Archive for August 24th, 2007
DESPITE reported losses in the export sector, particularly among furniture exporters and seaweed processing companies, the National Economic and Development Authority (Neda) identified the two industry segments as promising investment areas in Cebu.
During the 4th Sun.Star Economic Forum at Marco Polo Plaza yesterday, Madelyn Escandor of Neda also named shoe manufacturing, shipbuilding, seaweed processing, medical tourism, knowledge process outsourcing, and film and entertainment as “promising” industries in the province.
But academe and industry representatives think otherwise.
Mandaue Chamber of Commerce and Industry (MCCI) president Eric Mendoza said not all furniture manufacturers have a bright future.
He said only furniture exporters who cater to high-end markets will experience further growth. Those that cater to low-end buyers, producing cheaper furniture, are in their “sunset” phase, he added.
“Endangered” businesses
Dr. Victorina Zosa of the University of San Carlos, on the other hand, identified furniture, fashion accessory, gifts, toys and house ware export sectors as “endangered businesses” along with: information technology; health and wellness; engineering and construction; metal working; and shipbuilding.
Zosa, a reactor to the Neda report presented by Escandor, said these industries are under threat due to lack of skilled workers.
In her presentation, Escandor said Central Visayas is the country’s fifth largest regional economy. Most of the region’s economic performance is driven by manufacturing industries and the services sector in Cebu, she added.
She said Cebu plays a large role in regional growth.
It has dominated the export industry outside of Luzon, strengthened the tourism industry, reinforced the country’s bid to be the e-services hub in Asia, provided alternative site for investments and increased government revenues.
Escandor said Cebu accounts for 46 percent of total exports in Visayas and Mindanao while the rest of the provinces outside Luzon make up 54 percent.
She admitted, though, that consumer and industrial export manufacturers as well as food and food preparation sectors have posted negative growth last year.
She also said growth in the seaweed processing sector has been hindered by limited supply of raw seaweeds.
Losses
The export sector in Cebu has reported losses caused by the appreciation of the peso against the dollar.
The rise of the local currency’s value has not only caused Philippine exports to be less competitive in terms of price, but also diminished the income of export companies which find that their dollar earnings are equivalent to fewer pesos.
But Mendoza said the appreciation of the peso against the dollar is just an aggravating factor.
Local furniture exporters have been suffering due to cheaper furniture exports from China and Vietnam.
Only furniture companies that have found their niche in high-end markets will survive, he said. Those who want to stay up should also tap emerging high-end markets instead of focusing on enhancing marketing in traditional markets like the United States, he added in an interview during the economic forum.
Still, he said government should review its monetary policies because the effects of the peso’s rise against the dollar are “devastating” on exporters and business process outsourcing companies.
“Some economists are saying there is a need to tame the peso, that it is overvalued. The monetary board has to look into that,” he said. “(Besides) efforts offered by the government (to cushion industry from the negative effects of the peso’s appreciation) are not enough.” (LAP)
August 24th, 2007
Furniture Today,
Move will boost Mattress Firm’s total store count to over 440
HOUSTON — Major bedding retailer Mattress Firm here said it plans to acquire the 35-store Mattress Pro chain, based in Austin, Texas. Terms weren’t disclosed.
Mattress Pro operates stores in major cities in Texas and Nevada, and its owners include several people with past ties to Mattress Firm, including Mattress Firm co-founder Harry Roberts and former franchise owner Philip Busker.
The acquisition will increase Mattress Firm’s market dominance in several cities, bringing store counts to 19 in Las Vegas, 26 in San Antonio, 23 in Austin, 47 in Dallas and 52 in Houston, according to company officials. The purchase will boost Mattress Firm’s store count nationwide to over 440 stores in 36 markets across 21 states.
“This merger is a great fit for Mattress Firm and allows us to further establish our leadership position in several key and growing markets,” said Gary Fazio, CEO of Mattress Firm. “However, we understand that being a leader means more than having the most locations. Mattress Pro has done a tremendous job of establishing a solid reputation in each of these markets by providing a high level of customer service through its professional and talented team.
