Archive for October, 2007
By: Furniture World Magazine
Furniture Brands International hosted a meeting with the investment community to unveil the company’s strategic plan. The presentation included comments from CEO-Designate and Vice Chairman Ralph P. Scozzafava and was attended by additional members of the Furniture Brands senior management team. The half-day presentation was webcast and can be viewed at the Investor Relations section of http://www.furniturebrands.com.
“Our strategic plan is to move to a more focused organization that is integrated and serves the mid-and high-end markets for residential furnishings. As part of this plan, we have a set of shorter- and longer-term business interventions that we are implementing now,'’ said Scozzafava.
The strategic plan is composed of four key elements that will touch every part of Furniture Brands. The four key elements of the strategy are:
Build Our Brand Power
“We are developing best-in-class consumer insights that will drive a portfolio strategy for our family of brands,'’ Scozzafava said. “By creating differentiated and ownable strategies for each brand, we can better harness the power of iconic names in the home furnishings industry such as Broyhill, Lane, Thomasville and Drexel Heritage.
“We’re also re-engineering our product development process to bring a more orderly and efficient flow of fresh designsto the consumer. We have several new team members in this area, and we will make design and innovation a core strength in 2008,'’ Scozzafava said.
Win in The Store
“Brands are most powerful when they are marketed in the right sales channel. We are sharpening our multi-channel sales network to put the right mix of product into multibrand mass retailers, dedicated single-brand stores, and through the designer community. Common to all of these channels is the imperative that we properly manage our sales controllables of availability, space, merchandising and price,'’ Scozzafava said. “By managing these key factors, we move the dialogue beyond merely item and price and into the area of customer value creation.
“Furniture Brands will also be a smarter operator of its own stores in 2008. In some instances, this means closing unprofitable locations where the strategic plan elements cannot overcome poor local market fundamentals. In these cases, the company will likely incur one-time charges that, while a drain on near-term earnings, will set the stage for more profitable company-owned retail operations,'’ Scozzafava said.
Deliver Operational Excellence
“A company with the size and scale of Furniture Brands can always find new opportunities to reduce costs. One of our most immediate action steps has been to improve our supply chain performance through four near-term imperatives: developing capabilities in global procurement and sourcing, reducing inventory and improving delivery performance, optimizing domestic manufacturing, and implementing a new network distribution strategy,'’ Scozzafava said.
“We’re creating near-term cost savings opportunities by not only restructuring our global supply chain operations, but also by moving to a shared service organization that leverages economies of scale to reduce SG&A costs and increase speed. The shared services model will centralize processes such as information technology, finance, and human resources and let the brands focus on making great furniture.
Grow and Develop Our People
“We will not win by having the best strategy, we will win by having the best people. We intend to make all of the Furniture Brands companies a great place to work, where people are inspired, engaged, and passionate, where high performance is expected and delivered, and where people work collaboratively and internal boundaries don’t exist,'’ Scozzafava said.
The company will issue a third-quarter 2007 financial results announcement after the close of trading on October 31 and will host a conference call at 7:30 am CT on November 1. Both the earnings announcement and conference call webcast can be accessed at the Investor Relations section of http://www.furniturebrands.com.
About Furniture Brands
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.
October 31st, 2007
By: Furniture World Magazine
Casegoods manufacturer Leda Furniture announced that it will participate in this year’s Reach for the Rainbow’s Crystal Ball. The annual charity event is a black tie dinner and dance gala, being held on November 10th in Toronto, and will also feature a live performance by Canadian icons Randy Bachman and Burton Cummings.
“Reach for the Rainbow is thrilled to welcome Leda Furniture back as a proud supporter and sponsor of the 2007 Crystal Ball,” states Jennifer Jeynes, Manager of Communications for Reach for the Rainbow.
The Crystal Ball event benefits programs dedicated to developing integrated opportunities for children and young adults with disabilities across Ontario, Canada.
Leda has donated a 5-pc Bedroom Suite set from their Art Deco Fifth Avenue collection for the live auction in order to raise funds, which support Reach for the Rainbow’s mandate that all children belong and all children are equal. There are hundreds of items up for auction, both live and silent, including trips, cars, TV’s, collectibles and more.
“We are very proud to be involved with this event to raise money for children with disabilities.” states Marco L Confalone, President, Leda Furniture.
