Daily News Archive
Brought to you by Home Furnishings Business
May 29,
2007 by in UnCategorized 
By Home Furnishings Business in Motion Upholstery on May 2007
A jury in Mississippi has awarded more than $9.4 million in damages to four former Franklin Corp. factory workers suffering medical problems stemming from limited protection and ventilation from glue fumes in the company’s Houston, Miss., factory, according to the
Clarion Ledger.
The jury awarded $1.925 million in compensatory damages and punitive damages of $7.5 million to the four employees who worked for the company between 1999 and 2004. A judgment in the case has not yet been handed down.
According to the newspaper report, the workers had repeatedly asked the company whether the adhesive used on foam cushioning was causing dizziness, nausea, laryngitis, coughing, headaches and other medical problems.
The glue Franklin used from 1999 to 2004 contained propyl bromide, a chemical known to potentially cause nervous system damage, brain damage, main organ system failure, liver and kidney failure. Labeling for the chemical says it should be used in adequately ventilated areas with respiratory protection.
Heber Simmons III, the attorney for the workers, told the paper that a plant safety expert informed the company in 2001 that workers on the glue line were being overexposed to the chemical. Simmons said the expert suggested changing glues or installing a ventilation system, providing training and protection for workers, and monitoring of the air. None of the recommendations was followed, Simmons said.
In 2004, the Occupational Safety and Health Administration tested the factory for the amount of propyl bromide in the air. The tests showed that the exposure was 17 times the recommended maximum human exposure limit for the chemical, Simmons told the paper.
After the OSHA tests, Franklin changed to a different adhesive and installed a ventilation system, Simmons told the paper.
A court hearing on Franklin’s net worth and application of the tort-reform caps on punitive damages is scheduled for Thursday.
May 29,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on May 2007
J. Scott Ostrander has been named president of Riverside Furniture as part of a new structure for the company’s senior management team.
Ostrander succeeds longtime president Howard “Buddy” Spradlin, who remains the company’s chief executive officer.
“Scott has provided great leadership at Riverside, in both operations and product development capacities,” Spradlin said. “His appointment to president acknowledges those contributions, as well as his leadership abilities.”
Ostrander joined the company in 1987 and has been promoted to roles of increasing responsibility since then. In March 2006, he was promoted to chief operating officer. For the past seven years Ostrander has been a member of the American Home Furnishings Alliance as a director on the board of operations and is currently serving as chairman of the division board.
Fred Henjes has been named senior vice president of sales and marketing. In his new role, he will lead the company’s strategic sales and marketing initiatives. Henjes, a second-generation Riverside representative, joined the sales force in 1989. Since that time he has been a two-time President Award recipient, and 12-time recipient of Riverside’s All-Star Team award. For more than 10 years, he has participated in the design and development of new product, both domestic and import.
“Fred has played a key role in Riverside’s overall transformation to a more dynamic, lifestyle brand marketing company,” Spradlin said. “His unmatchable skill set will provide valuable insight and contributions to Riverside’s continued growth during these challenging times.”
Michael L. Charlton has been named senior vice president of product development. Charlton is responsible for coordinating the company’s team-driven product development process, working directly with Riverside sales representatives, dealers, designers and consultants for input. Charlton joined Riverside in 1990 as advertising/marketing director and was most recently vice president of product development and merchandising.
“I could not be more pleased with our appointment of Michael Charlton to the position of senior vice president of product development,” Spradlin said. “His tenure and continued success within our corporation is a tribute to his unique talents and abilities.”
May 28,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on May 2007
Bruce Ballantyne has been named chief financial officer for Magnussen Home Furnishings.
A member of the company’s senior management team, Ballantyne reports to Richard Magnussen, chief executive officer and president of Magnussen Home.
As part of his new responsibilities, Ballantyne will oversee the company’s corporate assets, as well as provide financial decision making to ensure improvement in the company’s profits.
“Bruce has a broad understanding of the furniture business and a great analytical mind,” Magnussen said. “Although his title is CFO, he brings a big picture perspective of the industry to every decision we make and is an invaluable resource to our company on many levels other than just finance.”
Ballantyne joined Magnussen Home in 1988 as vice president, finance and administration, where he guided the company’s first corporate computer system implementation and helped lead the company’s expansion into U.S. markets. In his role as vice president, he developed the company’s human resources department across all locations, and created a company profit-sharing plan. Ballantyne also championed several critical company systems, including the sales and operations planning system, the business intelligence reporting system, and the company’s Balanced Scorecard strategic planning program.
Prior to joining Magnussen Home, Ballantyne was the corporate controller for Roxton Furniture Ltd.
May 28,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on May 2007
The Bombay Co., Fort Worth, Texas, announced Friday that it has received more than one offer to buy the company that has been struggling with weak sales. The announcement, which also included news a $10 million loan agreement to improve “liquidity,” said the nonbinding offers the company is evaluating represent a premium over the company’s 67 cents per share price Thursday.
With the news, shares of Bombay rose to 99 cents Friday. The company also announced last week that it faces possible delisting by the New York Stock Exchange due, in part, to its stock price dipping below $1 over a 30-day trading period.
The company hired William Blair & Co. in March to explore strategic alternatives. Updating the situation Thursday, company officials said the nonbinding offers are subject to due diligence and other conditions, and the company will not comment on the progress of the possible deals “until the appropriate time.”
The company reported an 11.9 percent decline in first-quarter revenues Thursday as same-store sales dipped 10.2 percent. The first-quarter net loss was $15.4 million compared to a net loss of $15.6 million in the same period of 2006.
“While we are disappointed with our first quarter results, which continue to be affected by softness in the retail home sector, we remain focused on our continued efforts to return Bombay to positive cash flow and long-term growth,” said CEO David Stewart Thursday. “By focusing on cost reductions and enhancing company wide efficiencies, we were able to achieve an improvement in operating results despite a $14 million decline in revenue. We believe that Bombay is positioned to strengthen its operations and improve performance.”
May 28,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on May 2007
Furniture Row Cos., Denver, announced Thursday that it has converted existing stores in Las Vegas and Saginaw, Mich., to the Denver Mattress Co. nameplate.
In both cities, Oak Express and Bedroom Expressions store locations have been converted to the bedding specialty retail nameplate that features Furniture Row’s own Doctor’s Choice private label brand. In addition to Oak Express and Bedroom Expressions, Furniture Row also operates Sofa Mart stores. In many cases, all four brands are grouped together in a Furniture Row shopping complex. The company, which owns the No. 78 Furniture Row Racing team in Nascar’s Nextel Cup series, operates more than 330 stores in 31 states.