Clint Engel — Furniture Today,
ATLANTA — Two and a half weeks into high-impact

sales to boost business in South Florida Leath Furniture said it may have to shut down its Modernage chain if the sales aren’t successful.

The promotions are called the “Save our stores survival sale,” a name chosen by Planned Furniture Promotions, which is running the event. So far, results have been “satisfactory, but not terrific,” said Leath CEO Ron Phillips.

“Business remains a struggle for everyone” in the market, he added.

Leath has a total of seven Modernage stores, five of them in South Florida. Two stores further north, in Stuart and Vero Beach, Fla., are said to be doing better than the South Florida units and aren’t participating in the sale.

A story on the Miami Herald’s Web site said Modernage is “on the verge of going out of business.” Leath Chief Financial Officer Barbara Snow told the newspaper that if the sales — running 30 to 60 days — aren’t successful, the company will have to “look at its options,” including closing.

“If the high-impact sales don’t work, there is that possibility,” Phillips told Furniture/Today. But saying that Modernage is on the verge of going out of business is premature, he added.

Phillips also confirmed that Fort Lauderdale-based retailer City Furniture is picking up the lease on the Modernage Fort Lauderdale store, noting that Leath didn’t plan to renew that lease.

Also, the company probably won’t be renewing the lease on its north Dade County location on the Palmetto Expressway. That lease also is coming up for renewal.