Archive for November, 2006
By: Furniture World Magazine
American Furniture Warehouse announced the Grand Opening
celebration of its Firestone location for Thursday, December 7, 2006. With over $100,000 in prize giveaways, including a 2006 Corvette Targa Coupe, the event is sure to bring the community together for one memorable evening. The celebration will also provide as a special occasion for Jake Jabs, AFW’s President & CEO, to present Project C.U.R.E. with a check for $1 Million.
The new 530,000-square-foot Super Center, equal to nine-and-a-half football fields, will be the company’s second largest location, second only to the Englewood facility which stands at 635,000–square-feet.
“Firestone is one of the fastest-growing communities in Colorado and we are very excited to get in early and serve as a beacon for other businesses that will surely be joining us there soon,” Jabs says. “American Furniture Warehouse Firestone will give us a distribution point for our current and future customers in Northern Colorado that is much needed in light of the explosive growth in the state – particularly in that part of the state.”
This $30 million project will have a powerful, profitable impact on Firestone and the neighboring northern communities. As one of the city’s largest employer, the new store will employ more than 300 employees.
“We are proud to welcome a company as well-respected and successful as American Furniture Warehouse to the city of Firestone, Colorado,” adds Firestone’s mayor Mike Simone. “The opening of this store brings tremendous economic growth and prosperity to our community and beyond.”
Those who attend the Grand Opening can register to win over $100,000 in prizes including the fully-loaded 2006 Corvette Targa Coupe completely customized by Purifoy Chevrolet for American Furniture Warehouse. The body of the 400-horsepower, 6-liter, 6-speed paddle shift automatic transmission Corvette, has been treated to a special red, white and blue paint scheme to reflect the heritage of AFW. Along with the paint, a Specter Works ground effects package with rear wing was added to make the Corvette a true stand out. The interior was enhanced with some silver and blue piping to go along with the Victory Red leather seats. For more details, please visit www.jakescorvette.com.
The celebration also serves as an opportunity for AFW to present a $1 Million check to Denver-based Project C.U.R.E. – a non-profit humanitarian relief agency that collects thousands of pounds of desperately-needed medical supplies and equipment each year and delivers them to hospitals and clinics in more than 100 developing countries that do not have access to safe, quality medical care. American Furniture Warehouse has been actively involved with Project C.U.R.E. since kicking off the million dollar matching grant for the organization in the spring of 2004.
“Jake is one of Denver’s most successful businessmen, and he is one of Denver’s most benevolent leaders in philanthropic giving,” says W. Douglas Jackson, PhD, JD, President & CEO of Project C.U.R.E. “Because of his generosity towards Project C.U.R.E., we know firsthand that he is as serious about doing good for mankind as he is about selling good furniture. We are blessed to have him in our community, and I wish him every success with this newest store.”
Both Jake Jabs, President & CEO of American Furniture Warehouse and Douglas Jackson, PhD, JD, President & CEO of Project C.U.R.E. will be available for interviews.
About American Furniture Warehouse
Headquartered in Englewood, Colorado, American Furniture Warehouse is Colorado’s largest furniture company. Founded in 1975 by entrepreneur Jake Jabs, the company has grown year-after-year to become one of the top furniture retailers in America and one of the largest privately-held businesses in Colorado. With eleven locations in metro Denver, Colorado Springs, Fort Collins, Glenwood Springs and Pueblo, American Furniture Warehouse provides quality, stylish and affordable home furnishings and accessories to customers throughout the state. American Furniture Warehouse is actively involved in the community and the company contributes time, monetary support and in-kind donations to hundreds of non-profit organizations each year. The company and Jabs have received numerous awards and honors including Colorado’s Top Company Award, the National Home Furnishings Association Retailer of the Year, Colorado Easter Seals’ Champion Award and Muscular Dystrophy Association Humanitarian Award, among others. For more information, please visit www.afwonline.com.
November 30th, 2006
The Las Vegas Market is marking the holidays with a tree decorating contest to support area charities.
