Daily News
From Home Furnishing Business
King Koil to Open Company-Owned Factory in Arizona
January 23,
2018 by Larry Thomas in Business Strategy, Industry 
Mattress producer King Koil, which is transitioning from a licensee structure to a direct manufacturing model, will open its first company-owned factory in April in the Phoenix suburb of Avondale, Ariz.
The company initially plans to employ 50 people at the 90,000 square-foot facility, which will service retailers in Arizona, Alaska, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming.
“Our new King Koil factory is a key component of our new direct-to-retail manufacturing strategy,” said King Koil CEO David Binke. “Designed and outfitted with the latest machinery in the bedding industry, the Arizona factory will enhance our efficiency as we continue to implement our new platform. By controlling our own manufacturing base, we’ll be able to respond faster to our retail partners’ needs with a keen focus on helping them improve their margins on King Koil bedding sales.”
In addition to the manufacturing footprint, the facility will include offices for plant management and customer service teams, as well as an audio-visual conference room. A 2,500-square-foot showroom also will allow King Koil to showcase the entire national product lineup to its retail partners.
King Koil announced earlier this year its plans to shift its domestic business model from a licensing structure to a direct manufacturing strategy.
As part of the change, the company formed a strategic partnership with long-time licensee Blue Bell Mattress that will continue to make product for King Koil retailers in the East and Midwest.