Daily News Archive
Brought to you by Home Furnishings Business
May 21,
2006 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on May 2006
At the request of three capital management firms, the Ontario Securities Commission has set a July 5 hearing to address matters relating Sears Holdings Corp.’s offer for shares of Sears Canada.
Hawkeye Capital Management, Knott Partners Management and Pershing Square Capital Management—minority investors in Sears Canada—joined together to request the hearing. The companies together own about 7.7 percent of Sears Canada’s outstanding shares and are opposed to Sears Holdings’ efforts to acquire the Canadian retailer.
“We welcome the OSC review of the various inaccurate and self-serving accusations made by a group of US speculators and arbitrageurs who have attempted to obstruct the will of the majority of the minority shareholders of Sears Canada,” said Alan Lacy, Sears Holdings vice chairman. “We also look forward to the OSC considering as part of the hearing the actions of these investors that we have brought to the attention of the OSC.”
Lacy also said the company expects a quick resolution and confirmation that Sears Holdings has successfully satisfied all conditions needed to complete its acquisition.
May 18,
2006 by in UnCategorized
By Home Furnishings Business in Casual Furniture on May 2006
Casual home furnishings specialty retailer Cost Plus reported a first-quarter 2006 loss of $4.8 million on sales of $213 million.
While sales for the period ended April 29 were up 6.5 percent over first-quarter 2005, the loss in the 2006 increased from the prior year’s loss of $138,000.
Same-store sales for the quarter decreased 4.3 percent, compared to a 1.9 percent decrease for the first quarter of 2005.
Oakland, Calif.-based Cost Plus, parent of World Market, indicated that weaker-than-expected customer traffic and lower sales of upholstered and outdoor furniture were the primary reasons for the comparable store sales decrease. A 260 basis-point decrease in merchandise margin compared to last year contributed to the shortfall in earnings from an earlier guidance. A longer Easter selling season leading to a higher mix of consumable goods in total net sales, and higher markdowns in furniture and textiles had a negative impact on merchandise margin.
Cost Plus opened seven stores and closed two stores in the first quarter. As of Thursday, the company operated 274 stores in 34 states, compared to 240 stores in 30 states at the same time last year.
For second-quarter 2006, Cost Plus expects total sales between $212 million and $221 million versus $202.8 million in the prior-year period; and a net loss between $6.7 million and $8.9 million versus $1.5 million net income in second-quarter 2005.
The company also plans to open two new stores in the second quarter versus 10 stores opened and two closed in last year’s period; and expects a same store sales decrease of 4 percent to flat versus a decrease of 1.7 percent in the prior year second quarter.
May 18,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on May 2006
One of the Northeast’s fastest-growing home furnishings retailers plans to continue its expansion next week with the opening of a new 38,000-square-foot New Jersey store, it’s second in the Garden State.
Bob’s Discount Furniture announced plans Friday to open the new showroom in Paramus, N.J. next Wednesday with a sizable celebration that will include an appearance by Bob Kaufman, the president of the company, as well as it’s longtime television commercial pitchman.
“Based upon the success and the overwhelming, positive response that we have received in our Totowa, N.J. store, we are definitely looking forward to the opening next week of our Paramus location, right in the heart of Bergen County,” Kaufman said in a company release.
In addition to the two New Jersey stores, Bob’s Discount Furniture also has 21 stores located throughout Connecticut, Massachusetts, Maine and New Hampshire.
May 18,
2006 by in UnCategorized
By Home Furnishings Business in on May 2006
Haverty Furniture Cos. has promoted five employees, the company announced Thursday.
Janet Taylor has been named vice president and general counsel. Prior to joining the company in 2005 as vice president, law, Taylor was a partner in the corporate department of the Atlanta office of law firm King & Spalding. She has also worked as assistant general counsel for a medical services company.
Steven Langer has been named vice president, supply chain. He joined the retailer in 2005 as assistant vice president, supply chain and has more fully developed and strengthened the area. He has gained considerable expertise in this field during his career working with global companies such as Georgia Pacific and Delta Airlines.
Matt Scalf has been named vice president, import services. He has more than 20 years of experience in the furniture industry and joined the company in 2004. He represents the company overseas and works closely with manufacturers in Asia, as well as the company’s quality control firm.
Scott Miles has been named assistant vice president, stores. He has held a number of positions in store operations, serving as the market area manager for Havertys’ expansion into Cincinnati, Ohio, and as operations manager of the Metro-D.C. market area. Prior to joining Havertys in 2002, he supervised store operations for more than 28 stores in five states for a regional retail furniture chain.
Heather Wujek-Johns has been named vice president, financial planning and analysis. Her responsibilities include managing the corporate budget and forecast processes and financial analysis. Prior to joining Havertys in 2004, she worked in the marketing services industry.
“We are pleased to promote these experienced, dedicated professionals to serve in key positions in our distribution, merchandising and store support areas of our business, functions critical to Havertys’ success,” said Clarence H. Smith, president and chief executive officer.
May 18,
2006 by in UnCategorized
By Home Furnishings Business in on May 2006
Atlanta-based rent-to-own retailer Aaron Rents has set the pricing of its public offering of 4 million shares of non-voting common stock at $25.75.
Of the total shares to be offered, 3 million are being offered by the company, and the other million shares are being offered by Charlie Loudermilk, chairman and chief executive officer.
Aaron Rents and Loudermilk have also granted to the underwriters an option to purchase an additional 450,000 and 150,000 shares, respectively, within 30 days after the offering to cover over allotments. The net proceeds from the sale of the 3 million shares sold by the company will be used to repay bank debt and for general corporate purposes. The offering is expected to close May 24.
SunTrust Robinson Humphrey is the sole book-running manager for the offering, and Morgan Keegan & Co. is co-lead manager. Stifel Nicolaus, Wachovia Securities and BB&T Capital Markets are co-managers. A copy of the final prospectus relating to these securities may be obtained from SunTrust Robinson Humphrey.
The company has more than 1,225 company operated and franchised stores in 46 states, Canada and Puerto Rico.