Sauder to Focus Progressive Division on Mid-Price Imports

July 26, 2007  by in UnCategorized   

By Home Furnishings Business in on July 2007 Progressive Furniture Co., the wood case goods division of Sauder Woodworking Co., Archbold, Ohio, will phase out production of domestic laminate and veneer bedroom, and exit its Royal Patina upper-end lines by the end of this year. The streamlined operation will focus on solid pine bedroom furniture from Progressive’s Mexico plant, and low- to medium-priced wood bedroom, dining room, and occasional furniture sourced in Asia.

Dennis Ammons, Progressive’s president, announced his retirement July 2, and Kevin Sauder will act as interim president. Dan Kendrick, currently senior vice president of Merchandising, is being promoted to executive vice president of Merchandising, responsible for management of the entire product line.

Originally known for paper laminate bedroom and occasional furniture produced in North Carolina, Progressive evolved into a major manufacturer and importer of the full range of bedroom furniture in all price segments with its purchase of Royal Patina in 2005. The company’s new strategy will force the closure of the company’s Claremont, N.C., plant, which employs 330 people. Production will wind down through the end of this year, when the facility will be converted to a distribution center.

“We regret that we have to make this move, but we need to change with the new market realities,” said Kevin Sauder, president and CEO of Progressive’s parent Sauder Woodworking Co. “A division the size of Progressive should become a specialist in key market segments, and serve those customers well with great styling, service, and quality.”

The Royal Patina business unit will be offered for sale to allow Progressive to focus on its core business. These furniture lines are marketed through upper end retailers such as Robb & Stucky and Louis Shanks. Royal Patina has an experienced sales and merchandising staff, solid Asian manufacturing resources, and a design team in Cebu, Philippines.

Progressive’s restructuring will also generate new synergies and working relationships with Sauder Global Sourcing, Sauder’s import RTA division. These divisions will share the new Sauder Asia headquarters in Southern China, headed by Mitch Helm, formerly of Gruga-Novimex Seating, a recent Sauder acquisition. The multiple imported furniture lines will pool resources such as supply chain logistics, sourcing, and quality control to provide valuable service to their retail customers.