“Our commitment is to build on the strong foundation they’ve built by bringing our unique retail experience, sleep expertise and the broadest selection of products and brands in the industry to these locations,” he added.
The acquired stores will be converted to Mattress Firm units, with new signage and Mattress Firm’s signature store format, the company said.
August 24th, 2007
By DEENA YELLIN,STAFF WRITER
The Bergen County Prosecutor’s Office has dismissed all the charges against Bill Frechtman, owner of the now defunct Larry’s Baby Furniture store in Westwood who took cash for furniture orders and abruptly closed shop.
The decision has enraged customers who say they were bilked out of thousands of dollars. Frechtman took money for furniture that was never delivered, and he shut down in January.
Bergen County Prosecutor John L. Molinelli said his office dismissed four civilian complaints filed in Westwood because investigators found no criminal intent on Frechtman’s part.
“This is obviously a civil issue,” Molinelli said.
The prosecutor said Frechtman was having money problems and kept taking orders until his finances were so shaky that he was forced to shut down.
In order for the case to move forward, Molinelli said, prosecutors must prove that Frechtman set out to cheat his customers. But there is no indication that that was his plan, the prosecutor said.
Consumer tips
• When you buy furniture, the store must give you a delivery date or you are entitled to full refund.
• Always pay by credit card.
• You have only 60 days from the time you pay with a credit card to dispute a charge.
Source: New Jersey Division of Consumer Affairs
Frank Benedetto, director of the state Division of the Consumer Affairs, said 11 people contacted him to complain that they lost money totaling $16,000. It’s possible more people lost money but may not have reached out to him, Benedetto said.
“There was no consumer fraud violation,” Benedetto said. “He took the money in good faith and went out of business. From the time he knew he was going out of business, he took no money as far as we could prove.”
Frechtman’s lawyer, Jay Atkins of River Edge, said there was never a case against his client. “There was no way in the world he committed a crime. He had a business that failed. That’s not a criminal act,” said Atkins.
Krista Buda of Maywood, who paid $5,000 in cash for furniture that was never delivered, was livid at the prosecutor’s conclusion. “I’m so mad. This is absurd,” she said.
Buda, whose triplets were born 11 weeks premature, went to Larry’s to order furniture while her children were in the Intensive Care Unit. She said Frechtman seemed sympathetic. “He offered to help us and made it seem like he cared. … It’s infuriating. I had even recommended people to go there. I felt like a fool,” Buda said. She never got her money back.
But the store’s original owner, Larry Buxbaum, who sold the business to Frechtman 13 years earlier, helped her get store credit at a local baby store toward a furniture purchase.
Stacy Martinez of Bergenfield, who lost a $760 cash deposit on a bed she bought for her son, was also upset. “It’s crazy that they didn’t prosecute him. He absolutely knew that he had money problems and that he was going out of business. He knew what he was doing. They probably didn’t want to do extra work on it.”
Martinez ended up paying out of pocket for a new bed.
Benedetto said many customers received refunds from their credit card companies.
Staff Writer Carolyn Salazar contributed to this article.
August 24th, 2007
Clint Engel — Furniture Today,
Industry’s struggles table retail project
GILBERT, Ariz. — The developer and marketer of what was to be the largest home furnishings center in the country now say those plans are on hold.
The Gilbert Esplanade Home Furnishings Center was to be part of a 650,000- to 800,000-square-foot mixed-use development, but the furniture industry’s struggles have tabled the project.
“We’re hoping to revitalize it later, but don’t have a true timetable of when that’s going to happen,” said Andy Kroot, partner in De Rito Partners Development, which was developing the estimated $150 million center with Kimco Real Estate Trust.
“Due to the current market conditions in the home furnishing industry as well as residential real estate, we felt the time would be wrong for this development,” said Julius Feinblum, president of Julius M. Feinblum Real Estate, which was marketing the project to the industry.
“When this development was planned there were different economic conditions nationwide and worldwide.”
