Archive for May 4th, 2006
Lacquer Craft Manufacturing Co. Ltd. says it’s keeping the current facilities and workforce of the Taylorsville-based company.
Taylorsville, NC — A Chinese furniture manufacturer has reversed a global trend and bought US upholstered-furniture maker Craftmaster Furniture.
Lacquer Craft Manufacturing Co. Ltd. said Tuesday it is buying Taylorsville-based Craftmaster. The purchase price for privately owned Craftmaster was not disclosed.
Lacquer Craft already owns Universal Furniture in High Point and Legacy Classic in Burlington.
The Craftmaster acquisition will round out Lacquer Craft’s upholstery offerings while providing the Craftmaster line with fabrics and parts from China, said Roy Calcagne, who Lacquer Craft named as Craftmaster’s president in addition to his job as senior vice president of Universal’s upholstery division.
“If anything, Craftmaster production will expand,” Calcagne said.
Lacquer Craft, founded in 1995, produces wood furnishings at plants in Dongguan and Shanghai, China, and distributed worldwide by Universal Furniture and Legacy Classic.
Craftmaster will keep its current manufacturing facilities and 425-employee work force in Taylorsville, as well as its sales force and showroom in High Point.
Associated Press/ Hickory Daily Record
Maila Rible , Web Producer
May 4th, 2006
— Furniture Today,
Shipments of domestic product down
DELPHI, Ind. (BUSINESS WIRE) — Chromcraft Revington said sales for the first quarter of $45,921,000 represented a 2.8% increase from $44,659,000 reported for the same period last year.
Shipments of occasional, dining room and upholstered furniture were higher as compared to the prior year period. The sales increase in these product categories for 2006 was partially offset by lower shipments of bedroom and commercial furniture. Shipments of domestically produced furniture for the three months ended April 1, 2006 were lower as compared to the prior year period.
Net earnings for the first quarter of 2006 were $1,129,000, or $.25 per share on a diluted basis. This compares to net earnings of $2,256,000, or $.53 per share on a diluted basis, for the same period last year.
First quarter earnings were primarily affected by a reduced domestic production level, which affected fixed cost absorption and manufacturing efficiencies, an unfavorable sales mix and higher manufacturing and selling related costs.
The company’s balance sheet at quarter end showed continued strengthening with available cash and no bank indebtedness. Effective January 1, 2006, the company adopted Statement of Financial Accounting Standards No.123 “Share-Based Payment.”
The adoption of the new accounting standard did not have a material impact on the company’s results of operations for the three months ended April 1, 2006.
Benjamin M. Anderson-Ray, chairman and CEO, said that the company continues to implement its hybrid strategy of U.S. furniture manufacturing combined with sourcing furniture components and finished goods. He said that shipments of domestically produced built-to-order products and imported finished goods grew significantly while shipments of other domestically produced furniture decreased in the first quarter as compared to the prior year. He commented that this reflects the company’s strategic transition towards an improved utilization of a global supply chain combined with the shift to value-added customized furniture. He indicated that the company is continuing to shift its product development and marketing to a more market-based focus on the needs of consumers and customers.
Anderson-Ray pointed out that this business model will involve a significant expansion of global sourcing activities, as well as a conversion of U.S. operations toward increased use of demand flow and mass customization techniques. Looking forward, he said that first quarter orders were slightly below the prior year period and that sales order backlog entering the second quarter was below the year ago level due, in part, to improved service levels.
Anderson-Ray also commented on the just concluded High Point Furniture Market stating, “At the April Furniture Show, more new furniture collections and programs were launched then ever achieved in the company’s history. Our Peters-Revington brand launched an entirely new consumer lifestyle based program with thirteen occasional furniture groups many of which include entertainment and modular wall units. The Chromcraft brand introduced fifteen new casual dining furniture groups, expansion of its built-to-order Colorcraft program and a new entry price point semi-custom program called Colormates.
“Our Cochrane brand successfully introduced a new concept of an integrated multi-category built-to-order program with dining room, living room and bedroom furniture groups in styles ranging from casual traditional to urban impressions. Our Sumter brand introduced five new solid wood bedroom and dining room furniture groups. And finally, our Silver brand launched ten new occasional table groups, nine new media furniture credenzas and two new leather upholstered furniture groups. Overall, we were very pleased with the market reaction to these introductions.”
May 4th, 2006
By: Furniture World Magazine
Thomasville Furniture Industries, a subsidiary of St. Louis, Missouri based Furniture Brands International, announced the closing of a case goods manufacturing facility located in Thomasville, North Carolina.
