Daily News Archive
Brought to you by Home Furnishings Business
September 29,
2012 by in UnCategorized 
By Aggregated Content in Case Goods on September 30, 2012
from http://www.chickasaw360.com/view/full_story/20272640/article-Rose-Hill-purchased-by-Madison-Park-Home-Furnishing?instance=lead_story_left_column
Rose Hill Company, of Okolona, was purchased by Madison Park Home Furnishings, with U.S. headquarters in Tupelo, earlier this month.
The price and details of the sale have not been made public and a company spokesman said all indications are the company will increase production.
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September 27,
2012 by in UnCategorized
By Home Furnishings Business in economic news on September 28, 2012
Furniture retailers ordered 4 percent more furniture in July than the same month last year, according to the latest Furniture Insights survey.
High Point accounting and consulting firm Smith Leonard conducts the monthly survey of residential furniture manufacturers and distributors.
The 4 percent July increase followed a 3 percent increase in June. Year-to-date, new orders are 4 percent ahead of the same period a year ago.
"Approximately 66 percent of the participants have reported increased orders year-to-date," said Smith Leonard Managing Partner Ken Smith in the survey report. "It is interesting to note that not all the same participants reported increases for the month and year-to-date. "The results were about what we expected based on recent conversations. We are not expecting much more out of August results.
July shipments 2012 were up 3 percent from 2011 following four straight months of 7 percent increases; and off 22 percent from June, which is somewhat normal due to July 4 shutdowns. Year-to-date shipments are up 8 percent, down from 9 percent reported last month.
Backlogs rose 2 percent higher from July 2011, down slightly from a 3 percent increase reported last month.
"It appears that backlogs are now reflecting the lower order rates of the last few months," Smith said.
July receivables rose 1 percent from the same month last year; and fell 9 percent from June, reflecting the reduction of shipments in July.
"Since July shipments primarily occur in the last two weeks of the month, we would not expect receivable levels to fall as much as shipments," Smith noted. "Compared to last year at this time, receivable levels remain in good shape."
Inventories were 11 percent higher than July 2011, up from a 9 percent increase reported last month.
"We hope that some of this may have related to the July 4 holiday week," Smith said. "If not, then it appears that inventories are going in the wrong direction. Inventory levels were up over last year for 69 percent of our participants."
Factory and warehouse employment rose 3 percent from July 2011 levels. In June, the number of employees was up 4 percent, in line with current business conditions.
Factory and warehouse payrolls were up 4 percent over July 2011 and down 23 percent from June, as would be expected for the holiday week. Year-to-date, factory and warehouse payrolls were up 7 percent, about the same as last month and in line with the increase in shipments.
"Once again, according to our latest survey, the industry did not exceed our expectations in July," Smith said in summary. "New orders were up 4 percent in July compared to July 2011, leaving year-to-date new orders at a 4 percent increase as well. Shipments were up 3 percent in July bringing our year-to-date shipments down to an 8 percent increase.
"From what we have gathered, we do not expect the August results to be significantly different than the last few months--really since March if you ignore the spikes and valleys around Market dates."
On the plus side, Smith pointed out that consumer confidence improved in September, almost back to February 2012 levels when business was clearly better; and housing continues to show improvement with very nice gains in both existing and home sales and housing starts.
"Reports of shortages in the West and Florida for existing homes seem to indicate that housing is really rebounding," Smith said. "Sooner or later this should drive some furniture sales. And as we have said before, with tighter mortgage restrictions, there should be more disposable income for these homebuyers--assuming they don't spend it all at the Apple stores. Gas prices have been a bother lately, but as hurricane season comes to an end, hopefully the supply lines will all stay in full gear.
"Realistically though, not many of the people we talk with are expecting much more than what we have been seeing lately. We think we may see a bit more improvement after all the negative political stuff is gone and we have a clue what we will be dealing with the next four years."
September 27,
2012 by in UnCategorized
By Home Furnishings Business in Advertising on September 28, 2012
Home furnishings marketing and advertising agency Horich Parks Lebow is adding Chief Operations Officer Chip Hectors name to the firms name.
The agency now is named Horich Hector Lebow.
With the March 2012 change in ownership, we began the process of changing our name. Adding Chips name to ours reflects his enormous contribution to the company since joining the firm in 1998, said Charlie Horich, CEO of the Hunt Valley, Md., company. Not only does he handle some of our major accounts, but he also stepped up to assume the duties of chief operating officer when we named Brad Lebow, our previous COO, president of the company.
Horich said the name is the only thing thats changing: For 30 years, our agency has stood for two things: our deep knowledge of the home furnishings industry and our commitment to client service. That philosophy isnt going to change.