Victor Pedraz, director of Las Vegas Design Center at World Market Center, has organized the Design Center’s first-ever contest. The trees are being decorated by several Las Vegas Design Center showrooms and their respective designers. Participating showrooms include Janet Yonaty, Revco, Brown Jordan, Padma’s Plantation, Ariel, Pacific Rim, Stephan John and JBS Environments.
“We have paired each showroom with the designer of their choice,” said Pedraz, who added that designers are creating tributes for Christmas, Chanukah and Kwanzaa. Decorated trees will be showcased in World Market Center’s atrium.
Las Vegas Design Center invites the general public to visit the atrium of Building A from Thursday, Dec. 7 through Friday, Dec. 15, when the trees will be on display. Visitors are able to place a silent bid on the holiday trees during the time they are on display. At noon on Dec. 15, the auction will close and winners will be notified by telephone that day. All proceeds from the silent auction will benefit the local charities selected by each of the LVDC showrooms.
Aaron Diamond, showroom manager and design director for Pacific Rim, will be decorating a white flock, peacock-themed tree in silver, blue, gold and chartreuse green. “This is a great way to decorate World Market Center’s atrium and to show off our diversity in design at the same time,” Diamond said. “As designers we have a broad range of holiday designs beyond the traditional red and gold.” Pacific Rim has selected a local women’s shelter as the beneficiary of the silent auction proceeds for their tree.
Designer Janet Yonaty plans to decorate her showroom’s tree with decorative tassels from her company’s collection. “The holidays are an incredible time and a time for celebration,” said Yonaty, who added that she plans to decorate her tree for both Christmas and Chanukah, with silent auction proceeds benefiting a children’s charity. “I’m very happy and excited about the tree decorating event, which will recognize the incredible design presence at Las Vegas Design Center,” she said.
The Las Vegas Design Center includes 40 permanent showrooms on the first two floors of Building A of the World Market Center that are open year-round to the design trade. An additional 35 showrooms in Building B, opening in January, will also be part of the program.
November 30th, 2006
Merchandise Mart Properties Inc. has named Julie Messner as director of leasing for MMPI properties in High Point, N.C.
In her new role, Messner is responsible for the day-to-day leasing of temporary exhibit space for the Suites at Market Square and Plaza Suites. Messner reports to Walt Goldsby, vice president of leasing for MMPI’s High Point properties.
“Julie’s extensive experience in the furniture industry as a sales representative, buyer and interior designer makes her an ideal person to help MMPI bring the very best home furnishing resources to High Point,” said Goldsby. “With experience in so many different aspects of the furniture industry, Julie brings a very unique perspective to our leasing team, our current and prospective exhibitors.”
For the past nine years, Messner was a sales associate and interior designer with Rose Furniture Company in High Point. In this role, Messner was responsible for selling more than $1 million in merchandise each year.
November 30th, 2006
New Frontiers will explore new businesses and new markets, mergers and acquisitions
Glen Raven, maker of Sunbrella and a global provider of innovative fabric solutions, has created an innovations-driven department called New Frontiers, to be headed by Vice President Philippe Petot.
“Innovation must be our single greatest competitive advantage and the single greatest competitive advantage for our customers,” said Allen E. Gant, Jr., Glen Raven president. “The primary mission of this new department is to drive us to seek out new solutions ahead of our customers’ current needs and to create a sense of urgency in successfully bringing new ideas to market.”
Petot, who joined the company in 1998 as part of its merger with Dickson, S.A., most recently served as project manager for construction of a new facility for Glen Raven Asia in Suzhou, China. Petot’s prior experience includes serving as president of Dickson Elberton Mills, Europate SA and Boise Cascade in France. In his new position, Petot reports to Glen Raven vice president, secretary and general counsel Wally Wallace.
“We named this department ‘New Frontiers’ because of the intentionally broad focus we are taking on the challenge of continuous innovation,” Petot said. “Our activities will include promotion of an innovation culture within the company, exploration of new businesses and new markets, mergers and acquisitions and efforts that cut across divisional lines throughout the company.”