Construction on the center in the greater Phoenix market was expected to begin this year. Fort Myers, Fla.-based Robb & Stucky was identified as an anchor tenant on Gilbert Esplanade plans, though the Top 100 store never confirmed that.
Kroot said furniture had been expected to represent about 70% of the center, which would also feature, offices, restaurants and other retail.
“We’re probably going to scale back the furniture — move forward with office, restaurants and other retail and bring in the furniture at the appropriate time,” he said. Furniture will probably represent 20% to 25% of the completed projected.
Feinblum, whose Plainview, N.Y.-based firm has been a proponent of home furnishings center and furniture store clusters, said that despite recent challenges, other large furniture centers have remained successful, including the PGA Design Center in Palm Beach Gardens, Fla., and others in Costa Mesa and Murrieta, Calif.
“So far all of the home furnishings centers that have been built and that have been operating longer than one year are showing above average sales (per square foot),” he said.
August 24th, 2007
Larry Thomas — Furniture Today,
Retailers on hunt for promotional goods
TUPELO, Miss. — Living up to its reputation as a haven for traffic-building promotions, the Tupelo Furniture Market kicked off its 20th anniversary celebration with a flurry of order-writing.
Exhibitors said opening-day traffic was lighter than expected — especially in the morning when many hallways were sparsely populated — but that didn’t dampen the enthusiasm of retailers trying to combat the sales slump that has gripped the industry for months.
As usual, promotional upholstery was high on the shopping lists of many buyers, but exhibitors also reported considerable interest in categories such as casual dining, bedding and entertainment furniture.
“We had good traffic on opening day,” said Ron Ashley, president of case goods and upholstery resource Vineyard Furniture International. “We were fortunate that retailers showed a great deal of interest not only in our case goods, but in our upholstery.”
Exhibitors said the combination of sluggish retail sales and the market is taking place less than three weeks after the Las Vegas Market probably curtailed attendance, but most said order-writing was brisk, especially from small and midsized dealers from the Southeast.
“A lot of people are very loyal to this show,” said Edwin Shoffner, vice president of sales at bedding producer Park Place. “They come back year after year.”
Jeff Cook, president of first-time exhibitor Broyhill, said he was pleased with opening day, and said he also was impressed with the attentiveness of the Tupelo market staff.
“We had a strong opening day,” said Cook, whose company is one of about 100 new exhibitors here. “The buyers we’ve seen have been seriously interested in our line.”
Two of the busiest showrooms were operated by case goods and upholstery powerhouse Ashley and locally based Fraenkel, a resource for case goods, upholstery and bedding.
“Promotional upholstery is what drives retail business, and this market is the place for promotional upholstery,” said Fraenkel President Brian Akchin.
Akchin said traffic was strong on Tuesday — the day before the official opening — and continued into Wednesday.
Kerry Lebensburger, who oversees sales at Ashley, agreed. He said that about a dozen Top 100 retailers were among the approximately 275 who had visited the Ashley showroom by mid-afternoon Wednesday.
“Our Georgia reps saw more dealers on Tuesday than they saw at the entire Las Vegas Market,” Lebensburger said.
August 24th, 2007
By BRIAN FUNK Staff Reporter
Vaughan-Bassett Furniture lost its longest-serving employee on Saturday with the passing of 89-year-old Carlisle W. “Buck” Higgins Jr.
Higgins had worked at the Galax furniture company for 68 years. He was a past president and chairman of Vaughan-Bassett.
He had been undergoing rehabilitation after a fall last December, but had returned to work on a limited basis up until he was admitted to Twin County Regional Hospital last week.
“His mind was sharp right up until the end,” said Doug Bassett, executive vice president of Vaughan-Bassett.
Bassett said Higgins was an important link to both the company’s history and to the history of the furniture industry.
Born in 1918, in Sparta, N.C., Higgins graduated in 1935 from Oak Ridge Military Institute and from the University of North Carolina at Chapel Hill in 1939.
Higgins began working for Vaughan-Bassett Furniture in September 1939, shortly after marrying Margo Vaughan, daughter of company founder Bunyan C. Vaughan.