Im honored that my name will be included in the companys new name," Hector, whp is a partner in the agency, said. "Charlie Horich, Brad Lebow and I have worked together to grow the agency into a national player in home furnishings advertising, and I look forward to contributing to our continued growth in the future.
Horich Hector Lebow is a full-service advertising agency dedicated exclusively to the furniture and home furnishings industry, and whose clients include 10 of the Top 100 Retailers.
September 27,
2012 by in UnCategorized
By Home Furnishings Business in Financial Reports on September 28, 2012
Furniture Brands International (NYSE: FBN) has closed on a five-year, $250 million credit facility.
The amount comprises a new $200 million asset-based loan and a $50 million secured term loan. These facilities repay the amounts outstanding under the existing asset-based loan, and after associated closing costs, result in more than $90 million of excess borrowing availability.
The incremental availability provided by this financing, along with the FBI's cash balance, is expected to provide sufficient capital to fund business improvements and growth initiatives and for general corporate purposes, as needed. The company will incur increased interest expense associated with the new facility as well as approximately $8 million in closing costs, which will be expensed over the five year loan period.
"We are very pleased to have opportunistically accessed the capital markets with a financing package that provides for increased borrowing capacity and greater financial flexibility," said Ralph Scozzafava, Chairman and CEO of Furniture Brands, St. Louis. "We are appreciative of the support from our new and existing lenders and are pleased to have partnered with such a distinguished group of financial institutions. These facilities will allow our company to continue our future growth and execute on initiatives that will improve our competitiveness and financial performance."
GE Capital, Bank of America, and Wells Fargo provided the majority of the facility on a fully committed basis and will serve as joint lead arrangers for the $200 million facility. Additionally, this asset-based loan contains an accordion provision that, subject to certain conditions, allows Furniture Brands to expand the asset-based loan by up to $50 million. Pathlight Capital LLC, a Sycamore Partners company, will serve as the administrative and collateral agent of the new $50 million secured term loan and the Junior Capital Division of Wells Fargo Capital Finance, which is a division of Wells Fargo, will act as the documentation agent.
September 27,
2012 by in UnCategorized
By Home Furnishings Business in High Point on September 28, 2012
High-end accent furniture and seating vendor Moore Councill has moved its High Point Furniture Market showroom in 200 N. Hamilton.
The company, which had been showing in the 200 N. Hamilton buildings South Court, will now exhibit in Space 211 of the North Court. The new showroom is 6,046 square feet, 50 percent larger than the previous location.
Weve completely redone this new space to create a more open, inviting environment where customers can come in and really see our line, said Moore Councill, president and CEO. Weve removed most of the walls and low ceiling treatments and added cool new touches such as barn doors that slide open and decorative columns. Our team did a fantastic job with the design of the space, shining a clearer spotlight on our exquisite collection of accent and seating pieces.
In addition to use during market, the new showroom will be open year-round to designers and other members of the trade. It also will serve as Moore Councills business office.
Designers and retailers can make an appointment and come by to see us anytime, said Councill. And they are welcome to bring their clients.
The former owner of luxury furniture source Councill Cos., Moore Councill launched Moore Councill in October 2011. His new company specializes in eclectically styled wood furniture and exposed wood seating, including chests, dining and occasional tables, bars, curios, bookcases, mirrors, buffets, credenzas, settees, chairs and ottomans. Products are sourced from a plant in Vietnam, where the company has its own quality-control supervisor, and warehoused at a distribution center in High Point.
Were focused on providing one-of-a-kind pieces with unique finishes and fabrics, said Councill about the companys niche. Todays luxury consumers are looking for interesting, statement pieces that they can mix and match to create their own personal statements.
At market, Moore Councill will introduce several items, including a round, transitional-style cocktail table with a mosaic treatment of mother-of-pearl fragments; a floating bookcase with shelves of reclaimed wood and two-tone painted finish; and barstools with gently curving backs that can be bunched in a group for intimate gatherings.
Moore Councill also plans to show new exposed wood chairs. Its new showroom will include a multilevel chair gallery display that shows a wide range of chair models, presented in similar finishes and fabrics so that the shapes can be easily evaluated. The area includes a wall of decorative mirrors, as well as colorful lighting fixtures provided by Currey & Co.
Other display touches of note in the showroom include the incorporation of mannequins outfitted in the latest fashions.
Were bringing a new element of fashion to the industry, said Councill. Our goal is to create a level of excitement and surprise rather than simply lining up the furniture in predictable rows.
Councill added that his company has had a strong year. New customers that have recently signed on to carry the line include Robb & Stucky International in Fort Myers and Naples, Fla., and CAI Designs to-the-trade showrooms in Chicago and Denver.
Julie Messner, vice president of leasing for International Market Centers, said Moore Councills new showroom makes 200 N. Hamilton an even more important destination for fashion-oriented retailers and designers: Theyre creating a must-see showcase for luxury design.