The affected facility, Plant D, is a 309,000 square foot case goods manufacturing facility and employs 278 people. This closing will entail the elimination of all salaried and hourly jobs and the plant will cease manufacturing operations by August 1, 2006.
Furniture Brands estimates the restructuring, asset impairment and severance charges associated with this closure will total approximately $4.0 million ($2.6 million net of income tax benefit), or 5 cents per diluted common share. Approximately $0.5 million of these charges will be taken in the second quarter of 2006 and the remainder, consisting of clean-up and asset impairment charges, will be taken when the plant is available for sale, likely the third quarter of the year.
Furniture Brands International is one of America’s largest residential furniture companies. The company produces, sources and markets its products under six of the best-known brand names in the industry - Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.
May 4th, 2006
By Jim Jordan
A Lexington furniture store has closed its doors after accepting thousands of dollars in payments for furniture that has not been delivered.
Norwalk, The Furniture Idea, in Hamburg Place was operated by Danny Hillard, president of Hillard Enterprises, who is a franchisee of the Norwalk Furniture Corp. in Norwalk, Ohio.
Hillard could not be reached for comment despite attempts over several days.
A notice on the store’s door says the business is ‘temporary closed.’ It provides a phone number that leads to an answering machine, but no explanation for the closing.
No bankruptcy filing had been made as of late yesterday in U.S. Bankruptcy Court in Lexington.
Also taped to the store’s front door is a note from Sherry Price, a customer who wanted other customers to contact her. Price said she has heard from about a dozen people who are owed money or furniture.
Price deposited about $1,400 with Norwalk for a sectional sofa and chair that was to be delivered in early March, but has not been, she said.
Businesses say they have lost even more.
The Racquet Club apartments paid $17,000 for furniture for its common areas that has not been delivered, said leasing manager Ellie Brown.
Jim Gerken, CEO of Norwalk Furniture Corp., said customers will not lose their money or the furniture they ordered. But he added that customers need to be be patient while Norwalk’s attorneys work on the case.
‘The unfortunate situation here is that the legal contract between the consumer and the store isn’t something we can interfere in, or have much effect on, until we get in touch with the franchisee and we enter into a legal agreement to take care of these people,’ Gerken said.
‘We are not going to abandon them,’ he said, ‘but we have to go through the legal steps required before we can take any action.’
‘All I can say is, we are over a 100-year-old company that hasn’t stayed in business that long by disappointing customers,’ Gerken added, ‘but I understand the frustrations they are feeling, and we are trying to resolve it as quickly as we can.’
Price said Norwalk customers have been unable to contact Hillard. She said the company’s Palumbo Drive warehouse, where some of their furniture might be stored, is also closed.
Price said she put her name on the store’s door so she could act as a clearinghouse for information about the situation.
‘I knew there had to be more people (who had losses), and I knew it would be better for all of us if we kind of united or banded together,’ she said. ‘Each person I have talked to has had a different piece of the puzzle.’
Hillard has been in the furniture business in the Lexington area since the late 1980s.
Hillard worked for Clark Equipment Co. in Georgetown until it closed and then went to the Kentucky Small Business Development Center to learn how to start up and manage a furniture store.
The result was Sofas and Such, which opened in 1987 in Georgetown. Hillard later sold that store to buy a Fine Designs Sofa Gallery franchise on Richmond Road in Lexington.
Fine Designs was owned by Norwalk Furniture, a family-owned Ohio company that was founded in 1902. The Richmond Road location adopted the Norwalk name and later moved to Hamburg.
Protect yourself
Before you order furniture or other expensive items from a retailer, the Better Business Bureau of Central and Eastern Kentucky recommends you call the BBB at 259-1008 to see whether other customers have filed complaints against the retailer.
If you proceed, make the deposit or the purchase with a credit card, said BBB spokeswoman Heather Clary.
Then if something goes wrong, you can dispute the charge within 60 or 90 days (depending on your credit card’s rules) and have the charge removed from your account.
If the retailer operates a franchise store, call the franchising company to see whether it can intervene on your behalf if there is a major problem with the retailer.
And if the retailer goes into bankruptcy, file a claim with the court so you can recover at least part of what you are owed if the debtor has any assets, Clary said.
Copyright © 2006 Lexington Herald-Leader, All Rights Reserved.
