Archive for June 13th, 2006
Furniture Brands’ Broyhill unit to close N.C. plant, layoff 700
Furniture Brands International Inc.’s Broyhill Furniture Industries subsidiary
said Monday that it will close its Pacemaker case goods manufacturing
facility in Lenoir, N.C., this August.The closing will eliminate all of the 700 salaried and hourly positions, according to a release.
The company cites increased competition from low-cost imports.
“This incredibly difficult decision is a direct result of the competitive pressures we are seeing in our domestically produced case-goods products,” says Tom Lentz, company spokesman. “Unfortunately, this has become a too-familiar consequence of the increasing global manufacturing environment in which our products must compete.”
Furniture Brands estimates the restructuring, asset impairment and severance charges associated with this closure will total about $5.1 million.
Furniture Brands’ Thomasville subsidiary announced in May that it was closing a manufacturing facility in Thomasville, N.C. That closing, scheduled for Aug. 1, will lay off 278 employees.
St. Louis-based Furniture Brands International Inc. (NYSE: FBN - News) manufactures furniture under the Thomasville, Henredon, Drexel Heritage, Maitland-Smith, Broyhill and Lane brands.
Published June 12, 2006 by the St. Louis Business Journal
June 13th, 2006
Mattress Firm, one of the nation’s leading mattress retailers, announced that it has completed the acquisition of Chandler, Ariz.-based Metropolitan
Mattress.
Terms of the acquisition were not disclosed. Metropolitan Mattress has 26 stores in the greater Phoenix region.
The acquisition of the Metropolitan Mattress locations, combined with Mattress Firm’s 14 existing locations, makes Mattress Firm the largest mattress retailer in the greater Phoenix area with a total of 40 stores. The addition of these locations will bring Houston-based Mattress Firm’s total store count nationwide to over 340 locations in 32 markets across 19 states.
“This acquisition is a great fit for Mattress Firm and allows us to achieve a leadership position in the Phoenix market, a market where we’ve already built a strong customer base over the past seven years,” said Gary Fazio, CEO of Mattress Firm. “Our commitment is to build on Metropolitan Mattress’ solid reputation of great products, value and service by bringing our unique retail experience, sleep expertise and the broadest selection of products and brands in the industry to these locations.”
Fazio added: “This acquisition underscores our strategy to grow both organically and through acquisitions as we strive to become the leading specialty mattress retailer in all of the markets we operate.”
Mattress Firm, an affiliate of Sun Capital Partners, Inc carries a full line of national name-brand mattresses such as Sealy®, Simmons®, Tempur-Pedic® and Stearns & Foster®.
Mattress Firm will begin the process of transitioning Metropolitan Mattress locations with new signing, its signature store format and expanded product selection.
About Mattress Firm
Houston-based Mattress Firm (www.mattressfirm.com), an affiliate of Sun Capital Partners, Inc., is America’s preferred specialty mattress company and the nation’s largest specialty retailer of top-of-the-line Sealy products. Founded in 1986, Mattress Firm’s knowledgeable sales staff, broad product offering and competitive prices have fueled the company’s growth to more than 340 stores in 32 markets.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 115 companies worldwide with combined sales in excess of $30.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, New York, London, and Shenzhen.
June 13th, 2006
LENOIR, N.C. (AP) — Broyhill Furniture Industries, a unit of Furniture Brands International, the largest U.S. maker of residential furniture, on Monday
said it will close a plant in North Carolina in August, resulting in the elimination of 700 jobs.
Furniture Brands expects to take a related charge of $3.3 million, or 7 cents per share related to the closure of the facility, which is located in Lenoir, N.C.
The company estimates that a penny of these charges will be taken in the second quarter and the remainder will be posted in the third quarter. The plant, which makes Pacemaker case goods, will stop operating in August.
Furniture Brands produces, sources and markets its products under brand names Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.
Shares of Furniture Brands fell 21 cents to $20.68 during morning trading on the New York Stock Exchange.
June 13th, 2006
By: Furniture World Magazine
The Summer & Casual Furniture Manufacturers Association has named finalists in the annual Apollo Awards program recognizing retail excellence.
Finalists must demonstrate outstanding accomplishments and commitment to customer service in sales of summer and casual home furnishings.
