Archive for September 7th, 2007
By Jeff Kiger, Post-Bulletin, Rochester MN
The long-empty Carson Pirie Scott building could become home to a furniture retailer new to Rochester.
A step toward that goal was taken Wednesday when the Rochester City Council OK’d splitting the 67,000-square-foot empty building in Miracle Mile Shopping Center along with a big chunk of parking lot as a separate lot, separating it from the nearby and also empty Krispy Kreme building on the shopping center’s plat.
That opens the door for the Twin Cities-based HOM Furniture chain to take over the building.
“This plat change is part of an agreement with the landlord,” said HOM owner Wayne Johansen before the meeting. “If this goes through and a few other things happen, we could close on the sale and start renovation yet this fall.”
However, Johansen cautioned that the deal still might not happen. With 11 stores in Minnesota, South Dakota, North Dakota, Iowa and Wisconsin, he said his experience tells him a deal is not done until the deed changes hands.
Johansen declined to say what other things need to happen for the deal to go ahead.
Why consider Rochester for HOM Furniture?
“A lot of our marketing has been coming into Rochester already,” said Johansen. “We do a fair amount of business with Rochester customers.”
The two-story Carson Pirie Scott building has sat empty since the department store closed in the fall of 2002. Then-Carson owner Saks Inc. moved the operation to the former Montgomery Ward store in Apache Mall and re-opened it under the Herberger’s brand.
September 7th, 2007
By Erin Hoover Barnett
Portland furniture maker Leland Tauer turned hype about Ikea into an opportunity.
“No Swedish particle board here,” Tauer posted on the side of Rose City Furnishings, at Northeast Broadway and 34th Avenue, that faces Interstate 84.
“I never meant it as any kind of a slam,” says Tauer.
His sassy marketing move was more a statement of his shop’s identity, he says — and that of the anti-cookie cutter city for which it’s named.
Ikea isn’t the first mass market retailer to compete for Portlanders’ living rooms. But its high-profile arrival has encouraged local furniture makers, who rely on appreciation of quality over price, to define and cozy up to their base.
“You’ve got to find your niche,” Tauer says.
Tauer and his old Madison High School buddy Larry LeFebvre launched their business at Saturday Market in 1985 — pedaling $200 custom bookcases where others sold $10 pottery bowls.
Today Rose City sells from its showroom and builds to order from solid cherry, oak and maple mostly in the Mission style. The business is riding the bungalow rehab trend in which homeowners want classic furniture crafted for a particular space.
Tauer wasn’t thrilled to see the concessions Ikea got — such as its massive sign — that Rose City could never wangle. But he doesn’t view the business as competition. “We’re not trying to be everything to everybody,” he says.
Marc Gaudin at The Joinery sees the retailer’s splash landing as an educational moment.
September 7th, 2007
Haverty Furniture Cos.’ sales dipped 8.3 percent in August, as the company continued to weather the housing slowdown.
The Atlanta-based furniture retailer (NYSE: HVT - News) reported its August sales dropped to $70.7 million, compared with $77.1 million in August 2006. On a comparable-store basis, August sales fell 10.1 percent. Comparable-store sales do not include stores or locations opened, closed or otherwise non-comparable during the last 12 months.
“August comparable store sales were off by 10.1 percent versus strong results for the same month last year when comps had increased 10.3 percent,” said Clarence H. Smith, president and CEO. “Our total written business in August decreased 4.3 percent compared to last year. Early September sales are trending better with total written business for the Labor Day weekend off 3 percent compared to last year’s mid-teen percentage increase. In fact, written business this Labor Day set an all-time record for any single day at Havertys.”
Sales through August decreased 9.4 percent to $516.7 million, compared with $570.6 million in the same period of 2006. On a comparable-store basis, sales decreased 11 percent through August.
Published September 6, 2007 by the Atlanta Business Chronicle
September 7th, 2007
GRAND JUNCTION, Colo. — Damage is estimated at $50,000 after an early-morning fire at the Furniture Row complex in Grand Junction.
Police and fire crews responded to the business at about 3:00 a.m. Thursday, and found 25 old mattresses burning outside the building.
The blaze blackened the southwest corner of the complex.
Crews got the fire under control within a few minutes and went inside the building, where they found 15 new mattresses from Denver Mattress charred by the heat of the flames outside.
One man was questioned about the blaze, but later released.
The cause of the fire is under investigation.
Furniture Row bills itself as a complex of four specialty stores at one location.
The Row includes Denver Mattress, Sofa Mart, Oak Express and Bedroom Expressions.
The company is based in Denver, and operates more than 330 stores in 31 states. It also owns and operates a NASCAR NEXTEL Cup team.
Copyright 2007 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
September 7th, 2007
Furniture Today,
Brand will be developed, Universal parent Samson says
MONROE, Mich. — Universal Furniture will acquire the Pennsylvania House trade name and certain assets from La-Z-Boy, the companies said today.
La-Z-Boy said the parties have signed a letter of intent for the deal, which is expected to close later this month. Terms were not disclosed.
