Daily News Archive
Brought to you by Home Furnishings Business
June 12,
2008 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on June 2008
Crate and Barrel and DonorsChoose.org have received the Silver Halo Award from the Cause Marketing Forum for a program that has provided more than $700,000 to public school classrooms since 2006.
The award, the highest honor in cause marketing, recognizes a program created by DonorsChoose.org that enables individuals to fund classroom projects submitted online by public school teachers. Chicago-based Crate and Barrel, which operates 160 stores, distributed more than 128,000 DonorsChoose.org Giving Cards to its customers as a thank-you for their business, and those cards were used online to help more than 400,000 students.
According to the Crate and Barrel announcement Thursday, the company found that customers spend more at Crate and Barrel following a DonorsChoose.org experience, and see the company as more community-minded than before.
“The positive responses from our customers have been tremendous, and we are excited to continue our partnership with DonorsChoose.org,” said Crate and Barrel CEO Barbara Turf, who said the company will continue the program in 2008.
June 12,
2008 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on June 2008
Restoration Hardware shareholders overwhelmingly approved the sale of the 110-store chain to a private equity firm, Catterton Partners, for $4.50 per share Thursday.
“We are pleased with the outcome of today’s vote and appreciate the strong support demonstrated by our shareholders,” said President and CEO Gary Friedman in a news release that also said 99 percent of votes cast favored the buyout.
The deal is expected to close next week. The company, which operates 100 stores and 10 outlets, rebufffed an offer from Sears Holdings—at $4.55 per share—with Restoration Hardware officials saying the Sears offer was subject to more uncertainties than Catterton’s proposal.
The retailer, which posted a $19.8 million loss in its most recent quarter, has annual sales of $722 million. Its shares have ranged from $2.56 to $7.30 over the past year.
On Thursday, Restoration Hardware officials said the company had agreed to settle a shareholder lawsuit for $3.7 million. Raymond Hemming, chairman of the board’s independent committee, said the legal action was without merit, but the company settled to clear the way for the merger that provides a “substantial premium” to shareholders.
June 12,
2008 by in UnCategorized
By Home Furnishings Business in Case Goods on June 2008
Stork Craft Manufacturing, Richmond, British Columbia, has acquired the brand and trademarks of Canwood Furniture, Penticton, British Columbia.
Canwood, which makes solid pine furniture in clear lacquer finishes, had announced earlier this year that it would close its manufacturing operations by mid-July due to the strong Canadian dollar’s effect on U.S. sales, raw material costs, global competition and labor shortages.
Canwood President Mel Kemp said Stork Craft’s CEO, Jim Moore, called the company to express interest in acquiring Canwood after it announced its plans.
“Given the global size, scope and significant financial strength of Stork Craft, there was indeed a viable business approach to continue to exploit the equity of the Canwood brand as well as grow it internationally,” said Kemp, who will continue in a sales and marketing role.
“We are very pleased to add Canwood Furniture to our corporate family,” Moore said. “It is always nice to see a program come together where each company provides important synergies towards a plan of preserving a 22-year-old trusted brand such as Canwood. Moreover, for Mel Kemp to remain involved is indeed a bonus.”
Moore added that retailers can expect wholesale prices for Canwood brand goods “noticably lower” than at present, and that a quick-ship inventory commitment will support delivery service.
Stork Craft, in business since 1946, is a major supplier of juvenile furniture. The company has its own 500,000-square-foot plant in Asia, and a manufacturing partner with 3.5 million square feet of plant capacity. Stork Craft products are sold throughout North America, Europe and Asia. North American distribution centers are in Seattle, New Jersey and Vancouver, British Columbia.
June 12,
2008 by in UnCategorized
By Home Furnishings Business in on June 2008
WithIt (Women in the Home Industries Today) has named nominees for its 2008 WOW Awards. WithIt, an organization dedicated to the support and development of female professionals in the home industries, recognizes individuals each year for their contributions to the home furnishings sector.
Nominees for the Legacy Award, which recognizes a woman who has made significant lifetime contributions to the home furnishings industry, are:
• Peggy Burns, vice president, Circle Furniture
• Emily Kiker Morrow, director of Color, Style and Design, Shaw Industries
• Dianne Ray, owner, Garden City Furniture
Nominees for the Mentoring Award, which honors an executive or organization that has fostered advocacy, development or promotion of women, are:
• Mary Frye, president, Home Furnishings Independents Alliance
• Claire Goldhagen, director of merchandising, Robb & Stucky
• Ed Tashjian, vice president of marketing, Century Furniture
Nominees for the Education Award, which goes to an executive or company that has developed programs to educate associates, retailers or consumers about home furnishings, are:
• Kim Green, director of sales training, Drexel Heritage
• Joanne Pier, industry consultant
• Jackie Hirschhaut, vice president of public relations/marketing, American Home Furnishings Alliance
Nominees for the Future Leader Award, which recognizes a woman under 40 who has demonstrated outstanding achievement and the potential to become an industry leader, are:
• Christy DiFoggio, president, Genre Brand Communications
• Ricki Stark, director of retailer relations, PROFITsystems
• Mary Leigh Wallace, vice president, RLF Communications
Winners will be honored at a dinner ceremony on August 13, during this year’s Education Conference, August 12–14, in Charlotte, N.C. at the Renaissance Charlotte Suites Hotel.
Additional event information and conference registration is available through www.withit.org or by contacting Sara Lyke, executive director, at 336-880-2188.
June 11,
2008 by in UnCategorized
By Home Furnishings Business in on June 2008
Consumer spending in June increased a slight blip, according to the latest Deloitte Research Leading Index of Consumer Spending.
The shift broke the free-fall the Index, which tracks consumer cash flow and spending, has experienced since October.
The Index, comprising four components—tax burden, initial unemployment claims, real wages and real home prices—increased to 1.62 percent, from a revised gain of 1.26 percent a month ago.
“The upturn in the Index is a result of key indicators performing relatively better than in previous months,” said Dr. Ira Kalish, Consumer Business director, Deloitte Research. “The tax burden decreased, and we saw a lower decline in real wages compared to the previous month. However, house prices continue to pull the index down sharply and a weak employment situation is the key risk for consumer spending in the months ahead.”
Highlights of the Index include:
• Tax Burden: The average income tax rate continues to fall and is the only factor contributing positively to the Index on a sustained basis.
• Initial Unemployment Claims: Labor demand weakened significantly with job losses totaling 260,000 between January and April. The unemployment situation is a headwind for spending with expectations for an increase in the unemployment rate this year. Job losses were widespread in construction, manufacturing, professional and business services and retail trade sectors.
• Real Wages: Real wages declined in April, but at a lower rate than the previous month. The rate at which consumer prices are increasing has slowed in the first four months of this year compared to 2007. The outlook for real wages is negative due to the sustained increases in energy and food prices.
• Real Home Prices: Home prices fell 9 percent in April and the pace of home price declines is slowing; however, a recovery is not in sight, with enough housing inventories built up to last 10 months at the current sales pace.
“Federal income tax rebate checks helped consumer spending in May, and retailers that offer incentives to spend those checks could benefit this summer,” said Stacy Janiak, the U.S. Retail sector leader at Deloitte. “Consumers are being frugal and holding back discretionary spending—they continue to focus on the basics, which is helping discounters, wholesale clubs and drug stores. Retailers will need to continue to aggressively woo consumers and find creative ways to present their merchandise in order to get their share of consumer spending.”