SCFMA member companies will select the winners in August. The 2006 winners will be named Sept. 15 at the Apollo Awards banquet during the International Casual Furniture & Accessories Market in Chicago. The SCFMA and Merchandise Mart Properties Inc. are co-sponsors of the event.
Finalists include:
Single Store Category:
Dodds & Eder, Oyster Bay, N.Y.
Fruehauf’s Patio and Garden, Boulder, Colo.
Kolo Collection, Atlanta, Ga.
Leisure Living, Salt Lake City, Utah
Paine’s Patio, West Falmouth, Mass.
Sunnyland Furniture, Dallas, Texas
Multi-Store Category:
Carls Patio, Coconut Creek, Fla.
Georgia Backyard, Suwanee, Ga.
Greenhouse Mall, Austin, Texas
Patio & Hearth Shoppes, Inc., Centerville, Ohio
Patios Plus, Rancho Mirage, Calif.
Waterloo Gardens, Exton, Pa.
The Summer & Casual Furniture Manufacturers Association is headquartered in High Point, N.C. – the furniture capital of the world – and represents more than 80 leading manufacturers and importers of summer and casual products.
June 13th, 2006
LENOIR, N.C.–(BUSINESS WIRE)Broyhill Furniture Industries, a subsidiary of St. Louis, Missouri based Furniture Brands International (NYSE:FBN - News),
announced today the closing of its Pacemaker case goods manufacturing facility located in Lenoir, North Carolina.
The Pacemaker plant is a 522,000 square foot facility and employs approximately 700 people. This closing will entail the elimination of all salaried and hourly positions. The plant will cease manufacturing operations in August, 2006.
Furniture Brands estimates the restructuring, asset impairment and severance charges associated with this closure will total approximately $5.1 million ($3.3 million net of income tax benefit), or 7 cents per diluted common share. We estimate 1 cent of these charges will be taken in the second quarter of 2006 and the remainder will be taken in the third quarter.
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.
June 13th, 2006
SACRAMENTO, Calif. — John Keyes, owner and chairman of Naturwood Furniture, which has two showrooms and a warehouse/outlet store here, has died. He was 68.
Keyes died of a heart attack while fishing in Alaska, a store spokesperson said.
According to the company’s Web site, Keyes assumed responsibility for running the business at age 19 after the death of his father, Walter A. Keyes. John Keyes and wife, Virginia, who survives, bought Naturwood from Keyes’ mother in 1975.
The couple’s daughter, Lisa, is president of the retailer.
Funeral arrangements were pending Friday. In lieu of flowers, memorials may be made to the Northern California Shriners Hospital, 2425 Stockton Boulevard, Sacramento, Calif. 95817, or to Saint Patrick’s Orphanage and Children’s Home, 5945 Franklin Blvd., Sacramento, Calif. 95824.
June 13th, 2006
By Alexa Hinton, ahinton@nashvillecitypaper.com
Friends of furniture store owner Charles Sprintz joke that if they could be reincarnated, they’d like to come back as one of the 73-year-old’s children.
“I hold my family up on a pedestal,” Sprintz, the father of three and grandfather of five said. “Whatever they need, within reason, they get.”
Whether it’s coaching little league baseball and basketball teams; funding the 13-member family vacations to Italy, Colorado or South Carolina; or dropping plans to keep a vow to his daughter-in-law to accompany her on every single doctor’s appointment for her breast cancer treatment, Sprintz makes the effort to put his family first.
His exceptional relationships with his children and devoted community involvement caught the eye of the American Diabetes Association and the Middle Tennessee Father’s Day Council, who join together every year to recognize the best of the best in family leaders. Last week, Sprintz was one of five local men to be named 2006 “Father of the Year” by the joint committee.
“I put my family first. My wife and my children all come first. That’s what it is all about - being attuned to family. You have to do your work, but give to your family of your time and your energy,” Sprintz said.
What is your favorite memory with your father?
My father worked a lot - he was a retail merchant, he had women’s and children’s retail stores throughout south Florida, and his time with family was given on Sundays when we’d play golf together. Otherwise, during the week my mom was more involved, but coming into my teens we played golf together a lot. We were a close family, and I think my father and mother instilled that in me.
What is your No. 1 advice to young fathers?