“A sincere thank you to Marco Confalone and the Leda Furniture family for their tremendous generosity to Reach for the Rainbow.” adds Jeynes.
October 31st, 2007
By Christopher Muther | The Boston Globe
NEW YORK — Some exhibition visitors were downright testy with designer Douglas Homer at the International Contemporary Furniture Fair late last spring.
Homer’s booth, which featured pieces from his latest furniture collection, looks like it has been vandalized. A vintage dining room set and matching highboy was sprayed with pink, yellow and aquamarine graffiti. Nearby, a classic Harry Bertoia diamond chair was sprouting strands of sponge cork.
“One woman was quite angry that we hired graffiti artists to tag the table and chairs,” Homer said. “She said she has a set at home just like it that she loves and has been trying to give it to her daughter. But her daughter doesn’t want them. I asked if her daughter would like our version, and she said, ‘Definitely.’ ”
The moral of Homer’s story was seen throughout the fair. Companies adapted traditional chairs into works of pop art to draw younger customers, or consumers who are ready to replace their somber Barcelona chairs with high-gloss orange club chairs that appear to be upholstered in patent leather. These chairs look incredibly modern, partly because of the devil-may-care attitude designers have taken toward furniture history.
There was a constant crowd of gawkers around a collection called Plastic Fantastic by Belgian designer Jasper van Grootel. Traditional Italian dining chairs, arm chairs, club chairs, even side tables are sprayed with several layers of a vinyl coating. The details of the chair can still be seen underneath, but it looks as if it has been sculpted out of foam rubber. The chairs sell for $1,000 to $2,000. Custom vinyl-sprayed sofas are available for $6,000.
“What I like about the combination is the new and the classical,” van Grootel, 28, said. “I really wanted something that felt old, but reinterpreted into something I, or my friends, would want in their home.”
Amuneal, a manufacturer that primarily produces furniture for the hospitality industry, introduced chairs that can become art of any kind. Both the fabric and wood can display digital images. The idea is that restaurants or hotels can customize the chairs, but interior designers also are interested. The company was displaying designer Gilberto Santana’s version of the chairs, featuring photos from a 1947 magazine.
All around, the traditional chair was reinterpreted into a leather-patched fashion statement or a metallic Queen Anne. Capdell showed a dining-room chair that was a canvas for limited-edition art, featuring an illustration that resembled the poster for the film “All About My Mother.”
October 30th, 2007
By: Furniture World Magazine
Prophesy Transportation Solutions, Inc. announced the launch of its FurnitureTrans™ software. FurnitureTrans™ is a complete furniture delivery management software package for retailers and manufacturers. It handles an order from the moment it is created until the moment it is delivered.
The software provides real-time order information, annual delivery cost savings of 15-20%, seamless integration with existing software, and the opportunity to plan and then re-plan the way shipments go out. FurnitureTrans™ also offers real-time reporting on where every shipment is that is available — to the retailer’s management and sales staff — keeping everyone informed at all times.
“For a long time now, we have been hearing from furniture retailers and manufacturers about the need to be as efficient as possible in their deliveries,” said Edward J. Forman, Prophesy’s CEO. “Transportation costs and responsiveness to customers are two vital concerns for these companies. We can help because the furniture gets there the most efficient way, and you always know where a shipment is,” explained Forman. This is what companies need to compete in today’s marketplace.
About Prophesy: For more than 20 years, Prophesy Transportation Solutions, Inc. has developed software products to efficiently transport goods. Prophesy’s FurnitureTrans™ is the fully integrated software package for furniture deliveries. For more information on FurnitureTrans ™, visit http://www.prophesylogistics.com/solutions/furniture-delivery-software.php, or call 877-652-2362.
October 30th, 2007
This week’s decision by Alpena County commissioners to allow the prosecutor’s department to keep controversial furniture they earlier this year had denied payment for is bad precedent.
First, let us make clear our position has nothing to do with the merits of whether the furniture was needed or not.
For us, the issue is a matter of principle, vision, integrity and ethics.
Regardless of whether the furniture was needed, it already has been established the purchase of it was not made through proper channels, country procedures had been circumvented and in fact, no one in the prosecutor’s department even was involved with the purchase. That being the case, commissioners were correct several months ago to not pay the bill and order the furniture be returned.
