Clint Engel
\nRevitalization efforts to begin<\/p>\n
WOODBURY, N.Y. \u00e2\u20ac\u201d Levitz Furniture has secured a three-year, $89 million credit line and will begin opening stores as part of its post-bankruptcy revitalization effort.<\/p>\n
The revolving credit facility through Banc of America Securities and Back Bay Capital Funding replaces a $55 million facility dating from December, when Levitz \u00e2\u20ac\u201d formerly Levitz Home Furnishings Inc. \u00e2\u20ac\u201d was purchased by Prentice Capital with Great American Group for about $92 million.<\/p>\n
<\/p>\n
Prentice subsequently closed some 34 stores and dismissed Levitz top management. Tom Baumlin, who previously had worked with Prentice, was named interim CEO and is now CEO of the retailer, which has about 78 stores, primarily in the Northeast and on the West Coast.<\/p>\n
\u00e2\u20ac\u0153This is an important milestone as we begin to aggressively implement our revitalization plans for this respected brand,\u00e2\u20ac\u009d Baumlin said in a press release. \u00e2\u20ac\u0153We have further expanded our liquidity position, roughly doubling the company\u00e2\u20ac\u2122s potential borrowing ability to ensure we have ample funds to continue to execute our vision to make Levitz Furniture the premier specialty furniture retailer in the markets in which it competes.\u00e2\u20ac\u009d
\n
\nBaumlin, who most recently operated his own consulting firm, Achilles Research, could not be reached for additional comment.<\/p>\n
Before Achilles, Baumlin was CEO of Norstan Apparel Shops, which operates the Fashion Cents retail chain. He also spent five years with retailer Footstar, where he was senior vice president of finance, and several years with Deloitte & Touche Consulting Group.<\/p>\n
He began his business career as an entrepreneur and has launched three companies, including College Concepts, a wholesaler of licensed apparel.<\/p>\n
Levitz said it is opening stores in Paramus, N.J., and in New York City\u00e2\u20ac\u2122s Staten Island and the Bronx this spring; in Summerlin, Nev., in early summer; and in Murrieta, Calif., in the early fall. A permanent Valley Stream, N.Y., store will replace a temporary location in late fall.<\/p>\n
In addition, Levitz is renovating stores in Elmhurst, N.Y., Paramus, N.J., and Anaheim and Victorville, Calif.<\/p>\n
\u00e2\u20ac\u0153This is the most recent of many important markers we have hit since we bought the assets of Levitz from bankruptcy,\u00e2\u20ac\u009d said Prentice Managing Director Jonathan Duskin. \u00e2\u20ac\u0153We have surpassed every major objective we have set since we\u00e2\u20ac\u2122ve owned the company.\u00e2\u20ac\u009d<\/p>\n
LHFI filed for Chapter11 bankruptcy protection Oct. 11, owing furniture industry creditors more than $61 million.<\/p>\n
Duskin said Levitz\u00e2\u20ac\u2122s new management \u00e2\u20ac\u0153has made tremendous strides in only a few months, restoring trade confidence and rebuilding the Levitz consumer franchise\u00e2\u20ac\u00a6. We are confident all our partners will prosper as we deliver on our promise to reinvigorate this great retailer.\u00e2\u20ac\u009d<\/p>\n
In a letter sent in March to suppliers, Levitz highlighted initiatives it has implemented since the acquisition, including aggressive advertising and customer research.\u00c2\u00a0<\/p>\n
The retailer said it expects to have some type of advertising, mostly television, almost every week this year, and said sales have exceeded expectations in five of six recent weeks.<\/p>\n
Levitz also said it has made headway on the merchandising side, \u00e2\u20ac\u0153selecting and promoting exciting new lines.\u00e2\u20ac\u009d Costs are \u00e2\u20ac\u0153being aggressively attacked,\u00e2\u20ac\u009d it said, noting that poor-performing stores have been closed, corporate overhead is down and that costs have been cut at the store level through rent concessions and other means.<\/p>\n
The company also pointed to a better financial structure with the just-announced credit facility and Prentice\u00e2\u20ac\u2122s commitment to put more than $75 million into rebuilding and repositioning the company.<\/p>\n
For the most part, suppliers said their first impressions of the new Levitz have been favorable.<\/p>\n
J.B. Davis, president and CEO of Kluassner, said his company has been impressed with Levitz management, both the new people and those who remained from the old regime.<\/p>\n
\u00e2\u20ac\u0153We\u00e2\u20ac\u2122re doing a nice job with them, and we look forward to growing our business with them,\u00e2\u20ac\u009d he said.<\/p>\n
Kevin O\u00e2\u20ac\u2122Connor, president and CEO of key supplier Legacy Classic, said he is also impressed with the early steps. He had just been through the soft-opened, 53,000-square-foot Staten Island store, and said it was bright and colorful, with furniture displayed in appealing lifestyle environments that addressed a variety or consumer tastes.<\/p>\n
\u00e2\u20ac\u0153Prentice appears to be willing to put money where its mouth is,\u00e2\u20ac\u009d O\u00e2\u20ac\u2122Connor said. \u00e2\u20ac\u0153There\u00e2\u20ac\u2122s more money being spent on accessories, store d\u00c3\u00a9cor and layout, and making it easier for a consumer to shop.\u00e2\u20ac\u009d<\/p>\n
He added that Levitz\u00e2\u20ac\u2122s \u00e2\u20ac\u0153principles have come in as people who understand retailing \u00e2\u20ac\u201d not necessarily furniture retailing \u00e2\u20ac\u201d and are applying some good business principles, but also not being so smug that they\u00e2\u20ac\u2122re saying they know how to run a furniture business. For that, they\u00e2\u20ac\u2122re turning to the talent they have both kept on and acquired.\u00e2\u20ac\u009d<\/p>\n
Jeff Cook, president and CEO Magnussen Home, said Levitz appears to be making a \u00e2\u20ac\u0153conscientious effort to get a handle on operating costs\u00e2\u20ac\u009d through moves such as closing poor-performing stores.<\/p>\n
\u00e2\u20ac\u0153We understand they have a couple of years of very difficult decision-making ahead,\u00e2\u20ac\u009d Cook added. \u00e2\u20ac\u0153We look forward to following that process\u00e2\u20ac\u009d and developing a relationship with the new Levitz team.<\/p>\n","protected":false},"excerpt":{"rendered":"
Clint Engel Revitalization efforts to begin WOODBURY, N.Y. \u00e2\u20ac\u201d Levitz Furniture has secured a three-year, $89 million credit line and will begin opening stores as part of its post-bankruptcy revitalization effort. The revolving credit facility through Banc of America Securities and Back Bay Capital Funding replaces a $55 million facility dating from December, when Levitz […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-440","post","type-post","status-publish","format-standard","hentry","category-furniture-world-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/comments?post=440"}],"version-history":[{"count":0,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/440\/revisions"}],"wp:attachment":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/media?parent=440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/categories?post=440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/tags?post=440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}