Archive for March, 2009
March 31st, 2009 at 07:36am
Under Furniture News
After an already rough year to say the least, Select Comfort was dealt another hard blow when their auditor expressed doubts of the companies ability to continue operations. The harsh statement means that in the very near future, the company may run out of funds to support it’s day to day operations.
New financing needs to be located to keep the company afloat. The company is already trying to attain more capital by issuing some new debt or equity securities, a proposition that may not see much success with the current state of the economy.
If Select Comfort no longer has the funds to operate, the company could risk being in default under their Credit Agreement. Default would lead to the company no longer being able to continue productions.
Earlier this month Select Comfort received a $23 million federal tax refund which could have kept the company running, but the lender required that money to be placed in escrow until possible avenues of new financing are negotiated.
The ailing company has already taken steps to reduce overhead by cutting their capital expenditures and advertising costs and closing at least 55 retail stores. It’s too early to tell whether or not these cuts are going to be enough to save the company.
By slone
March 30th, 2009 at 07:11am
Under Furniture News
The former Stanley Furniture plant located on West Center Street in Lexington, North Carolina has been purchased by the father and son team that owns DDC Investments and D.H. Griffin Companies. However, DDC Investments is listed as the new owner.
One of the services provided by the D.H. Griffin Companies is demolition, but the new owners say they haven’t decided what they want to do with the property yet. Although, the businessmen have announced that they are exploring their opportunities and have several ideas.
In July 2008, Stanly Furniture announced that the Lexington facility would be closing, a closing that eliminated 350 jobs in the area. The plant has at one time been a Burlington Industries textile plant and was operated by the United Globe Furniture Company before Stanley Furniture took over the plant in 1986 .
By slone
March 29th, 2009 at 10:36pm
Under Furniture News
This year’s High Point Market Kickoff party will be relocating to the Commerce lobby of the International Home Furnishings Center. The party being held on Friday, April 27th will begin at 5:30 p.m. and last until 7:30 p.m. and everyone that will be attending the market the following day is welcome to join the party.
Some of this years sponsors include Alexander Julian, Zenith Global Logistics, Vaughan-Bassett and Aspenhome. Along with Furniture/Today, the High Point Market Authority and the IHFC will be co-hosting the event.
By slone
March 28th, 2009 at 07:16am
Under Furniture News
The International Home Furnishings Center at the High Point market in April will be the debut for Coast to Coast Imports. The company specializes in accent products and has a 100,000 square foot warehouse that is located in Memphis, Tennessee.
The central location is credited for their ability to be able to ship products much faster than their competitors. The company, newly formed last year has a line that will include chests, media cabinets, tables and chairs among other items for the home.
Company president, Mat Marsh said that a lot of the items they provide are hand painted in muted tones and have lot’s of wood and veneer. He also reports that their prices fall in the middle range and hopes to capitalize on their ability to ship product quicker than other stores.
By slone
March 27th, 2009 at 07:34am
Under Furniture News
Bassett Furniture Industries Inc. recently reported that none of it’s top five executives received a raise in 2008 and only one received a bonus. But, Furniture Brands is staunchly defending their generous treatment of the companies top executives.
While Furniture Brands laid off 1,400 workers in the United States in just one month and closed their plant in Pontotoc, laying off another 200 people, they dished out over $10 million in bonuses to executives. The company is defending the bonuses even though it stocks and earnings were both badly suffering during 2008.
JOhn Hastings, company spokesman said the bonus pay wsn’t based on the companies earnings, it was based on their free cash flow. At the same time, the company reported a loss of over $415 million for the year.
By slone
March 26th, 2009 at 07:25am
Under Furniture News
Hendricks Furniture recently announced the top 100 company will be closing two of it’s stores located in North Carolina. The stores in the Charlotte, Lake Norman and Raleigh ares will be consolidated in with other Hendricks stores.
Earlier this year, the company began restructuring and closed two other stores that were losing money. Those two stores were located in Naples and Fort Myers and were operated under the name Norris Furniture and Interiors. The two warehouses that supported those stores were also closed.
The company plans to revamp another store, Boyle’s Distinctive Furniture in Mocksville, North Carolina by adding a company wide outlet center as well as a rug center. The companies Boyle’s store in Raleigh will conduct a weekend moving sale and then transfer any remaining inventory, as well as customer accounts to the High Point location.
There will be a month long moving sale at the Charlotte, Lake Norman store and remaining inventory and customer accounts from that location will all be transferred to the Carolina Place, Pineville store on the south side of Charlotte.
By slone
March 25th, 2009 at 07:52am
Under Furniture News
Western Home Furnishing Association named Naturwood it’s 2009 Western Retailer of the Year. Naturwood started out in Seatle in 1946 as University Furniture-Home of Naturwood Products, but moved to Sacramento in 1948 and became simply Naturwood Furniture.
The company has served the greater Sacramento area for 61 years and was chosen for the award based on personal business achievements, company leadership, community service and it’s contributions to the furniture industry.
Originly, the company focused on unfinished furnishings, but ventured into the finished furniture industry in the late 1970’s. During the early part of the 1980’s, the store relocated to Rancho Cordove. And, now operates an 87,000 square foot showroom, the largest retail furniture showroom that is located in northern California.
By slone
March 24th, 2009 at 11:50pm
Under Furniture News
With stocks trading at below a dollar in recent weeks, Select Comfort has announced the closing of at least 55 stores this year. The bedding manufacturer was among the first companies that began to feel the sting of nervous consumers who are no longer able to make high ticket purchases.
The company ended the fourth quarter with sales that had plunged 31 percent resulting in over $57 million in losses. At the same time last year, the company ended the same quarter with $2.2 million in profits.
Select Comfort CEO, Bill Mc Laughlin said that he is focusing on preserving cash, reducing costs and reigniting interest in the Sleep Number brand. But, the first quarter ended with the companies cash slumping to $13 million and outstanding debts of over $80 million!
By slone
March 23rd, 2009 at 10:14pm
Under Furniture News
Mississippi Furniture Association representatives met with House Speaker Billy McCoy to talk about legislation that would help struggling furniture manufacturers through a tax break. The new legislation would provide manufacturers with a $2,000 tax credit for each one of their cut and sew jobs.
A lot of these jobs are being lost to foreign manufacturers where their employees work for a much lower rate. Although, the outcome is yet to be seen, McCoy did say that they were giving the matter full consideration.
However, House Ways and Means Chairman, Percy Watson, questioned just how effective the tax credit would be in actually helping the struggling furniture industry. He also stated that he didn’t expect to be bringing the new legislation up for consideration.
If passed, the legislation could save as many as 5,000 cut and sew jobs in the state and help in creating an additional 1,500. The credit could also generate around $4.2 million in net gain for the state. Although, there is no guarantees that it would save jobs or generate the estimated amount of revenue.
By slone
March 10th, 2009 at 07:20am
Under Furniture News
Serta came out ahead of all of it’s rivals in 2008 with a 10 percent increase in sales! Sales were initially forecast to drop by 11.8 percent, which shows how amazing the growth was in spite of the economy and struggling competitors.
Serta President, Bob Sherman sites the companies growth to several things including the fact that they’ve added more retailers to their growing list of dealers. He also says they helped improve the margins of existing retailers by providing exclusive bedding products.
The company continues to go after new accounts and has already just recently acquired even more. Hopes are high for another year of growth thanks to a licensing agreement between Serta and Donald Trump to introduce a new line of Trump mattresses!
By slone
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