Had that been done in a timely fashion, commissioners would not have been presented with the issue again this week, when suddenly drug forfeiture money became available to cover the furniture’s costs.
The prosecutor’s office argued the money for them had to be used “to enhance” law enforcement. Now you can argue with us all you want about that interpretation, but we do not believe the spirit and intent of the law is being adhered to when office furniture qualifies under that provision.
By allowing for the purchase, commissioners now have opened the door for other county departments to likewise circumvent policies and procedures. Sure, other departments might not have access to the same type of extra funds the prosecutor’s office enjoys but hey, why worry if apparently the commissioners don’t.
Where is the vision in the county when commissioners can’t come up with money to fund economic development efforts, yet they approve purchasing furniture that previously had been denied?
Commissioners had done the right thing in August when they denied the purchase. We only wish they had stuck to that decision and let everyone know there is a right and wrong way in following county procedures.
October 29th, 2007
Growth Initiatives Planned for Outdoor Furniture Manufacturer
DEERFIELD, Ill.–(BUSINESS WIRE)–Private equity firm Pfingsten Partners, L.L.C. and co-investors HarbourVest Partners LLC and DuPont Capital Management Corporation today announced the acquisition of Tropitone Furniture Co., Inc., an Irvine, CA-based designer and manufacturer of upscale casual outdoor furniture sold under the Tropitone and Basta Sole brands. Pfingsten plans to build the business through a combination of organic growth, add-on acquisitions, use of Pfingsten’s Hong Kong office to increase offshore product sourcing, and other operational initiatives.
Founded in 1954, Tropitone serves the commercial and specialty retail sectors, including upscale lodging, cruise ship and country club customers as well as premium casual furniture stores. Tropitone’s diversified customer base, focus on high-end market segments, strong management team, and multiple opportunities for expansion made it an attractive candidate for acquisition.
Under the terms of the agreement, Tropitone will remain headquartered in Irvine, California, and retain the 600-plus employees at its manufacturing facilities in Irvine and Temecula, CA, and Sarasota, FL, as well as its showroom in Chicago’s Merchandise Mart. Michael L. Echolds, Tropitone’s chief executive officer, will remain in his current role and retain significant ownership in the company, while founding family members Doug and Angella Baker will retire from the business.
“Tropitone is an established player in an industry that is growing by more than 5% annually, and the fragmented nature of the industry offers ample opportunities for growth through strategies ranging from expanding product offerings and entering new channels to acquiring complementary businesses,” said John H. Underwood, Managing Director, Pfingsten Partners L.L.C. “This is a strong platform acquisition that we believe has the potential to become the leader in high-end outdoor furniture.”
“We decided earlier this year to seek an institutional owner with the financial resources to help us accelerate our growth, but we were also looking for an investor with the operations expertise and strategic capabilities to support our growth plan,” Echolds said. “Pfingsten’s focus on collaborative business planning, its in-house operating team and its history of growing its portfolio companies fit those criteria precisely, giving us the tools we need to take the company to the next level.”
The transaction closed on October 24. Financial terms were not disclosed. Tropitone was represented by Chicago-based investment bank Lincoln International L.L.C.
About Pfingsten Partners
Deerfield, Illinois-based Pfingsten Partners is an operationally oriented private equity firm, formed in 1989, which makes equity investments in middle market manufacturing, distribution and business-to-business service companies. Since completing its first investment in 1991, Pfingsten Partners has acquired 55 companies and built value by providing capital, corporate finance and operating resources necessary to improve operations and achieve profitable business growth at its platform companies in partnership with management. For more information, visit www.pfingstenpartners.com.
About HarbourVest Partners
HarbourVest Partners, LLC is an independent global private equity investment firm and an SEC registered investment advisor, providing vehicles for institutional investors to invest in the venture capital and buyout markets in the U.S., Europe, and elsewhere through primary partnerships, secondary purchases, and direct investments. HarbourVest and its subsidiaries have 170 employees, including 65 investment professionals deployed in Boston, London, and Hong Kong. In 25 years of investing in private equity, the team has committed more than $17.6 billion to newly formed funds, representing relationships with 200 private equity managers. The team has also completed over $3.9 billion in secondary purchases of partnership interests and invested $3.1 billion directly in operating companies. The firm’s clients consist of 240 institutional investors, including pension funds, endowments, foundations, and financial institutions throughout the U.S., Canada, Europe, Australia, and Japan. To learn more, visit www.harbourvest.com.