May 4th, 2006
By: Furniture World Magazine
CDS Solutions Group, an innovator in business and software solutions for the home furnishings industry, announced that the first Retail 6 system installation has been completed for Sofa Express and more! in Hattiesburg, Mississippi.
The Hattiesburg store is a 30,000 square foot, full-line furniture store owned and operated by first time home furnishings retailers Bill Fox and Jim Hicks. The store’s location is about 100 miles north of Gulfport and two hours northwest of New Orleans.
“This is our first deployment in a Sofa Express and more! licensee store,” reports CDS President and CEO Ren Baker. “And in the first few days of a soft-opening, we helped these great people ring nearly $20,000 in business. As they continue to get settled into their new store, we’ll be there to support them in utilizing the Retail 6 system to its fullest capacity.” Baker explains that CDS and Retail 6 are the recommended retail management solution for all Sofa Express & more! licensee stores. “We’re very excited about this wonderful opportunity and pleased with the real-time integration and technological advantages of vertical integration. The store concepts are built around providing customers with exactly what they want, custom made to their specifications, and delivered to their home quickly. With the data flows we’ve built, that promise is delivered in real-time, bringing customer service to a new level in the industry.” reports Baker.
Retail 6 is a 100% Windows® based system, which provides retailers with an easy to use, cost effective retail management solution. Developed with the most sophisticated technology, this bundled solution provides software, hardware, network, security, and total system support 24/7/365.
Retail 6 was designed exclusively for the home furnishings industry with leading-edge technology that allows a retailer to control all areas of the home furnishings retail environment. It is built to run on Microsoft ® Windows Server ®, Windows XP ® and Windows CE ®, and deployed exclusively on hardware from Dell ®, Cisco ®, Symbol ® and Nextel ®. CDS provided the Sofa Express & more! store with complete implementation and deployment services, including hardware, software, education, mentoring, and support.
While Fox and Hicks have worked together for nearly 27 years, this store is their first retail venture. “We have already received more support and consulting than we expected,” reports Jim Hicks. “We also received a lot of good advice—advice that we have used. We just see CDS as a partner that will help us build our business through this location and possibly future locations.”
Jim Hicks reports that CDS offered an opportunity to start up the business with a software and hardware package that’s “one of the best out there.” Partner Bill Fox explains that in their past business ventures they didn’t have a system of Retail 6’s caliber. “We’ve never had anything like this and we were in an industry where poor inventory control would just kill you. The furniture industry is no different. And the methods that Retail 6 brings to us in receiving inventory and tracking it — It’s state of the art.”
Baker explains that a key component of deployment is training the users so that the system is utilized correctly and completely. “Any time a person learns a new system or process, they want to feel confident that they have the skills they need to do it right the first time. And there’s two sides to building that confidence: classroom training and in-person mentoring. The classroom provides the basics, but it all comes together with mentoring — because people learn at their own pace, not the pace of the instructor.”
Pam Hicks, wife of co-owner Jim Hicks, who plays a key role in the store’s operations, reports that the staff finds the Retail 6 system very easy to use. “It’s very user friendly. I think when people are more comfortable with something and they don’t feel like they have to be so technical to understand it, it comes much easier. The main thing is, CDS made our people feel comfortable and confident that they could use the system, and made it simple and easy for anyone to adapt to. And I think that’ll be a part of our success.”
Baker reports that several other Retail 6 deployments are scheduled throughout the next few months including Kornmeyers in Baton Rouge, LA; Brashears Furniture Company, Inc. in Berryville, Arkansas; and Johnny Janosik, Inc., in Laurel, Delaware.
“I think the customers that have adopted Retail 6 are testament to the product’s design. Each of these outstanding companies are in growth mode – planning for their future - and they see how the Retail 6 design is perfectly suited to address their needs for technology both today and through the coming decade of change.”
CDS Solutions Group was founded in the early ‘80s with a single focus — to build the software solutions that enable good home furnishings retailers to become great companies. Hundreds of installations later, CDS continues that tradition, putting together new programs that propel retailers to the next level of performance.
Today, the company’s vision goes beyond simply building great software. The team at CDS has taken on the responsibility of leading the industry into the future. For additional information on CDS Solutions Group or its innovative new retail management system, Retail 6, call 888.309.8002 or visit www.cdsgroup.com.
May 4th, 2006
Named VP of national accounts
ATLANTA — Industry veteran Lynn Siemer has joined full-line importer Sunrise Home Furnishings in the newly created position of vice president of national accounts. He reports to Samantha Liu, president.
Siemer will be responsible for targeting sales to the industry’s Top 100 dealers and major buying groups.