Even though they need to work, they need to make family a priority. Of course children, once they get to be out of high school, if you haven’t given them any time, you can forget about it because they are out on their own. It is important to spend as much time instilling family togetherness and to get their children to enjoy family life. And the wonderful thing is that kids are just as sweet back to you when you give that.
How did you juggle family while also growing your furniture business?
We just managed. My wife is very keen on keeping us all focused on being together as a family. She gets us together a lot - the whole family - which is just wonderful because all the grandchildren just love each other, and my children and their spouses all get along. It is something you have to nurture in the young years. When they children were younger and involved in sports, I coached and my wife attended. Or, when my daughter was cheerleading, we were in the stands.
What is your secret to staying married for 48 years?
My father-in-law said when we got married that if you give 100 percent and Alyse [Sprintz’s wife] gives 100 percent, you’ll be married for a very long time. It’s always a give and take. In today’s life, so many kids are in the throw-away society. If they get married and it doesn’t work, they give up and get separated. But if you understand that in a marriage there are ups and downs and its never perfect sailing, but if you give equally, you will get through it.
What is the best Father’s Day gift you’ve ever received?
My favorite gift is everyone having dinner together. One of my kids always has us over for dinner.
Favorite home cooked Father’s Day meal?
Veal scaloppini. The cooks in my family are wonderful.
How did it happen that you vowed to accompany your daughter-in-law on all her doctor’s appointments?
First, when she was told about it, I said, you and I are going to New York to [Memorial Sloan-Kettering Cancer Center] to get you a second opinion from the best place in the country. We came back and did everything the doctors there told us to do. I told her that I would be with her for every single scan, every single appointment she has to have, and I have been there. I have kept that promise. If I have a trip, I don’t go on it. She’s a wonderful girl, and I believe she’ll be here a long time. The cancer will never be gone, but it is stabilized. Still going to scans about every three or four months. I don’t miss a one. It’s never been awkward; it’s very comfortable with us. We have a great outlook and attitude toward it.
Of all your community service, which are you most proud of?
My work with the Jewish Federation. It is a wonderful thing because it is for families in need and bringing immigrants over to this country. I’ve given funds from my family, and also furniture. We help them furnish their first place of living.
June 13th, 2006
By: Furniture World Magazine
Emerson et Cie announced that Mark Emerson Smith, son of founders Marvin and Connie Smith, has been named president of the company, effective immediately.
Since joining the company in the mid-80s, 41-year-old Mark Smith has
covered the Northern California sales territory and in 2002 was promoted to vice president and national sales manager.
Smith’s new position means a move to the Triad. He has relinquished his position as sales representative for Northern California and will begin calling Greensboro home later this month. Smith will also maintain a San Francisco office and travel internationally from this location several times each year.
Marvin and Connie Smith will continue their very active roles in the 22-year-old company as joint chief executive officers.
With Mark Smith at the helm, Marvin Smith will be free to spend more of his time building new relationships with domestic companies. Emerson et Cie now produces one third of its products in the High Point facility.
Mark Smith’s new role will also include extensive travel, with an emphasis on product development. Mark Smith’s influence could be seen in the very successful introduction of the Prodigy collection in High Point in April – a pure, upsized reproduction of Louis XIII styling in authentically-distressed oak.
“We are both excited that we have someone with Mark’s enthusiasm, energy and age to step into the position who just happens to be our son,” Marvin Smith said.
Mark Smith graduated in 1996 from Saint Mary’s College of California with a bachelor’s degree in business management. He has represented many companies as an independent sales representative since 1986, in categories ranging from upholstery to major dining room, case goods and occasional, and has been a member of several rep councils, including Jasper Cabinets and The Platt Collection.
His father gives him credit for naming the company to celebrate a family tradition of giving the name “Emerson” to every male in the Smith family for the past six generations. The company’s name has its origin in the tradition of adding “et Cie” after a proprietor’s Christian name to indicate a family business.
“I’m ready to start a new chapter in my life,” Mark Smith said. “I enjoy travel quite a bit and I plan to travel extensively domestically and internationally.”
As for his vision, Smith said he plans to build on the success of a company that just posted its 5th record market in High Point this April.
“I’m not looking to change a lot of how we operate,” Smith said. “I have a lot to learn and a good mentor to teach me what I need to know. We have a great reputation with our customers and vendors, which I look forward to enhancing for the next several years.
“I would like to see us become even more important to our current dealer base and will do so by providing innovative product at logical price points.”
