting hides from Argentina and Brazil.
Market Report
No cover charge here
High Point— Fabric buyers and sellers relaxed at the String & Splinter Club on opening night of Winter Showtime 2003. Party sponsors included the International Textile Market Assn.'s Educational Foundation sponsors — Cotton Inc., Pantone, Solutia and Unifi.

Supplement

SoHo Today
Firstline finds growth in furniture
Lynnwood, Wash.— A nice balance of small office and home office keeps Firstline Office Furniture growing and headed in the right direction. An office products supplier that has slowly devoted more and more of its showroom to office furniture, Firstline continues to service its core business customers, but the entire 7,500-square-foot showroom, situated in a superior retail location adjace...
SoHo Today
The little Internet dealer that could
Tukwilla, Wash.— It turns out the Internet works as a vehicle for selling SOHO furniture after all, although perhaps not on the grand scale once suggested by several e-tail pioneers during the giddy days of the late 1990s. Roger Hockett, president and founder of WorkSpaces, a producer and seller of ergonomic workstations, is one of those pioneers, but he never predicted that his small com...
SoHo Today
Opportunity knocks
If we give credit where it's due, then we should acknowledge the ready-to-assemble majors for recognizing that entertainment and office furniture go together like peas and carrots. Entertainment and office have been the two main bulwarks that have driven and sustained the remarkable growth of flat-pack furniture during the last 25 years.
SoHo Today
Costco explores SOHO
Issaquah, Wash.— Costco Warehouse is testing office furniture and systems, including special order and custom installations, at four of its membership-warehouse locations. At the recent opening of the first Costco Home store in Kirkland, Wash., furniture for the home office and the small office were both abundantly represented.
SoHo Today
RTA maker Carina expands factory by 50% to improve through-put
Toronto— Carina has completed expansion of its factory here, a 50% increase in production space for the company's RTA furniture lines. The expanded plant, which is only two years old, features about 350,000 square feet for production and storage, and before long, Carina intends to move warehousing to another location.
SoHo Today
SOHO vets develop Turbo desktop line
Suffern, N.Y.— SOHO veterans Eric Shupack and Jonathan Rosen have developed a new line of desktop accessories that will be marketed and sold as a single SKU so that it's convenient for SOHO furniture retailers. To be called Turbo Pack, the concept will be supported by point-of-purchase signage and an easily maintained display kiosk.
SoHo Today
Buying teams change at 2 superstores
High Point— The furniture merchandising teams at two of the office superstores have changed. The big change has occurred at OfficeMax, where Richard Diamond has been replaced by Brent Hilton. Diamond had been in charge of the OfficeMax furniture program for six years, including the SOHO furniture boom of 1998–2000.
SoHo Today
Hooker ships PGA Tour collection
Martinsville, Va.— Hooker Furniture's new case goods collection licensed by the PGA Tour started shipping this month. Called Avenel, the collection includes a dramatic home office presentation. A relaxed traditional style in maple solids and maple and cherry veneers, Avenel was developed after Hooker conducted consumer research to determine the best way to incorporate a golf theme into fu...
SoHo Today
Robb & Stucky plans PGA promotion
Scottsdale, Ariz.— Robb & Stucky will soon know whether a golf tournament is a good place to market and sell home office furniture. Of course, it's not just any golf tournament, and it's not just any home office furniture. The event is the Phoenix Open, a highlight of the winter season in this Sunbelt market, and the furniture is Hooker Furniture's Avenel, a home office collection lic...
SoHo Today
Office superstores still waiting for solid SOHO rebound
High Point— Although there have been some encouraging reports in recent months, the office superstores — the leading channel of distribution for SOHO furniture — still have not developed the forward momentum that would constitute a rally. Perhaps the best recent news came from OfficeMax, which announced that its holiday selling season, comprised of the 26 days between Thanksgi...
SoHo Today
Office Depot spotlights furniture in Big Book
Delray Beach, Fla.— Offfice Depot's new Big Book is out, the first of the 2003 office superstore catalogs to hit the street. With 190 pages, SOHO furniture accounts for the largest section in the 1,064-page catalog, which covers the gamut — from promotional home office to midmarket systems furniture.

Up Front

Mexico's Segusino shuts doors, to liquidate
Puebla, Mexico— Low-cost Asian competition and inability to adapt to a global market have claimed another proud name in North American case goods. Segusino, once Mexico's largest furniture manufacturer, has closed its doors and will liquidate. More than 300 workers returned this month from Christmas vacation to find the plant here stripped of equipment and raw materials, local newspapers ...
Vegas work to start in March
Las Vegas— World Market Center officials have scheduled the groundbreaking for the first-phase, 1.3 million-square-foot market building for March 21. They also plan to release a construction timeline, the names of more tenants and the timing of the next two buildings at that time. A tenant and buyer reception and board of advisors meeting will be held March 20.
6 AFMA employees resign in cutback
High Point— Six employees of the American Furniture Manufacturers Assn. have resigned, apparent casualties of a budget move. "The (AFMA) board elected to terminate our pension plan," said Andy Counts, AFMA's executive director. "As a result, several of our senior staff were going to be significantly impacted.
Women to bare it in SF
San Francisco— Members of a women's group plan a nude protest march down Market Street near the San Francisco Mart on the Saturday of furniture market, Jan. 18. According to newspaper reports, the group called Unreasonable Women Baring Witness will protest the possibility of a U.S.-led war on Iraq.
Harvey joins SofaTrend
San Diego— Joan Harvey has joined SofaTrend as national sales manager of the six-month-old fabric upholstery division of LeatherTrend. Harvey, who most recently held sales positions with Jonathan Louis and Chateau d'Ax, is charged with developing a sales program for SofaTrend. She reports to Mike Larkey, president of SofaTrend and also a veteran of Jonathan Louis.
Stores get boost during Canada's Boxing Week
Ottawa— Canadian furniture retailers say Boxing Week, a key selling period in the days after Christmas, gave them a much-needed sales boost as they entered the new year. "We were very busy. In fact, everyone in town was very busy," said Doug MacDonnell, president of Ormes Furniture and Startop Furniture Plus in Ottawa.

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