Furniture Today,
HIGH POINT — Bruce Hric, who last month was named acting CEO and president of

major rug resource Capel Enterprises, is charging ahead as if the word “acting” was not part of his title.

 His first task is to direct the company’s 90th anniversary celebration, a year-long promotion that will begin in January.

Capel was founded in 1917 by A. Leon Capel Sr. as a braid rug manufacturer. In addition to continuing this core business, Capel now markets a full spectrum of hand-made and machine-made rugs made in the United States and abroad.

The anniversary celebration will feature several promotional events.

“We will be strengthening the business relationships that have made us so successful over the years,” said Hric. “For example, we are planning special events with our licensing partners. We also hope to optimize the synergies we have with these companies so we can better coordinate the full range of products these licensing programs offer to consumers.”

Hric is an eight-year veteran of the Capel management team, most recently as chief financial officer. His new CEO duties are not far removed from his financial responsibilities, he said.

“As chief financial officer, you learn to spend money as if it were your own. As president, the goal is to build shareholder value by building the company’s sales and marketing efforts,” Hric said.

As Capel marks its 90th year, it’s a time for introspection as well as celebration.

“The business has changed dramatically over 90 years,” said A. Leon Capel, a company principal. “At one time, traditional department stores were our principal business partners. Now we have to look for new channels of distribution and new ways to do business.”

One of the company’s newest efforts is development of a business-to-business Web site for its dealers. “Our new site gives retailers 24/7 access to order entry, inventory updates, shipping and billing,” said Hric. “It’s designed to streamline the entire process.”

Hric took over the reins at Capel when Eric Birnbach resigned after a year as president and CEO. Before Birnbach’s tenure, the company was led by brothers Leon, Jesse and Arron Capel, who officially retired last year. All three men retain their ownership stake. A third generation of Capel family members is now climbing the corporate ladder.

Business currently is “tough but good,” according to Hric. “With our reputation and product line, we appeal to a broad base of customers. But it’s not an easy market out there.”

He said one of his goals is to add to the company’s customer base rather than to focus exclusively on prices.
“The keys to a well-made product are always color and fashion, not price,” emphasized Leon Capel.

Hric said his short-range goal is to tap into the energy of the company’s management to move the business forward. “We have a lot of energy and enthusiasm that will facilitate our growth in the next few years,” he said.

One thing now being revitalized is the Capel Gallery Program, which is headed by Bud Young, vice president of sales and marketing.

“We are expanding placement of the gallery program, which is geared principally to furniture stores,” Hric said. “It provides retailers with a turnkey operation that helps them build their rug business into a true profit center.”

Capel also is strengthening its branding programs and product categories. For example, it has expanded its indoor-outdoor collections to include 50 rug designs, which the company has grouped into a new program called Capel Anywhere.

“The outdoor rug category has grown substantially industry-wide, said Hric. “Now people want attractively designed rugs not only for outdoors, but for other rooms in the home such as the kitchen or porch, where you need added toughness.”

Capel is one of the few rug suppliers also deeply involved in retailing. The company now operates nine stores, the newest in Memphis, Tenn.

“Our retail numbers were good in the fiscal year just ended, and our gross margins were up a few points,” said Hric. “While we are looking for other sites for stores, we do not have anything on the drawing boards at this time.”