Daily News Archive
Brought to you by Home Furnishings Business
June 18,
2007 by in UnCategorized 
By Home Furnishings Business in on June 2007
Fire Department officials in Charleston, S.C., confirmed that at least nine people died in a fire at a furniture store, according to the Associated Press. Arson was not suspected.
The fire started around 7 p.m. Monday in the Sofa Super Store and warehouse in Charleston. The building collapsed while firefighters battled the blaze, and the search was still continuing for other possible victims.
Charleston Mayor Joe Riley told AP he believes all the store’s employees escaped the fire. At least one worker and two firefighters were taken to the hospital.
Riley had a press conference scheduled for Tuesday morning at 7 a.m. to discuss the fire.
June 18,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on June 2007
Moody’s Investors Service, New York, announced Monday that it has downgraded the rating of Furniture Brands International, St. Louis, in a move that could increase the company’s borrowing costs. After dropping the furniture manufacturer’s ratings from Ba1 to Ba3, Moody’s officials also said it is continuing to review the company for possible further downgrade.
“The downgrade reflects our concerns over the continuing softness across all brands, which has been more severe than originally expected,” said Kevin Cassidy, vice president and senior analyst, Moody’s. “This weakness coupled with the heavy discounting to reduce inventory levels, will result in credit metrics that are no longer consistent with a Ba1 rating, and we do not expect the company credit metrics will return to its previous levels in the next couple of years.”
In May, Furniture Brands said it is in negotiations to amend its credit facilities to gain less restrictive terms. Cassidy said those negotiations could result in increased borrowing costs. In addition, Cassidy said Moody’s ongoing review of Furniture Brands will “focus on our assessment of the company’s new senior management” in view of the recent hiring of Ralph Scozzafava as CEO designate and the announcement that longtime Chairman and CEO Mickey Holliman is retiring. Holliman will relinquish his CEO post on Jan. 1 and step down from his role as chairman on May 1.
According to published reports, Scozzafava will receive a salary of at least $700,000 annually and will also receive company stock and stock options as part of a compensation package. Scozzafava was formerly vice president of commercial operations for gum manufacturer Wm. Wrigley.
Earlier this month, 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. In April, the company said it is cutting 330 jobs jobs to produce savings of about $13 million a year.
June 18,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on June 2007
National Bedding Co., the largest licensee of Serta International, Hoffman Estates, Ill., has acquired a Serta manufacturing plant in St. Leonard, Quebec. All 70 employees of the Montreal plant, which opened in 1982, will remain employed with Serta International.
In an announcement Friday, Serta said delivery and service to local retailers will continue without interruption.
“We are excited for this opportunity,” said James Polark, chief financial officer for Serta International. “Our goal has always been to grow our retailers’ business, and this will continue to be the goal for us and our retail partners serviced by the Montreal plant.”
National Bedding Co. owns 19 of 24 Serta U.S. manufacturing plants, and now owns two of the four Canadian Serta manufacturing plants.
June 18,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on June 2007
If you’re planning on opening a store in New Zealand, best watch what you call a sale.
From our international desk today, an Auckland, New Zealand, leather furniture retailer has been fined a total of NZ$36,000 over misleading claims about the ‘sale’ price of furniture.
In Auckland District Court Tuesday, 230 Marua Limited was found guilty on six charges of breaching the New Zealand Fair Trading Act by advertising furniture as being “on sale” when the price was the same before, during, and after the “sale”; and claiming that leather lounge suites on sale for NZ$3,000 were sold by other retailers for NZ$6,000 when this was not correct.
Commerce Commission Director of Fair Trading Deborah Battell said that any claims about so-called sale prices must be accurate and that comparisons about the prices charged ‘elsewhere’ must be accurate.
In this case, 230 Marua company director Naresh Shukla had shown customers copies of leather lounge suites advertised by other retailers including Harvey Norman, Farmers and Danske Mobler, comparing his prices with theirs.
“Mr. Shukla claimed that customers would pay (NZ)$6,000 elsewhere for a leather lounge suite that only cost (NZ)$3,000 at 230 Marua, but the Commission found that the more expensive leather lounge suites sold by other retailers were better quality,” Battell said. “By making this comparison, the company was clearly intending to gain a competitive edge over other companies.”
June 17,
2007 by in UnCategorized
By Home Furnishings Business in Upholstery on June 2007
Sam Moore Furniture has named two executives to key sales and merchandising posts.
Frank Richardson has been named vice president of sales, and Erin Dooley has been named vice president of merchandising for the upholstery producer. Both report to Mike Moldenhauer, Sam Moore president and chief executive officer.
In addition, Maureen Delauter, who had been assistant merchandise manager, has been promoted to merchandise manager and reports to Dooley.
“While in the past we have had one individual responsible for both sales and merchandising, we are establishing more clarity and specialization going forward by having separate leadership for the vitally important functions of merchandising and sales,” Moldenhauer said.
Richardson joins Sam Moore as head of sales after 14 years with Hooker Furniture, most recently as national sales manager.
“Frank’s strong relationships with the sales rep force and our mutual customers, along with his extensive knowledge of the operations and culture of Hooker, will enable him to make an immediate positive impact,” Moldenhauer said. Richardson will be responsible for “charting, measuring, managing and motivating” the sales rep force, he said. He added that Richardson’s knowledge of Hooker’s wood furniture operations should help tie Hooker and Sam Moore closely together with fluid communications that will help realize marketing synergies between the two companies.
Dooley is rejoining Sam Moore as head of merchandising after serving in merchandise management at the company for about seven years in the recent past. She has a degree in fashion merchandising from Virginia Commonwealth University and has held past management positions with Dillards and Eddie Bauer. Dooley will be responsible for product development, fabric selection, pricing, retail promotions and showroom display.
Delauter, a graduate of the Home Furnishings Marketing program at High Point University, has been with Sam Moore since 2005. She will work with Dooley in product development and showroom display.