About DuPont Capital Management Corporation
DuPont Capital Management (DCM), originally charged with overseeing the DuPont Corporation’s institutional pension assets, has evolved over the past thirty-one years into a competitive, diverse, and agile investment group uniquely positioned to offer other investors the benefits of the firm’s experience. DCM, an SEC registered investment advisor, currently manages more than $28 billion in assets across a wide spectrum of capitalization, geography, and asset classes. DCM applies value-based global investment capabilities that combine valuation and risk control disciplines, within and across asset classes and international boundaries, to produce risk-efficient excess returns that satisfy its clients’ investment objectives. In addition to investing in Private Equity assets, the firm’s equity products include U.S. Large Cap, Mid Cap, Small Cap and International and Emerging Markets. Its global fixed income products include Core, Core Plus and High Yield strategies. For more information, visit www.dupontcapital.com.
About Tropitone
Founded in 1954, Tropitone is based in Irvine, California, and is recognized throughout the casual furniture marketplace for its design leadership as well as its commitment to service and value. The company sells its products to retailers, designers and the hospitality trade under the Tropitone and Basta Sole trademarks. In addition to its headquarters and manufacturing plant in Irvine, the company operates a manufacturing facility in Sarasota, Florida. For more information about the company, visit www.tropitone.com.
October 29th, 2007
DENVER–(BUSINESS WIRE)–National furniture retailer Sofa Mart® and Furniture Row® Outlet, brands of Furniture Row® Companies, have donated over $218,000 to aid the estimated 2 million street children in Mexico City.
The campaign, titled “Hope Is Always in Style,” consisted of $20 for every sofa sold during the campaign to be donated to World Vision.
All proceeds for the campaign will benefit World Vision’s “Ninos de las Calle” (street children) program. The program assists in the widespread 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.
Advancement Area Director for World Vision Rowin Floth comments on the donation: “On behalf of the children of Mexico City being blessed by this gift, I’d like to extend my gratitude to Sofa Mart® and Furniture Row Outlet®.”
Furniture Row® Companies is one of largest family-owned specialty home furnishings and bedding retailer in the U.S. 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 in 31 states. For more information on the company visit www.FurnitureRow.com.
October 26th, 2007
THE National Gallery of Victoria hopes to raise up to $300,000 by selling unwanted items.
In a rare move, the NGV has won State Government permission to shed 111 pieces of historic furniture, including Spanish and English pieces from the 17th and 18th centuries.
Regional galleries and the National Trust of Tasmania will receive 25 pieces. Another 78 will go to public auction in Melbourne next week.
NGV director Dr Gerard Vaughan said the gallery had received the furniture as gifts and, though good, it was not of museum quality and had not been on display for many years.
“We have had to keep it in storage and it became a drain on the taxpayer,” Dr Vaughan said.
The protocol is rigorous: external experts have to inspect the pieces and agree with the decision. Then the donors’ families are traced and they are offered the gifts back.
Finally public institutions are offered the items and have a right to be given them for nothing.
Sotheby’s will auction 78 lots in its Armadale saleroom on Tuesday.
October 26th, 2007
Gallery features nine collections
Kids Today,
Perry, Ga.-based Mobley Fine Furniture has opened a Young America Signature Shop. The store launched the gallery last week with Young America executives on hand.
The shop features nine Young America collections that span the stages of a child’s life using the manufacturer’s Built to Grow concept. Groups include the cottage myHaven collection, offered in 20 wood and painted finishes; the contemporary GenAmerica; the transitional Contentment and Serenity groups; and Isabella, a popular girls with European styling and embellishments. In addition to the accessorized vignettes, the gallery includes a play area, a design center, videos on the Young America line and access to a Web site that allows customers to see all the pieces in every line. The 2,000-square-foot gallery is within Mobley’s 50,000-square-foot store.
“We are excited about our partnership with Young America,” said Patrick Mobley, owner of Mobley Fine Furniture. “With excellent quality and design, Young America makes the furniture buying experience easy.”