He began his career in furniture in 1973 as a sales representative for Broyhill Inds. In 1987, he was promoted to regional sales manager, and over the next nine years held various management positions including vice president of the independent dealer program.
May 4th, 2006
Thomas Russell
Will launch line in October
HIGH POINT — High-end accent and occasional furniture specialist John-Richard expects to open a new factory in Vietnam by July and launch product made there by the High Point October market.
The 37,000-square-foot plant is the company’s first factory in Asia. It will be in Ho Chi Minh City, an area already well populated with furniture makers and suppliers.
The facility will start out with 50 to 60 employees and initially will produce samples for the October market. Its initial production capacity will be about 10 containers per month of accent and occasional furniture and mirrors made exclusively for John-Richard.
President Alan Galbraith did not give the cost of the project, but said the factory will be in an existing building that will be outfitted with furniture making and finishing equipment.
There also is land to expand, he said.
The company will continue to source from other facilities in Vietnam, including Rochdale Spears, a high-end case goods manufacturer also in the Ho Chi Minh City area. It also will continue to source product from China, India and Indonesia.
The Vietnam plant will allow the company to produce sophisticated finishes and also provide growth opportunities in new avenues such as the contract and hospitality industry, Galbraith said.
“There are whole avenues of business we are not even touching … that we will have the ability to do once we control the supply chain,” he said. “It will start out small, and we will add (production capabilities) as the volume increases.”
He said the company chose Vietnam largely because of its business-friendly environment. It also has a skilled and affordable labor force that makes it a good fit for the ar-tistic and detailed pieces in the John-Richard line.
“Vietnam is a very easy country to do business with,” Galbraith said. “There is an amazing skill set there for the various types of products we would be interested in.”
Chairman and CEO Alex Malouf said, “These are exciting times at John-Richard, and the new Vietnam operation is another step in our company’s strategic plan of expansion and positioning of John-Richard as the resource for luxury home furnishings.”
John-Richard’s High Point showroom is in space S-1 of 200 Steele. It is featuring some new pieces from Vietnam, including about 20 from the Rochdale Spears plant, Galbraith said.
May 4th, 2006
Even though the city faces the end of an era, city promoters don’t feel it’s the end of Thomasville being known as a furniture town.
Thomasville, NC — With the loss of nearly 300 jobs at Thomasville Furniture Industries, also comes the loss of a way of life.
Company leaders announced when they close Plant-D in Thomasville in July, it’ll mark the end of the company’s furniture manufacturing in that city.
People identify Thomasville with furniture. It’s called the “Chair City” for that reason.
Even though the city faces the end of an era, city promoters don’t feel it’s the end of Thomasville being known as a furniture town.
While the manufacturing leaves Thomasville the company’s headquaters will remain. Company leaders say they did not want to end manufactuing there, but they say competition over seas gave them no choice.
WFMY News 2
Jonathan Lowe , Web Producer
May 4th, 2006
By: Furniture World Magazine
Hundreds of children and their parents from five states in the region are expected to attend the final event of the Second Annual Bob’s Discount Furniture Children’s Scholarship Art Contest taking place this Saturday, May 6, 2006 at Wesleyan University, Middletown, CT, as the three finalists will be announced for their outstanding artwork that was submitted in this regional competition. Each finalist from one of the three age categories will be awarded a $5,000 scholarship from Bob’s Discount Furniture.
Hosted by Bob’s Discount Furniture television spokesperson Cathy Poulin, the daylong event will offer children hands-on art classes taught by industry professionals and working artists from The Art Spot, Brookfield, CT. The children will learn about the life of an artist and then create their own artwork.
Kicked-off in October 2005, the Second Annual Bob’s Discount Furniture Children’s Art Scholarship contest posted hundreds of art submissions online for the public to review and vote for their favorite entries. Children from ages 7-10 submitted artwork of their favorite animal, ages 11-14 submitted examples of their favorite vacation destination and ages 15-18 submitted artwork of their favorite place to hangout. A total of sixty children from Connecticut, Maine, Massachusetts, New Hampshire and New Jersey were chosen as the top finalists and then a panel of art professionals chose three finalists from each of the three age categories.
“This definitely was the biggest and most talented children’s art competition that we’ve had to date,” explained Bob’s Discount Furniture spokesperson Cathy Poulin. “From sketch drawings to watercolors to paintings on canvas, the level of talent of all of the children’s artwork is really outstanding”.
