Hooker Furniture will Acquire Opus Designs

October 24, 2007  by in UnCategorized   

By Home Furnishings Business in Youth, Juvenile Furniture on October 2007 Hooker Furniture Corp., Martinsville, Va., announced Wednesday that it has signed a letter of intent to purchase the assets of New York-based Opus Designs Furniture LLC, a specialist in moderately priced youth bedroom furniture. The transaction is expected to close some time in the fourth quarter of the 2007 calendar year, subject to, among other things, completion of due diligence and negotiation of a definitive acquisition agreement.

Opus President of Design and Engineering James Millner, who oversees design and product development, would remain with the business.

Millner’s experience prior to Opus includes working with youth bedroom major Lea Inds., and with Magnussen Home Furnishings.

“The acquisition would provide a solid foundation for Hooker to build a strong youth bedroom program at more moderate price points, with a more comprehensive product line and with superior sourcing arrangements compared to the company’s current SmartKids youth furniture line,” said Paul B. Toms Jr., chairman, chief executive and president of Hooker. “We’re committed to youth bedroom, having entered the category around the same time Opus began in 2005, but we have struggled to become an important resource. As part of our commitment to become more competitive in the category, we looked for an established company with a solid sourcing structure and a broad product line. We believe we have found that, at slightly lower price points, in Opus.”

Opus is expected to have between $5 million and $6 million in sales in 2007, and offers around 10 groups in key youth bedroom styles, including cottage, pine, Victorian and transitional. Multiple finishes are offered on some groups.

Because of the more competitive price points at Opus, Toms believes the product line offers “a tool to help us and our retailers reach a younger customer and a broader demographic income spectrum than our current consumer base.”

By the same token, Hooker offers resources to help the Opus lines grow.

“Opus is an entrepreneurial company that has been successful, but we offer the financial backing to go to the next level and support the business with enhanced systems; better forecasting, inventory management and quality assurance; and a broad range of other resources,” Toms said. “In addition, we believe our organization is well positioned to improve service to their customers and expand sales of their product at retail.”