“Mobley Fine Furniture and Young America are the perfect partners,” said Kevin Bowman, Young America’s vice president of sales for Stanley Furniture. “With its long-standing reputation for excellence, Mobley Fine Furniture is known for its quality and service. Together, we will help parents and children create the unique and beautiful spaces they’ve dreamed of.”
October 25th, 2007
By: Furniture World Magazine
Bon-Ton’s newest high-end furniture gallery, Younkers Furniture Gallery in Green Bay, Wisconsin, which opened in July announced that they’ve begun using the Warehouse on Wheels System by Demountable Concepts with the help of Cory Home Delivery.
Cheryl Segreti, Vice President of Furniture Operations for Bon-Ton, explains the logistics challenge they faced in opening the location in Green Bay. “We needed to service the new Green Bay furniture gallery which is 225 miles away from our Naperville, IL furniture distribution center. It was important to leverage our Illinois warehouse and inventory to service this outlying store. Since we supply high-end furniture, everything must be opened, inspected and “deluxed” prior to shipment which means a cross dock operation was not an option for us, due to the high potential for damage to our goods.”
Here’s how the Warehouse on Wheels System fits Bon-Ton’s operation:
• Two 26′ Demountable bodies are loaded by skilled workers at the distribution center in Naperville, IL with furniture that has been “deluxed” and inspected.
• The bodies are then transported overnight on a semi-trailer to Green Bay, WI where they are demounted and left free-standing in the local Penske Truck Leasing yard. The semi-trailer then returns to the Naperville warehouse with bodies from the previous day’s deliveries.
• The following morning, locally domiciled driver teams take five minutes to mount the free-standing bodies with non-CDL straight trucks and are on the road early making deliveries.
Bon-Ton enlisted a third-party partner for the delivery portion of the operation.
Joseph Cory Jr., Vice President of Cory Home Delivery Service, Bon-Ton’s local delivery partner, describes how the Warehouse on Wheels is revolutionizing local furniture delivery and how it helps his company service retailers like Bon-Ton.
“Furniture retailing is trending toward centralized warehousing. Retailers are consolidating warehouses, but still need to service outlying markets. We realize that a cross dock situation where furniture is loaded on a 53′ trailer then moved to a local delivery truck can result in a high level of product damage due to multiple handling. In the past we’ve used tandem pup trailers to service outlying markets, but the shortage of Class-A delivery drivers makes that system difficult to staff.
“The Demountable System is a solution that enables us to use Non-CDL delivery drivers and to service outlying markets up to 300 miles away from a distribution center.”
Collaborative efforts between vendors often result in a superior level of service for retailers such as Bon-Ton.
Cory Home Delivery Service leases the demountable equipment and vehicles to make Bon-Ton’s home deliveries from Penske Truck Leasing. The vehicle and the body transfer process take place at the Penske facility in DePere, WI. Stacy VanScoyk, District manager for Penske, says, “We feel like a real partner in this operation. Our team is excited about being part of Bon-Ton’s expansion and our service staff is trained and ready to assist the Cory Home Delivery team in making this operation successful.”
Here are some benefits of the Warehouse on Wheels System that enable retailers to work more efficiently for increased profitability:
• Eliminates need to open regional warehouses to service remote markets
• Can open regional stores quickly without additional warehouse and inventory
• Loading two bodies at a time increases warehouse efficiency and dock door availability
• Less product damage because double handling of freight can be eliminated
• Earlier local deliveries because freight is hauled to regional markets overnight
• Local drivers spend time delivering product instead of loading trucks
• No longer necessary to utilize Class-A CDL drivers
“Demountable body systems are gaining popularity among top 100 furniture retailers,” according to Rustin Cassway, President of Demountable Concepts, Inc. “The ability to deliver more furniture with fewer warehouses, fewer dock doors and non–CDL delivery drivers, plus the increasing cost of fuel, makes it easy to choose the return on investment gained by going with a demountable operation.
“Our flexibility to work with retailers, leasing companies and third party delivery services enables us to dovetail our demountable system into any furniture retailer’s operation. We add to their success by becoming a partner and making them more profitable.”
Find out how Demountable Concepts can add profitability to your company’s bottom line. Call Mark Ansberry at 1-800-254-3643 today or visit www.demount.com for more information.
October 25th, 2007
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