The Scholarship Art Contest final event will be held at the Wesleyan University’s Exley Science Center, 265 Church Street, Middletown, CT. The building is located at the between Pine Street, Lawn Avenue and Church Street on the university campus.
Date: Saturday, May 6, 2006
Time: 9:30 a.m. – 3:15 p.m.
Agenda
9:30 - 10 a.m. - Registration/Main Room
10 -12 noon - Children’s Morning Art Class Session
12 - 12:30 p.m. - Lunch
12:45 - 2:45 p.m. - Afternoon Art Class Session
*2:45 - 3:15 p.m. - Art Work Display/Main Room &
Awards Ceremony of Scholarship Recipients*
For more information about the facility or directions go to http://www.wesleyan.edu/facilities/conferences.html
About Bob’s Discount Furniture
The fast-growing New England furniture retailer with 21 stores located throughout Connecticut, Massachusetts, Maine, New Jersey and New Hampshire, Bob’s Discount Furniture has built strong brand awareness and customer loyalty through its unique shopping environment, customer service commitment and everyday low prices. First-time visitors are pleasantly surprised by the comfortable atmosphere and vast selection of quality furniture that surpasses their “discount” expectations. As a part of the overall shopping experience, many of the Bob’s locations have complimentary cafés featuring gourmet coffee, fresh baked cookies and candy, while other locations offer home theater and video arcade entertainment. Known for their unique style of television and radio advertising, Bob Kaufman, president, and Cathy Poulin, public relations director, have been inviting customers for over a decade to “Come on down!” For more information, visit www.mybobs.com.
May 4th, 2006
ST. LOUIS–(BUSINESS WIRE)–May 3, 2006–
Furniture Brands International (NYSE:FBN) announced today its financial results for the first quarter of 2006.
Operating Results - First Quarter
Net sales for the first quarter of 2006 were $661.4 million, compared with $641.6 million in the first quarter of 2005, an increase of 3%. Net earnings for the first quarter were $30.2 million, up from $24.8 million in the first quarter of last year.
Net earnings per diluted common share were $0.61, as compared to $0.46 in the first quarter of last year ($0.45 pro forma for $1.1 million of net stock option expense).
Included in the 2006 first quarter net earnings was $5.4 million ($0.11 per diluted common share) from the recognition of an accounting gain on interest rate swaps as a result of the refinancing of the company’s revolving credit facility, which occurred early in the second quarter. Also included in the 2006 first quarter net earnings were restructuring, asset impairment and severance charges totaling $0.5 million ($0.8 million before income tax benefits) or $0.01 per diluted common share. The 2005 first quarter net earnings were negatively impacted by restructuring, asset impairment and severance charges totaling $2.5 million ($3.8 million before income tax benefits) or $0.05 per diluted common share.
Management Comments
W. G. (Mickey) Holliman, Chairman and Chief Executive Officer, commented: “We were generally pleased with the results of the quarter. We continue to see mixed results between our Brands, with weakness in one being offset by strength in another. As a whole, however, the stronger performing Brands - particularly Thomasville and Lane - drove meaningful year over year improvements.
“In the longer-term, we continue to pursue the strategies that will drive both growth and profitability across the company. Our senior leadership team is focused on building our Brands through aggressive service initiatives, product development and consumer research. Our logistics and supply chain, sourcing, and retail development processes are being streamlined across all our Brands to support these initiatives.
“During the first quarter we repurchased 1.0 million shares of our common stock.”
Outlook
Mr. Holliman concluded, “With respect to the second quarter, we currently expect net sales to be up in the low single digits versus the second quarter of last year and net earnings per diluted common share to be in the $0.29 to $0.33 range. This includes the effect of $0.03 in previously disclosed restructuring, asset impairment and severance charges. This also includes the effect of $0.03 in increased interest expense due to the upfront recognition of the accounting gain on a cash flow hedge. As is our practice, we will provide an update on our second quarter expectations in early June.”
A conference call will be held to discuss the first quarter results at 7:30 a.m. (Central Time) on May 4, 2006. The call can be listened to on the company’s website - www.furniturebrands.com.
Furniture Brands International is one of America’s largest residential furniture companies. The company produces, sources and markets its products under six of the best-known brand names in the industry - Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.
Statements in this release that are not strictly historical may be forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties, and Furniture Brands undertakes no obligation to update any such statement to reflect later developments. These include economic conditions, competitive factors, raw material pricing and restructuring efforts, among others, as set forth in the Company’s most recent Form 10-K filed with the SEC.
May 4th, 2006