No announcement was made on Pennsylvania House’s sister company, Clayton Marcus, which also has been on the selling block for some time.
Pennsylvania House, a 120-year-old company, makes furniture for every room in the home. La-Z-Boy acquired the brand in 2000 as part of its acquisition of Ladd Furniture.
“While Pennsylvania House has an excellent name and reputation in the marketplace, the company does not fit with La-Z-Boy’s overall long-term strategy,” said Kurt Darrow, La-Z-Boy president and CEO. “Universal is a well-respected company and will be a natural partner for Pennsylvania House as it moves forward.”
Randy Chrisley, CEO of importer Universal, said, “Pennsylvania House is a quality brand with outstanding consumer recognition. That recognition, combined with Universal Furniture’s exceptional factory support, provides us with a unique opportunity to expand our ability to meet the changing needs of our customers.”
Kevin O’Connor, president and CEO of Samson Marketing, the parent of Universal, said the acquisition fits in with the company’s strategy.
“The strategic plan for Universal is to develop brands like Better Homes and Gardens and now Pennsylvania House, which we will market to the industry and the consumer. The ‘value added’ of consumer brands, coupled with better-end products made in China, is a direction we feel will ultimately create a win-win equation for the corporation and our Universal retail dealer base,” said O’Connor.
In recent years, virtually all of Pennsylvania House’s line has been moved offshore.
In February, La-Z-Boy Furniture sold occasional chair producer Sam Moore to Hooker Furniture, and at the time said it was talking to potential buyers of Pennsylvania House and Clayton Marcus.
September 7th, 2007
Company debuted outdoor collection in U.S. last spring
Casual Living,
Maku Furnishings, the Southern California manufacturer of contemporary home furnishings focused around an outdoor, lifestyle and design heritage, is making its first appearance at the International Casual Furniture & Accessories Market Sept. 16-21 in Chicago. The company’s outdoor collection debuted in the U.S. this spring.
The company will be located in booth 6040 on the eighth floor and will exhibit its full line of authentic and unique home furnishing products. Comprised of multiple outdoor seating, dining and entry-way elements, Maku captures the aspirational west coast lifestyle in a way that appeals to consumers across the country. In addition, all of Maku’s seating and dining elements are manufactured with sustainable, plantation grown teak utilizing both sustainable practices and attention to detail through the entire manufacturing process.
“Exhibiting at the International Casual Furniture and Accessories Market is another step in Maku’s amazing growth and one we’re happy to take,” said Johnny West, CEO and co-founder of Maku. “Maku’s fresh design perspective and brand philosophy has resonated well with retail and consumer buyers alike. By exhibiting (at the show), we’ll be able to expose Maku in a tangible way to an even greater audience.”
Maku’s success at the retail level has led the brand to expand from a sales perspective as well. Karyn Kruschka has joined Maku as a senior outside sales representative.
According to West, Kruschka has worked with some of the most innovative modern brands in the home furnishing industry and brings her years of experience establishing retail distribution channels to the Maku family.
While Kruschka’s professional background is impressive, her family’s rich history in the furniture business is even more unique. She represents the fourth generation of her family to work in the home and contract furnishings industry. Long before she was born, Kruschka’s great-grandfather worked for Herman Miller as a craftsman.
“We couldn’t be happier to have Karyn as a part of the extended Maku family,” West said. “Her experience in the industry makes her great for almost any brand, but her passion for the ideals Maku is founded on makes her perfect to represent us with key retail accounts.”
Retailers who wish to meet with Maku or learn more about the company can contact Kruschka at 773-580-9970 or karyn@makufurniture.com.
September 7th, 2007
Manufacturer hopes to obtain institutional investor to take advantage of growth opportunities
— Casual Living,
Tropitone Furniture is making significant progress in its plan to join with an institutional investor, the company reported in late August.
“We are pleased with the progress we’ve made in searching for the right financial partner for Tropitone, and the company has attracted substantial interest from the private equity community,” said Michael Echolds, Tropitone’s chief executive officer. “Based on the discussions we have had thus far, we are confident we will establish a relationship with a premier institutional investor committed to helping us grow our business.”
In June, Tropitone announced it had engaged Chicago-based Lincoln International to be its financial adviser to seek an institutional investor to provide the company with access to expanded financial resources to accelerate future growth plans. Tropitone’s revenue and earnings have grown sequentially each year for the past five years.
“With the continued strength of Tropitone’s position in both the retail and hospitality markets, the company sees many exciting opportunities for future growth in what has become an increasingly global and competitive marketplace,” Echolds said. “An institutional investor can provide the access to the additional financial resources that Tropitone will need to take advantage of these opportunities.”
Troptione was founded over 50 years ago by the Baker family, and Doug Baker, along with Angella Baker, has been the principal shareholder since 1992. Echolds anticipates continuing in his role as CEO with the current management team when the new investor is in place, and he expects to remain a significant shareholder in the company as well.
September 7th, 2007