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January 27,
2010 by in UnCategorized 
By Home Furnishings Business in Legal on January 28, 2010
Fabric and ticking supplier Culp (NYSE: CFI) is seeking monetary damages and injunctive relief against competitor Gum Tree Fabrics alleging infringement of a Culp design named Palomino.
Culp has asked the U.S. District Court for the Middle District of North Carolina to stop Gum Tree Fabrics and others "acting in concert or participation" with the company from offering, distributing and selling the Gum Tree Fabric pattern named Ringo.
Culp has also asked the the court to award it damages and a disgorgement of profits wrongly reaped by Gum Tree Fabrics through its activities.
Culp is the owner of many copyrighted designs, including its Palomino design, which was awarded a copyright registration certificate from the U.S. Copyright Office. The Palomino design has been assigned Copyright Registration No. VA 1-429-919, effective June 15, 2006.
In a press release, Culp said it has tried to resolve the matter by communicating with Gum Tree by providing fabric samples, explaining the legal issues involved and trying to work out a settlement without success. The release continues to say:
"Culp has provided Gum Tree Fabrics a full demonstration of the copyright protection enjoyed by its Palomino design, and Culp stands ready to discuss the matter further if needed. Culp is prepared to resolve this matter out of court. In the end, however, Culp intends to fully protect its legal rights, as any business would do. That is the reason the pending lawsuit has been filed, and Culp will vigorously pursue its rights by whatever legal means are necessary."
January 27,
2010 by in UnCategorized
By Home Furnishings Business in Financial Reports on January 28, 2010
Bassett Furniture Inds. Inc. (Nasdaq: BSET), Bassett, Va., reported net income of $2.6 million on sales of $59.5 million for in its fiscal fourth quarter 2009, ended Nov. 28. In fourth-quarter 2008, Bassett lost $37.8 million despite sales of $61.7 million that were 3.5 percent ahead of the 2009 period.
Bassett had fiscal 2009 sales of $232.7 million, down 19.3 percent from the $288.3 million recorded in fiscal '08, which was a 53-week year. The company lost $22.7 million in 2009, compared with a loss of $40.4 million in fiscal 2008.
"The company's ongoing focus on expense reduction and working capital management began to bear fruit in the fourth quarter as we were able to post a modest profit," said Robert H. Spilman Jr., president and chief executive officer. "More importantly, perhaps, we produced $6.1 million of operating cash flow for the quarter. This marks the company's third consecutive quarter generating positive operating cash.
"Our industry remains in the grasp of a brutal sales slump," Spilman continued. "Until consumers begin to feel significantly better about the state of the economy and the safety of their jobs, we must continue to concentrate on finding ways to successfully operate at reduced sales levels. Consequently, we will once again make positive cash flow the key benchmark for 2010 as we fight for all of the market share we can garner."
During the year ended Nov. 28, 2009, Bassett acquired nine stores from licensees, one of which was acquired during the fourth quarter. In addition, the company closed four under-performing stores. The total company-owned store count as of fiscal year-end stood at 36, of which 26 were comparable stores (stores owned and operated by the Company longer than one year).
For the full release, click here.
January 27,
2010 by in UnCategorized
By Home Furnishings Business in Financial Reports on January 28, 2010
Danbury, Conn.-based Ethan Allen (NYSE:ETH) reported a net loss of $3.3 million for the second quarter ended Dec. 31, compared to a $5.5 million profit posted during the same quarter last fiscal year.
Sales for the quarter were $143 million, compared to $189.6 million in the prior year quarter. Wholesale net sales were $84.5 million versus $108.8 million for the second quarter in the previous year.
For the six month period, the company reported a net loss of $16.9 million, compared to a profit of $12.9 million during the same period last year. Sales for the first half of the year were $279.5 million, compared to $395.4 million in the prior year period.
"The challenges of the past year have provided us an opportunity to significantly strengthen many elements of our vertically integrated enterprise while at the same time increasing our cash position from June 30 by 44 percent to $76 million at December 31, 2009," said Farooq Kathwari, chairman, president and CEO.
"The consolidation and restructuring initiatives did result in lower delivered sales in the December quarter while increasing our backlogs," he said. "Our plants, retail and logistics have absorbed most of the operational changes and transition costs during the last six months. This includes the training of 274 new upholstery associates and the conversion of our case goods products to custom. We expect to significantly lower these costs in the third and fourth quarters of this fiscal year."
He continued that the company has strong marketing initiatives in place and that it plans to increase production in both its domestic case goods and upholstery.
January 27,
2010 by in UnCategorized
By Home Furnishings Business in Executive Changes on January 28, 2010
Veteran furniture and wood products industry consultant Art Raymond has joined Hooker Furniture (NASDAQ-GS: HOFT) as senior vice president of operations.
As of this Monday, Raymond will be responsible for all wood furniture corporate operations, including forecasting, supply chain management, warehousing and distribution, product quality, process improvement and customer service.
"We are extremely pleased to have Art join our company," said Paul Toms, chairman, chief executive officer and president of Hooker Furniture, Martinsville, Va. "We've worked closely with him over the last 20 years on projects ranging from manufacturing to distribution to forecasting and strategic planning. We believe he's a perfect fit for our company and culture. He's a great strategic thinker, and should hit the ground running."
Raymond brings extensive international experience in the home as well as contract furniture sectors plus cabinetry, millwork, and other value-added wood products. A graduate of North Carolina State University in wood technology, he serves as an adjunct professor for NCSU's wood products program, and is a regular speaker for industry associations such as the American Home Furnishings Alliance, the Kitchen Cabinet Manufacturers Assn. and at events such as the International Woodworking Fair.
Toms said one of Raymonds key roles will be in mentoring, as he "takes a strong group of managers and develops and prepares them for additional responsibilities."
"In this position, I will get a chance to practice what I've preached as a consultant and to implement the solutions the Hooker team develops," Raymond said. "Hooker Furniture, with its experienced management team and financial strength, is poised to gain market share as the economy recovers. To do so, we must continue differentiating our products, services, and brands."
January 27,
2010 by in UnCategorized
By Home Furnishings Business in Business Strategy on January 28, 2010
RTA producer Euro Style has partnered with Bridgeshine HK Ltd. in Shenzhen, China, to coordinate its design there.
Euro Style occupies 2,400 square feet in the Shenzhen factory. Cristiano Tomasso, president of the furniture division of Bridgeshine, formerly with the Italian manufacturer Gruppo Sintesi SPA in Italy and China, will coordinate Euro Styles design team in Italy with Euro Styles factories in China.
We are delighted to establish a strategic partnership with Bridgeshine, said director of product development and president Trig Liljestrand, Euro Styles strong focus on cutting edge design is enhanced immeasurably by Bridgeshines ability to co-ordinate our suppliers in China and our designers in Milanour new partnership is already showing amazing results.