He was sent for training in Johnson City, Tenn., and eventually returned to the headquarters in Galax.
Around this time, Higgins was called to serve in World War II. “He was extremely proud of the time he spent training other pilots in Phoenix, Az.,” Bassett said.
Higgins served as a captain in the U.S. Army Air Corps and was stationed as a pilot in Australia, Burma and the Philippines during World War II.
Higgins returned to Vaughan-Bassett after the war. In 1963, Higgins and a fellow Air Corps pilot, Wyatt Exum, began operating the company. Higgins served as Vaughan-Bassett’s president and chief executive officer from 1963 to 1985, and as the company’s chairman of the board until January 2007.
Bassett said Higgins loved his job at Vaughan-Bassett and came to work as often has he could, health permitting, through this year.
At the time of his death, Higgins was semi-retired and still served as vice chairman of the board.
Higgins’ work at Vaughan-Bassett in recent years involved the company’s credit department. Bassett said Higgins kept a close watch on delinquent accounts “and we’ve had great success in collecting from our 3,000 customers.”
John Bassett, chairman of Vaughan-Bassett Furniture, said that Higgins was a mentor to him when Bassett joined the company 25 years ago. “He loved his work and always had meaningful and insightful ideas. He truly left his mark on the industry.”
Higgins died at Twin County Regional Hospital, a facility for which he served on the founding board when it was built.
His service on the board was an example of his lifetime of community involvement.
Higgins served for many years on the Galax School Board and the board of directors of the Wytheville Community College Educational Foundation. He received and honorary degree from the college in 2005.
John Vaughan, former president of Vaughan Furniture, said Higgins was one of his best friends. “He’s been a great citizen of Galax. Every time something came along to improve life in the city, Buck was in the forefront, raising money for it.”
Doug Bassett said Higgins’ passions were golf and traveling to furniture markets.
“He and Wyatt loved to travel to the west coast to play golf, especially at Pebble Beach and along the Monterey Peninsula. He was famous for having a wonderful time at furniture markets in Chicago, Dallas and High Point. He was known for working hard and playing hard.”
Higgins was a longtime member of the First Baptist Church of Galax.
He was preceded in death by Margo, in 1971. Survivors include the couple’s two daughters, and his second wife, Ginny.
An obituary for Higgins appears on page 8A.
August 24th, 2007
Furniture Today
Tribble, Chmil named to key posts in residential segment
HIGH POINT — Fabric source Tietex Interiors is realigning its marketing and sales team by the primary markets it serves, and has named industry veterans Craig Tribble and Nick Chmil to new positions to manage its residential business.
Tribble, a fabric rep for over 25 years, has been named business development manager, residential. Chmil, also a fabric rep with more than 20 years experience, has been named business development manager, jobber and retail.
Both report to President Mike Durham, who said they will have broad responsibilities for conceptual and strategic planning, as well as for organizing and supervising field sales efforts.
“This change is about serving customers more effectively,” Durham said. “As world markets shrink, we see an absolute necessity to be more knowledgeable about every customer, more strategic in our thinking and more timely in our performance.
“This initiative is an essential component of a determined growth strategy,” he added. “We fully intend to maintain current growth levels, and we anticipate an acceleration in those levels in the very near future.”
Durham said the repositioning dovetails with planned capital investments by parent Tietex International Ltd., which he said will be announced later.
In a related move, rep Bill Mulhere is now concentrating solely on contract sales, and Tietex Interiors expects to hire additional sales staff for residential.
August 24th, 2007
Furniture Today,
Vote will pick inductees, who will be revealed at Oct. 2 banquet
HIGH POINT — Seven nominees will vie for induction into the American Furniture Hall of Fame, the AFHF Foundation said yesterday.
The candidates, chosen from nominations by AFHF members, are:
• George B. Cartledge Sr., who died in 1997 and was chairman of Grand Piano and Furniture in Roanoke, Va., a Top 100 chain with 23 stores.
