Daily News Archive
Brought to you by Home Furnishings Business
July 4,
2007 by in UnCategorized 
By Home Furnishings Business in High Point on July 2007
The EcoStyle Pavilion in High Point’s Suites at Market Square will double in size for the fall High Point Market, Oct. 1-7. The showcase, a partnership between Suites at Market Square owner Merchandise Mart Properties Inc. and the Sustainable Furniture Council, features home furnishings made with sustainable processes and materials.
“We were thrilled when MMPI approached us before the last High Point Market to build the first eco-friendly home furnishings pavilion for the residential market,” said Gerry Cooklin, founder and CEO of South Cone Trading Company and president of the Sustainable Furniture Council. “The reaction we have had since then has been overwhelming, and we are looking forward to expanding our efforts at the Fall High Point Market.”
SFC membership has grown from 43 members to 85 members since spring High Point market, noted Susan Inglis, president of From the Mountain and treasurer of the Sustainable Furniture Council.
The EcoStyle Pavilion will again be located on the first (top) floor of the Suites at Market Square and will provide a centralized location for companies to showcase their eco-friendly products to buyers seeking sustainable products.
“Based on the positive response coming out of last market when we launched our eco-friendly pavilion, we have doubled the space for this upcoming Fall Market,” said Karen Olson, vice president of marketing for Merchandise Mart Properties. “We have no doubt we will fill this space.”
Participants in the pavilion will benefit from a comprehensive marketing program that includes direct-mail pieces to more than 60,000 buyers, trade advertising in all key publications, a special section in market directories, telemarketing, and email marketing outreach.
MMPI and the Sustainable Furniture Council will again produce the EcoStyle Map to help buyers find green products at High Point Market. There will also be a party in the Century Courtyard in Market Square on Thursday, October 5 to celebrate the importance of green in the residential home furnishings industry.
July 4,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on July 2007
Furniture Brands International, St. Louis, has struck a deal for a proposed revolving credit facility of up to $600 million, the company disclosed in a regulatory filing Tuesday. The filing with the Securities and Exchange Commission states the company entered into a commitment letter June 22 with J.P. Morgan Securities and JPMorgan Chase Bank.
The proceeds of the proposed credit facility, which is subject to closing conditions, would be used to refinance the company’s existing credit facility and for general corporate purposes.
In May, FBI officials said the company was seeking to amend its credit facilities to gain less restrictive terms.
In June, Moody’s Investors Service, New York, announced that it had downgraded FBI’s rating from Ba1 to Ba3, Moody’s officials also said it will continue to review the company for possible a further downgrade, citing concerns over continuing softness across all of FBI’s brands.
Also in June, Furniture Brands announced it expects sales in its second quarter to be down by 12 percent, an improvement over an earlier forecast that predicted a 15 percent decline. It expects to report second-quarter earnings August 1. In April, the company announced the elimination of 330 jobs to produce savings of about $13 million a year.
July 4,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on July 2007
Bassett Furniture Inds., Bassett, Va., reported second-quarter 2007 sales of $75.4 million, a 14 percent drop from the same period last year, and a loss of $2.4 million.
The loss for the second quarter of 2007, which ended May 24, included several non-recurring charges such as severance costs related to the Bassett plant closure, lease exit costs related to three closed stores, and a leasehold improvement asset impairment related to downsizing the company’s wholesale showroom. Excluding the effects of these charges, the Bassett’s net results for the quarter would have been basically a breakeven, which represents a $2 million improvement over the results for the first quarter of 2007.
The Bassett Furniture retail store program had 133 stores (104 licensed and 29 company-owned) in operation at the end of the second quarter. Two stores were opened during the quarter and one store was closed. The company expects three to four new stores will be opened in the second half of the year.