In his new role, Petot will also serve as a clearinghouse for information related to new technology, emerging markets, governmental regulation and global competition. While his primary role will be to support various Glen Raven divisions in their quests for product and market innovation, he will also manage projects outside of existing business models. “Innovation is not just the mission of the New Frontiers Department; it extends enterprise-wide,” he said. “One of our most important goals is to foster a culture of innovation that inspires every employee.”
Founded in 1880, Glen Raven has a history of innovation that includes such milestones as providing fabric for the first flag on the moon, the invention of panty hose and creation of Sunbrella® brand fabrics, the industry leading performance fabric. Glen Raven’s Dickson® brand of performance fabrics are the market leaders throughout Europe.
Glen Raven also has developed fabric for use in high-tech protective apparel in industrial settings and high-quality fabric media used by many of the world’s leading retailers.
Glen Raven currently sponsors a program known as GlenOvation, which rewards employees who submit ideas for new products or process improvements.
“Glen Raven is an innovative company, and always has been,” Gant said. “But, with the level of global competition we face today and the rapid pace of change, we recognized the need for an area within the company that could serve as a dedicated resource and as an inspiration to make innovation a way of life for our company.”
With manufacturing, marketing and product development centers in North America, Europe and Asia, Glen Raven sells products in more than 100 countries worldwide. For more information, visit www.glenraven.com.
November 30th, 2006
TUPELO, Miss. – Lane Express, a quick-ship program from the
manufacturer and importer, received accolades from parent Furniture Brands International.
During a conference call with securities analysts, FBI Chairman Mickey Holliman said a third-quarter sales increase of 2% at FBI was largely due to Lane, where he said business has been strong all year. He said the division had gained market share and lauded the success of Lane Express.
The program involves Lane’s entire case goods line and its best-selling upholstery SKUs, Holliman said. Dealers are promised 14-day shipping, but goods usually arrive in three to 10 days. Case goods and upholstery are shipped on the same truck, a first for Lane.
About 450 dealers are participating in the program, Holliman said.
Vicki Collums, merchandise manager for one participant, Jackson, Miss.-based retailer Miskelly Furniture, said Miskelly usually receives Lane Express product within five days of placing an order. Previously, Lane orders would take about three-and-a-half weeks, she said.
Retailers are asking Lane to include imported leather in the express program as well, she said.
The program began about three years ago, Collums said. She said the quick-ship promise is helpful to the store sales staff.
“Today’s customers, when they do shop, tend to want their merchandise right now. We don’t deal with customers happy to wait a month or two months. They want it delivered to them in one or two days, or even want to pick it up that day if possible,” Collums said.
Ed Cowart, merchandise manager for Brooks Furniture of Albany, Ga., has been using the program for about six months. He said orders are getting to the store in 10 to 12 days rather than six to eight weeks as before. Occasionally, if an item is out of stock, he said, delivery can take three to four weeks.
The Lane Express program tags items by points, with a minimum of about 30 required for each order, Cowart said. For example, a sofa is worth 2.65 points and a loveseat 2.53 points.
“I wouldn’t say it’s a perfect program, but it sure is nice to get some things a little quicker than six to eight weeks,” Cowart said. As for improvements, he would like the quick-ship program to include more of the store’s best sellers.
Holliman said in the conference call that a quick-ship programs also is in the works at Broyhill, another FBI company.
Lane officials declined to give more information about the program, and Broyhill officials were unavailable for comment.
November 30th, 2006
HIGH POINT – Hamilton Square, a 113,000-square-foot showroom building at 101 S. Hamilton St. here, will get an
upgraded lobby and several other renovations as part of a remodeling program set to begin before the end of the year.
One new feature will be loft-style windows on exterior walls that will let in more natural light and improve visual elements of showroom settings.
Several large-screen plasma televisions will be added to the lobby and the building’s food services will be upgraded to include an expanded coffee bar.
Building manager Eddie Forward said work will be completed in time for the spring High Point Market, which begins March 26.
He said the project is timed to coincide with the opening of the new Mill on Centennial building, adjacent to Hamilton Square. Both buildings are owned by High Point developer Wayne McDonald.
“With the success of the exhibitors at Hamilton Square and the quality of the exhibitors interested in the Mill, the logical progression is to tie the two buildings together,” Forward said.
