Archive for May, 2010
May 31st, 2010 at 07:00am
Under Furniture News
In a private placement, Furniture Brands International contributed 2.3 million common stock shares to the company’s pension plan. The shares are valued at over $15.6 million and were contributed by the company in consideration of the reduction in future funding obligations.
According to a regulatory filing, the company’s shares were valued by an independent firm for the purposes of the contribution at $6.79 per share. That valuation includes a discount from the price due to several things including the temporary restrictions placed on trading shares. The company will be filing a registration statement and has chosen Evercore Trust Co. NA as their independent investment manager.
Furniture Brands International said that it has previously contributed around $5 million this year alone. The majority of the plan contributions for 2010 are eligible for tax loss carryback treatment. And, the company anticipates an extra cash tax refund of around $7 million this year.
By MCC
May 30th, 2010 at 07:00am
Under Furniture News
Furniture executives have been analyzing the effect that the closing of Dow Chemical Company’s TDI plant will have on the home furnishings industry. They’ve been debating whether or not the closing will have a direct effect on the pricing rates for raw materials.
TDI, toluene diisocyanate, is a chemical produced at the plant that is used to make foam that is used in upholstery cushions and other products. Dow has scheduled the closing for the second quarter and the furniture industry is anticipating what the decision to close the plant will bring.
Back in December, the company announced that it would be cutting 5,000 jobs, closing 20 plants and selling off seven of their businesses to save $700 million this year. Dow said the plant is being eliminated because it is no longer economically viable to manufacture TDI.
The demand in the United States has been decreasing because of the strong competition from China. Furniture executives are hoping that the closing of the Dow plant won’t have the same effect on the industry that the closing of a Louisiana TDI plant had. The Louisiana plant closed because of hurricanes and it resulted in a dramatic increase in the prices of TDI.
By MCC
May 29th, 2010 at 07:00am
Under Uncategorized
The 4th annual Midwest Furniture Show hosted by the Midwest Furniture Club will be held in Schaumberg, Illinois on August 11 and 12. Because the venue has became so popular, this year’s show will feature over 66,000 square feet of space. Currently, there are over 25 new vendors that are on the 2010 waiting list.
Current president and co-founder of the show, Geoff Weed, said that the timing of the show should benefit retailers that attend. “Coming the week after the Las Vegas Market is a blessing for our attendees. Our retailers will have the opportunity to see all the new introductions and manufacturer initiatives fresh from Las Vegas and begin planning for the all-important fourth quarter.”
The show has consistently grown since it’s launch in 2007. In 2009, there were over 700 retailers that attended. The majority of those attendees came from Illinois, Indiana and Wisconsin. But, retailers came from as far as Vermont, Florida and Toronto. The show serves a wide variety of retailers from across the Midwest, especially in Chicago which is the third largest furniture market in the nation.
If you are interested in more information about the Midwest Furniture Show you can contact the shows coordinator, Michael Moore at 708-642-4235. You can also get more information at the club’s website at www.midwestfurnitureclub.com.
By MCC
May 28th, 2010 at 07:00am
Under Furniture News
Down and feather bedding producer Downlite just announced plans to expand it’s West Coast production by opening a new plant in Phoenix, Arizona. The company based in Mason, Ohio said construction on the new facility will begin soon with an estimated completion date of November. Downlite is one of the leading suppliers of down filled comforters and pillows. But, it also produces lines of mattress pads, blankets and feather beds.
The company said it is pleased to be expanding its footprint in the United States. “Downlite is well aware of the issues that exist in manufacturing in the U.S.,” said James Lape, CEO of Downlite. “Our company has been fortunate to have pillow programs that have excelled at rate of sale, providing profit to our retail partners. We need to have additional production to service the growth in demand.”
By MCC
May 27th, 2010 at 11:48pm
Under Furniture News
Southern Motion, a motion upholstery producer will soon begin work on an expansion of it’s Pontotoc, Mississippi plant. The new expansion will feature 180,000 square feet and is expected to add around 200 new jobs over the next two years. The new project will make a total of 680,000 square feet that includes a production area, warehouse and office space.
“We are excited about our new expansion, which is a tribute to the dedication and hard work of the entire Southern Motion family,” said Roger Bland, Southern Motion president. “We have been very fortunate to grow our business in Mississippi, and our latest expansion will allow us to continue our commitment to manufacturing quality, American-made motion furniture.”
The company worked with the Mississippi Development Authority to complete plans for the expansion. The Development Authority is even providing funds for public infrastructure improvements. This is the company’s third plant expansion in the past two years. Earlier this year, new production lines added 70 more jobs and a similar project last year added 65 jobs.
