Daily News Archive
Brought to you by Home Furnishings Business
November 25,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on November 2007
New York-based Levitz Furniture, which was forced into bankruptcy by a credit crunch earlier this month, could have new owners as soon as Thursday after Manhattan’s bankruptcy court approved an auction that is set for Wednesday at noon. The winning bid could be approved the following day at a sale hearing overseen by U.S. Bankruptcy Court Judge Robert Gerber.
The order came despite concerns raised by some creditors over moving to an auction just more than three weeks after Levitz filed for Chapter 11 on Nov. 8. It’s the third time since 2001 that Levitz has been in bankruptcy. In 2005, Prentice Capital acquired Levitz in a similar court auction for about $70 million. According to published reports, Levitz has struggled since that time even though more than $200 million has been put into the business by its owners and investors.
The assets for sale could include retail locations, leases, merchandise and intellectual property, and other intangibles. Court motions last week also included provisions for going-out-of-business sales. The retailer has 76 stores in the Northeast and West.
Levitz’s bankruptcy earlier this month was due to “insufficient liquidity to support the company’s current operations.” The company also said the filing was part of its strategy to evaluate its options, including a sale or finding a new financial investor.
According to court documents, the company lists assets of more than $100 million and liabilities of more than $100 million. Its estimated number of creditors is listed as being between 1,000 and 5,000.
November 25,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on November 2007
HOM Furniture is opening its 12th store in a 44,000-square-foot showroom in St. Cloud, Minn. The store is set to open in the first quarter of 2008.
The store will be managed by Tim Knudson, who has been with HOM Furniture for 13 years. The new showroom will employ between 25 and 30 full-time staff.
St. Cloud has special roots for the owners and employees of HOM Furniture. Company owners Wayne Johansen and Rod Johansen began their careers and business ownership endeavors with a small import gift shop located in the city’s Crossroads Mall in 1975. The company’s corporate headquarters were also initially located in St. Cloud before relocating.
In addition to the opening of this location, HOM plans to open showrooms in Rochester, Minn., and Little Canada, Minn., later in 2008.
November 25,
2007 by in UnCategorized
By Home Furnishings Business in Mattresses on November 2007
Denver Mattress, Furniture Row’s bedding subsidiary, has upgraded its Web site,
http://www.denvermattress.com, by adding customer ratings and reviews.
With the technology provided by Bazaarvoice, current customers can share feedback about Denver Mattress products by posting reviews or using a five-star rating system that gives prospective purchasers information to make an informed decision. Denver Mattress manufacturers its own mattresses and claims its products cost as much as 50 percent less than competitors.
“Research shows that 58 percent of online shoppers prefer sites that feature ratings and review, and shoppers who read review experience 21 percent higher purchase satisfaction,” said Bill McKendry, Furniture Row’s marketing director. “That’s what this is all about.”
Furniture Row operates more than 330 stores in 31 states that include Denver Mattress, Sofa Mart, Oak Express and Bedroom Expressions nameplates.
November 25,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on November 2007
Las Vegas police said the manager of an Ashley Furniture HomeStore was killed during a robbery Friday night, according to a report from KLAS-TV.
Robert Bills, police believe, was in the store’s parking lot at the intersection of Rainbow and Cheyenne, and on his way to make a nightly deposit when a man wearing dark clothes and a ski mask approached him and then shot him. Bills got back into the store and called for help, but later died at a Las Vegas hospital.
Police are still looking for the suspect, who took no money.
Ashley Furniture is offering a $100,000 reward for information leading to the suspect, according to the report.
November 25,
2007 by in UnCategorized
By Home Furnishings Business in Retail Technology on November 2007
Retail automation vendor PROFITsystems Inc., Colorado Springs, Col., has introduced PROFITon-demand, a remote hosting serviece for home furnishings retailers.
PROFITon-demand includes 24-hour monitoring and maintenance by information technology specialists and network engineers. The new service boasts a state-of-the-art data center for high-speed data transfer and consistency, and managed firewall hardware for rock-solid, vaulted data security. PROFITon-demand began rolling out to clients nationwide last month.
PROFITsystems developed its hosting environment to be more affordable and hassle-free, compared with installing software products directly on clients’ internal computers and networks.
“PROFITon-demand is an easier way to implement and to update the software that our clients use to run their businesses profitably,” said Jeff Niskern, president. “If you are a furniture retailer, you want to focus on your furniture business. You don’t want to be an IT expert, too.”
A monthly subscription fee is the only requirement for access and covers all upgrades.
“It’s hard to keep up with all the tech stuff, especially in a tight economy” said W. Clyede Mynatt, president of The House Store in Atlanta. “Who wants to invest in computer equipment or software that is going to be obsolete in no time? Plus, I don’t want to worry that something went wrong with a nightly back up. My entire staff can access information from anywhere, so that’s another advantage.”
PROFITon-demand provides shared documents tools, which include applications such as Microsoft Office.
“PROFITon-demand fits the scale of our operation perfectly,” said Ken Sisson, owner, Domaine Fine Furnishings and Design, Calgary, Alberta. “It’s straightforward and you get everything you need versus having to establish a separate budget for software.”