• Joyce Cash Eddy, who started with a small company in 1972 and built a multimillion-dollar furniture business, Habersham. She is known for her hand-styled, hand-painted and hand-finished product, and her development of new and unique finishes. She also donates a portion of her company’s revenues to charitable organizations,
• O. William “Bill” Fenn Jr., former president and CEO of Stanley Furniture, a senior manager with Thomasville Furniture and Armstrong World Interiors, and former president and vice chairman of Ladd Furniture.
• Sam P. Finger Jr., who died in 2001 and was president and chairman of Houston retailer Finger Furniture. Under his leadership, Finger Furniture became the South’s largest privately owned home furnishings retailer and an innovator in home furnishings merchandising. He pioneered the environmental room setting concept, where furnishings and accessories were displayed in home-like settings.
• Fred Friedman, who died in 2005, was president and chairman of Carl’s Furniture, Boca Raton, Fla. Under his leadership, the Top 100 chain grew to a company with more than 500 employees, 22 stores and estimated revenues exceeding $130 million.
• Mitchell Gold, who teamed with Bob Williams in 1989 to start The Mitchell Gold Co. in Taylorsville, N.C. With an investment of $60,000, they began making upholstered dining chairs. Today, renamed Mitchell Gold + Bob Williams, the $100 million company offers upholstery, case goods, lighting, rugs, accessories and fine-art photography.
• Felix Wright, longtime leader of components and furniture manufacturer Leggett & Platt. He was a champion of the principle of integrity in business, and under his direction L&P expanded its product offerings and distribution network.
A vote by AFHF members will choose the inductees, who will be announced at the annual Hall of Fame banquet on Oct. 2, during the High Point Market.
“The individuals nominated by their industry peers represent leaders whose notable contributions have had a significant impact on the success of the furniture industry,” said J. Don Coleman, president of the Hall of Fame Foundation. “They are an inspiration for setting standards of innovation, determination and service.”
Reservations for the banquet may be made by calling (336) 882-5900.
August 24th, 2007
The 2008 China International Kitchen Furniture and Appliance Fair (CKFA) will showcase the latest trends and fashions and promote the development of the integrated kitchen. Through elaborate design, the integrated kitchen not only incorporates kitchen furniture, appliances and home decoration, but also involves all elements, even pipelines and walls.
Koelnmesse is incorporating its abundant resources of Imm Cologne, Imm Cuisinale and Domotechnica, which were held successfully for years in Germany, into the 2008 CKFA. It will take place from March 27 to 30, 2008 at China Import & Export Fair Pazhou Complex.
Read more about the Chinese market’s development of the integrated kitchen.
August 24th, 2007
DENVER–(BUSINESS WIRE)–National furniture retailer Sofa Mart® and Furniture Row Outlet®, retail brands of Furniture Row® Companies, will once again work together to aid the estimated two million street children in Mexico City.
The charity campaign titled, “Hope is Always in Style,” allocates $20 for every sofa sold at the stores nationwide to World Vision for the duration of the campaign which runs from August 22 through September 12.
The campaign was developed in 2000, and all of the proceeds have benefited World Vision’s “Ninos de las Calle” (street children) program. The program assists in the wide-spread problem of homeless children in Mexico City.
Specifically designed to enable street children to become more self sufficient, and move into a stable environment, the program focuses on providing educational support, shelter, children’s homes, and family reintegration whenever possible.
About Furniture Row Companies
Furniture Row® Companies is one of the largest family-owned specialty home furnishings and bedding retailers. The company is comprised of five specialty store brands including: Oak Express®, Sofa Mart®, Bedroom Expressions®, Denver Mattress Company® and Furniture Row Outlet®. Furniture Row® operates more than 330 stores nationwide. For more information, go to www.furniturerow.com.
About World Vision
World Vision is a Christian relief and development organization dedicated to helping children and their communities worldwide reach their full potential by tackling the causes of poverty. For more information, please visit www.worldvision.org.
Contact:
Furniture Row Companies
Wendy Manning, 303-293-2437
wendy.manning@furniturerow.com
Source: Furniture Row Companies
August 24th, 2007
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