A buyer parking lot linking the buildings will be repaved as part of the project, he said.
November 30th, 2006
BOCA RATON, Fla. — Howard Slavin, most recently president of importer Lifestyle Enterprise’s Shanghai Leather division,
has left the company to start a case goods and upholstery resource called H. Slavin and Son.
The company is a division of Sales and Marketing Solutions, a new venture started in early November.
The company has a fabrics division headed by industry veteran Murray Engle. Last month, Sales and Marketing Solutions said it had contracted with Joan Fabrics to manage and direct sales, merchandising, marketing and design programs of the company’s Home Fabrics, Mastercraft and Joan Velvets divisions.
Slavin said the SMS divisions will be run as separate entities.
Slavin, who left Lifestyle about a month ago and also is a former president and CEO of retailer Wickes Furniture, will run the furniture division with his son Michael Slavin.
At Lifestyle, the elder Slavin’s responsibilities included product development, sourcing and merchandising.
“I made a decision after the October market,” he said. “We parted amicably. I assured (Lifestyle owner William Hsieh) we have no intention to go after the part of business he’s mastered.”
Lifestyle said it has not yet filled the Shanghai Leather position.
Slavin’s company will have a 4,000-square-foot space at the next High Point Market in the 220 Elm building, showing about six case goods collections and a fabric and leather line with about 20 groups. He said the company will work with retail customers to develop product.
“Over the last several years in various positions I held and even more with Lifestyle, customers said, ‘Can you make or will you make this?’ I said to myself, there’s an opportunity here. Obviously, with the shrunken retail community, they all don’t want to share,” Slavin said.
He said that by developing product in concert with retailers, the company “can basically hit specific assignments or requests and give retailers exactly what they want in price point, product and delivery.”
He said H. Slavin and Son will develop fashionable, quality furniture at value prices.
H. Slavin is targeting Top 100 retailers and will sell FOB out of China. Slavin said the company has a goal of hitting eight- to 10-week delivery after receiving orders.
“We want to speed up lead times and give customers a little edge from others by doing this better and quicker,” he said.
November 30th, 2006
CORTE MADERA, Calif. — Specialty retailer Restoration Hardware said revenues in its third quarter increased more
than 22%, but the net loss was greater than in the same period last year.
The retailer, which operates 111 stores in the United States and Canada, attributed much of the sales growth to its catalog and Internet channels. Still, its stores recorded a same-store sales increase of 3.9% in the quarter.
“We are pleased to report another quarter of solid progress,” said Chairman and CEO Gary Friedman. “(The revenue increase) reflected our ability to gain market share and improve profitability, despite a difficult home furnishings environment.”
Total revenues for the 13 weeks ended Oct. 28 were $157.1 million, compared with $128.4 million in last year’s third quarter. Restoration Hardware incurred an operating loss of $3.7 million, substantially less than the $5.9 million operating loss in the comparable period last year.
However, the company’s net loss, including interest expenses and a one-time charge for the expensing of stock options, totaled $5.7 million, or 15 cents per share. In last year’s third quarter, the loss was $4.2 million, or 11 cents per share.
In the nine months, total revenues rose 20.3% to $469.8 million. The retailer’s net loss totaled $10.4 million, or 27 cents per share, compared with $9.8 million, or 28 cents per share, in the comparable period last year.
November 30th, 2006
Company could emerge from Chapter 11 early next year
LINWOOD, Pa. — A U.S. Bankruptcy Court in Delaware has
approved a financing plan and disclosure statement for foam producer Foamex International, a move that could lead to the company’s emergence from Chapter 11 protection early next year.
Foamex Chairman Raymond Mabus Jr. called the approval “a significant milestone” in the Chapter 11 process, and said it means Foamex can begin soliciting support for its reorganization plan.
“This moves us closer to our ultimate goal of emerging from Chapter 11 as a stronger company, better positioned to compete in the marketplace,” Mabus said.
The court has scheduled a Jan. 18 hearing to consider confirmation of the reorganization plan, the company said.