“These are truly difficult times for our industry and our results for the second quarter reflect that,” said Robert H. Spilman Jr., Bassett president and chief executive officer. “We continue to believe the initiatives we have in place to improve our store program combined with actions we have and are taking to reduce our cost structure will make us a better company and coupled with a better overall retail environment should lead to improved operating results. An additional challenge will be repositioning our upholstery fabric line in light of the recent financial difficulties of two of our key suppliers.”
Net sales for our wholesale segment were $63.4 million for the second quarter of 2007, 16 percent below the $75.4 million sales level attained in the second quarter of 2006.
For the first half of 2007, approximately 72 percent of wholesale shipments were to Bassett stores compared to 69 percent in the first half of 2006. Additionally, approximately 46 percent of wholesale shipments in the first half were imported products compared to 44 percent in the first half of 2006.
The wholesale segment generated operating income of $0.4 million in the second quarter of 2007 as compared to $3.4 million of operating income in the second quarter of 2006. This decrease in operating income was primarily attributable to the reduction in sales volume and partially due to wind-down costs associated with closing a wood manufacturing facility in Bassett, Va.
The company expects that the closure of the Bassett plant and a corresponding shift to more imported products will result in annual improvements beginning in 2008 to operating income of $3 million to $4 million per year after factoring in expected sales reductions. Additionally, the Company has targeted another $3 million to $4 million of annualized operating expenses, primarily in the areas of marketing, distribution, and sales and administrative support, it is currently in the process of reducing.
Bassett’s 29 corporate stores continued to experience relatively soft conditions at retail with sales of $21.9 million in the second quarter of 2007 as compared to $20.9 million in 2006.
The retail segment incurred an operating loss of $2.7 million for the quarter compared to an operating loss of $2.6 million in 2006. The 2007 loss included approximately $400,000 in start-up related losses associated with two Boston area stores which were acquired at the beginning of the second quarter. Plans are in place to increase retail division gross margins, fully integrate the Boston stores into the Retail segment, and further reduce retail administrative expenses in the second half of the year.
July 2,
2007 by in UnCategorized
By Home Furnishings Business in Upholstery on July 2007
Struggling Quaker Fabric Corp., Fall River, Mass., announced Monday that it is likely the company will liquidate and sell its assets after its annual shutdown period, which began Monday and runs through July 15. The company provides yarns and fabrics to hundreds of furniture companies.
The announcement comes after company officials determined it has not met requirements for committed borrowings under its existing lending agreements, so future loans will occur at the discretion of its lenders. In February, Quaker announced annual sales of $151.7 million and a net loss of $37.6 million following a $26.3 million loss the previous year. Results in 2006 were negatively affected by restructuring efforts that included shutting domestic manufacturing factories—as domestic fabric sales dipped 29 percent during 2006. Restructuring efforts have also included shifting efforts to the outdoor and contract markets that are less vulnerable to Chinese imports.
Monday’s announcement said the company is continuing to seek debt and equity financing, but a statement expressed “significant uncertainty” about its ability to continue its operations after July 15. The statement added that a liquidation would not generate enough to make any payment to holders of its common stock. According to Hoovers.com, Quaker had 1,655 employees in 2005.
When the company reported a drop in sales and a $5.1 million net loss in its first quarter in April, President and CEO Larry Liebenow said the company was making progress in its restructuring efforts, but said, “We clearly still have a lot of work to do” in returning the company to profitability by boosting sales, lowering operating costs and striking the right balance between domestic production and global sourcing.
July 2,
2007 by in UnCategorized
By Home Furnishings Business in Home Office on July 2007
Richard Diamond has joined Office Depot as vice president of furniture.
Diamond will oversee the retailer’s furniture category, which includes the Christopher Lowell Furniture collection, the Chateau Provence line and the Office Depot line of branded furniture.
Diamond has more than 20 years in merchandising and was most recently chief operating officer of Harvey Lewis Designs in Hong Kong. Prior to that, he held senior level positions at H2O Furnishings, OfficeMax and Burdines.