By MCC
May 25th, 2010 at 07:00am
Under Furniture News
High Point Market Authority and WGSN, style and trend forecaster have partnered to share content under a new agreement. The Market Authority will be sharing both trend and research content with WGSN on their website at www.wgsn-homebuildlife.com. The website is already active but is lacing in content.
The new information will allow the website to become a trend forecasting and product development tool for all home and interior industries. The website will be helping the High Point Market visitors by providing a reference with color direction, images and downloadable product designs. WGSN will also be offering unique branded content for the High Point Market’s website at www.highpointmarket.org.
According to the High Point Market Authority, WGSN has been associated with the apparel fashion for a long time. WSGN analyzes both current and future style trends and provides visitors with online tools that they can use to create products and services. WSGN announced that it will focus it’s coverage on product trends, trade shows and analytical and buyer relevant retail coverage.
By MCC
May 24th, 2010 at 07:00am
Under Furniture News
Mega Group USA, a home furnishings buying group has announced that it will be showing at the Las Vegas Market. The showroom will be located in the World Market Center’s Building B and consists of 5,000 square feet. The group plans to use the space to showcase several of their programs including their exclusive Paula Deen Mattress Collection manufactured by Serta.
The Las Vegas summer market runs between August 2nd and 6th. “The Paula Deen collection has been a tremendous success with our current members, and we look forward to presenting it to others,” said Jerry Honea, the group’s director and chief operating officer.
The group will also feature another exclusive, the Dreamhaven Mattress collection from Serta. Their showroom will also feature a home theater seating area with 3D television technology from brands like Toshiba, Mitsubishi and Samsung. Mega Group USA currently has 1,500 retail members and 2,500 stores.
By MCC
May 23rd, 2010 at 07:00am
Under Furniture News
Contract furniture source, American of Martinsville and it’s sister company Barcalounger, a upholstery producer filed for Chapter 11 bankruptcy protection. The joint filings come just over a month after the two companies closed down their Martinsville, Virginia factory.
The parent company, Hancock Park Capital has already made an agreement to sell both companies to another affiliate for $1.5 million. But, the pending sale will have to be approved by the bankruptcy court. If approved, the court will conduct an auction of the companies if another bidder comes forward.
According to the court documents, the two companies have experienced operating profits that were significantly lower than anticipated over the last two years. “Due to the downturn in the economy and furniture sales in general, the debtors have been unable to maintain adequate profits to continue as a going concern,” Chapman’s statement read.
The Chapter 11 filing included a list of the 30 largest unsecured creditors. Aside from Hancock Park, the largest claim that was unsecured was with Globe Express Services a logistics provider for $619,000. Other key unsecured creditors include leather supplier, Moore and Giles for $123,151 and foam supplier, Carpenter Co. for $139,557.
By MCC
May 22nd, 2010 at 11:37pm
Under Furniture News
The World Market Center has just launched five brand new websites that are part of their new integrated online platform. The sites will enable users to build their own customized market planning tools and help them connect with communities from all across the home furnishings industry.
The newly designed websites include a completely new corporate website at www.wmclv.com and four dedicated websites for each one of the four markets that the market center sponsors.
Las Vegas Market - www.lasvegasmarket.com
Gift and Home - www.giftandhomelv.com
Vegas Kids - www.vegaskidslv.com
Inspiredesign - www.inspiredesignlv.com
Those five new websites are being integrated with the World Market Center existing website for the Las Vegas Design Center located at www.lvdesigncenter.com
By MCC
May 21st, 2010 at 09:34pm
Under Furniture News
Simmons recently redesigned the Beautyrest section of the company’s website to better reflect the feel and look of the new line which will enter retail stores this month. The Beautyrest line will be celebrating it’s 85th anniversary this year. The revamped website section features new photos, videos and tool tip boxes on a clean a simple page.
There is new information about the newest Beautyrest collection that is presented in a way designed to grab consumers attention. The site now contains new multimedia elements that will help consumers find the perfect mattress for their specific sleep needs.
“We know that the Internet is a key research tool for consumers during the mattress-buying process,” said Tim Oakhill, Simmons’ executive vice president of marketing. “By explaining the collection’s new BeautyStyle aesthetics and BeautyFeel comfort construction, the new Beautyrest site helps consumers familiarize themselves with the line’s features before they ever step foot into a retail store, so they feel more comfortable making a decision to purchase.
“Our goal for the site is to create brand preference, so when consumers go mattress shopping, it’s not a question of whether they buy a Beautyrest, it’s a matter of which Beautyrest model they buy,” he said.
By MCC
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