Under terms of the plan, all secured and unsecured creditors, as well as the holders of Foamex bonds, will receive 100% of their allowed claims in cash. Existing common stockholders will keep their shares, but each share of preferred stock will be converted into 100 shares of common stock.
The company has commitments for up to $790 million in new loans and will raise $150 million in equity financing through a rights offering.
The offering gives common stockholders the right to buy up to 2.56 additional shares of common stock for each share currently owned. The new shares will cost $2.25 each.
If the rights offering fails to raise $150 million, several major stockholders – primarily equity investment firms – have agreed to buy more shares so that the full amount can be raised.
The disclosure statement estimates that slightly more than $13 million will be paid to unsecured creditors. The total doesn’t include five disputed claims totaling $3.74 million.
Foamex has been operating under Chapter 11 protection since September 2005.
November 30th, 2006
By CARA SPAZIANI / Journal Staff Writer
J. Tanon, left, and Loren Hancock load four truckloads of wood
pallets and miscellaneous debris out of the Interwoven Mill on Wednesday afternoon. (Journal photo by Ron Agnir)
MARTINSBURG — A Hagerstown furniture store will occupy what was once the largest sock manufacturing facility in the world after renovations are complete at the former Interwoven Mills complex.
Laber’s Office Furniture, a retailer that specializes in new and used discounted office furnishings, has already acquired a loyal customer base in the Martinsburg area, store officials said Wednesday.
“I think it’s a good opportunity,” said Mark Raidt, the general manager of the furniture store. “It’s worked here for 30 some odd years. The business is doing really well in Hagerstown.”
The 450,000 square-feet Knitting Machine Co./Interwoven Mill complex was purchased Nov. 20 by Ridgecrest Investments, a Frederick-based investment firm that specializes in acquiring abandoned and underused downtown commercial and industrial complexes and restoring them for use as retail or office suites or for mixed-use projects.
The site has been owned since 1999 by Biltrite Homes Corp., which is owned by Hagerstown businessman Vincent Groh.
Groh purchased the complex, which sits along West John Street and Porter Avenue, for $1.7 million six years ago.
Frankie Corsi, the chief financial officer for Ridgecrest Investments, declined to comment on the amount the company paid for the site. Groh did not return phone calls as of presstime.
In 2004, Ridgecrest Investments purchased Laber’s Office Furniture, which is now located in a building the company also owns on East Baltimore Street in Hagerstown.
The furniture retailer was established in 1974 by Russell Laber and deals in furnishings from St. Timothy, Herman Miller and Lazy Boy.
Raidt said the store often purchases complete showrooms and offices and will then resell the items at a reduced price.
“It could be customer returns, scratched, dented or nicked in the warehouse,” Raidt said of the furniture the store sells.
Laber’s Office Furniture currently employs four people, and will need to hire two to three more when the store expands to Martinsburg.
Once established at its new location, the furniture retailer is anticipating merging into a home furnishing warehouse and is hoping to attract more business along Interstate 81, Corsi said.
“Our feeling is that if we are just a few minutes off the interstate, we can reach areas farther south,” Corsi said. “We feel the location is just fine for what we do.”
Through e-mail correspondence Monday, Corsi said the complete overhauling of the site may not be accomplished for a few years. The company has begun refurbishing one of the site’s buildings at the corner of Winchester Avenue and West John Street, Corsi said during a phone interview Wednesday.
“We’ve already started cleaning it out,” Corsi said. “We’ve taken about four or five truckloads to the dump. We’re moving pretty quickly.”
Corsi said he was uncertain when employees from Laber’s Office Furniture would be able to move into their new location.
Besides the furniture store, Corsi said the former Interwoven Mill site could include retail and office space, restaurants, a courtyard and residential loft apartments.
“That mixed-use environment, combined with the overall size of the property, will allow us to create a community within Martinsburg,” Corsi said through e-mail.
Ridgecrest Investments does not plan on hindering the operations of the site’s current tenants like Classic Chocolates, Craft Gallery Treasures and Panhandle Gifts & Floral Design.
“We’ll be treating the current tenants that are there as a typical tenant/landlord relationship,” Corsi said. “We’re happy to keep them there.”
November 30th, 2006
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