From its beginnings as a small company with a desire to fill a void in handmade Italian furniture, the San Francisco-born Emerson et Cie is a complete source for home furnishings. Emerson et Cie’s 10,000-square-foot showroom is located in the North Court of 200 N. Hamilton, Suite 205. Emerson et Cie distributes its product through retailers of fine furniture nationwide and showrooms in Boston, Denver, Ft. Lauderdale, Houston, Laguna Niguel, Las Vegas, Los Angeles, Minneapolis, Naples, Sacramento, San Diego, San Francisco, St. Louis, Troy, Mich.
June 13th, 2006
According to AKTRIN, a reporting and consulting firm that specializes in the furniture industry, real GDP grew at a seasonally adjusted, annualized rate of 1.7% in the 4th quarter of 2005.
This is the lowest rate recorded since early 2003. This – however – does not
signify a fundamental weakness in the American economy. It was due to Katrina and an unusually cold December that took a toll on hiring and consumer spending. For the full year of 2005 GDP grew 3.5%.
Growth during the first half of this year stood at an annualized rate of 3.9%. It may slow a bit in the second half, averaging about 3.3% for the year as a whole.
Helped by an increase in job creation last year, personal income may hold up better than the economy as a whole. The growth rate stood at 5.5% in 2005. It will probably accelerate to 5.8% this year but – in conjunction with less robust employment growth in 2006 – it may slow down a bit in next year. Nevertheless, we believe personal income growth will remain above the 5% mark. If we take inflation and taxes into account, the anticipated growth rate of real disposable income will be much less, that is only about 3.1% this year and 2.8% next year. This is still a respectable rate if compared to the 1.5% in 2005.
Growth of American consumer spending stood at 3.6% last year. Due to higher interest rates, growth of consumer spending will lag behind the growth of personal income. It may remain above 3% this year but almost certainly fall below that mark in 2007.
The durable consumer good market is subject to erratic fluctuations as such goods are quite sensitive to interest rates. After growing at 9.3% in the third quarter of 2005, it fell by a staggering 16.6% in the last quarter only to rise again to 9.5% in the first quarter of this year (all rates are annualized). The average annual growth last year amounted to 4.4%. Durable good consumption will grow only at an estimated 1% in 2006 but recover a bit in 2007 if interest rates stabilize. The relatively low growth rate of durable consumer good spending is largely due to disappointing automobile sales. Excluding this factor, durable consumer spending would be noticeably higher.
Thanks to low mortgage rates, residential construction was a very strong sector of the American economy during the past two years. The performance in 2005 slowed down a bit, but at a growth rate of 7.2% (in value terms) it remained robust. The housing market is now oversupplied, and growth may drop to as low as 1.3% this year and probably suffer a decline in 2007. In volume terms, this translates to 2.07 million new housing units in 2005 but only an expected 1.89 million in 2006.
Furniture consumption in the USA was weak during the first three years of this century. After only one year with a strong growth performance of 7.9% in 2004, the market slowed down again to a meager 0.7% last year. In line with the advances of disposable income, we foresee a slightly better rate of 4.0% in 2006. This would bring the market value to about $ 82 billion t
June 13th, 2006
LENOIR, N.C. – Broyhill Furniture said today it will cease operations in August at its 522,000-square-foot, 692-employee Pacemaker case goods plant here.
“This incredibly difficult decision is a direct result of the competitive pressures we are seeing in our domestically produced case goods products
,” said Broyhill spokesman Tom Lentz. “Unfortunately, this has become a too-familiar consequence of the increasingly global manufacturing environment in which our products must compete.”
He said the company has taken steps to keep its U.S. plants as competitive as possible, but like the rest of the industry, is turning to imported product to offer the best values.
“Pacemaker has one of the hardest working and finest work forces in the country, and it is sad to see our loyal employees affected by circumstances beyond anyone’s control,” Lentz said.
The plant, which was built in 1971, will cease operations Aug. 26, the company said. Employees will be laid off as early as Aug. 9, although others will work until about Sept. 16 to prepare the facility for sale or storage.
Shipping and maintenance departments may continue to work as late as Nov. 30, when the facility is scheduled to close permanently.
After the layoffs, Broyhill will have about 1,900 employees. The company is a part of Furniture Brands International.
June 13th, 2006
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