ZEELAND, Mich. – High-end case goods manufacturer Hekman Furniture is celebrating its 100th anniversary in business.

“It’s kind of amazing for any company to survive through the Great Depression, World War II, the advent of market changing technology and so much more,” said Jim O’Keefe, vice president of sales. “Through it all Hekman has survived and thrived.”

The company’s story begins in 1893, when Edsko Hekman immigrated from the Netherlands to Grand Rapids, Mich., hoping to find his life’s work as a furniture maker. The Panic of 1893 – a severe financial crisis in the U.S. – would lead him to his first profession as a baker. Selling cookies door-to-door, Edsko eventually went on to found the Hekman Biscuit Co., which was later to become the Keebler Co.

Edsko’s love of furniture crafted in the Old-World Traditions would later blossom in his three sons John, Jelle and Henry. They would fulfill their father’s dream and start the Hekman Furniture Co. in 1922.

In 1970, the company became a division of Beatrice Foods, and in 1983, Hekman Furniture was purchased by the Howard Miller Clock Co. of Zeeland, Mich. In 1993, Hekman acquired Woodmark Furniture, an upholstery company founded by Elliot Wood, and Hekman then began to build on its ability to offer high-end case goods and upholstered furniture.

See also:

• High-end furniture manufacturer’s new cabinets ‘allow retailers to compete with Lowe’s’
• Hekman’s new designer-focused website offers free shipping, no minimum order

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HIGH POINT – High-end case goods and upholstery manufacturer Vanguard Furniture unveiled its Splendor case goods collection at the recent High Point Market, featuring bedroom, dining and occasional furniture.

The collection was shown in two distinct ways in the showroom: a light and airy vignette, showcasing the soft finishes and materials, as well as a dark and moody vignette highlighting darker finishes and bolder tones. The darker vignette is contrasted with the natural luminescence of selenite, a crystalline mineral material.

“We created the Splendor collection to showcase the inherent beauty found in natural materials,” said Vanguard President and CEO Andy Bray. “The soft sheen of natural selenite adds a touch of glamour and elegance to a space without feeling overly ‘glam.’”

The line can be styled with lighter finishes or contrasted with deeper, richer finishes such as Mocha and Peppercorn. All pieces in the collection can be customized with finishes from an array of curated wood stains, paints, metallic paints and premium leaf finishes.

“The possibilities are limitless, and we can’t wait to see all the stunning interiors our customers create with Splendor.”

Bray said Vanguard’s time at market was successful, with at least 1,000 people in the company’s showroom Saturday. A good market isn’t judged by sales though, he said; it’s the quality of the interaction that counts.

“We’re here to inspire,” he told Furniture Today. “Markets aren’t as much transactional as they are about spending time with people. We’re lucky if our factory gets two days of production out of it. It’s all about building and strengthening relationships.”

Bray also talked about the strong designer presence.

“Most people we’ve seen are designers,” he said. “But on the luxury side, retailers are more design-driven anyway. Even with our retailers, you know there’s a designer involved somewhere.”

The company also revealed the favorites of its designers. Those included the “M” shaped, fully upholstered Origami chair; the modern Flynn dining table, which features a cast aluminum top and triangle-shaped travertine bases; and the Wright dining chair, which features a narrow, open oak frame and T-shaped silhouette.

See also:

• Vanguard CEO: How did we get here? And where are we headed?
• Vanguard Furniture invests $5.9 million in capacity build

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ANAHEIM, Calif. — Direct-to-consumer home furnishings brand Castlery is celebrating its 10th anniversary with the launch of a limited-edition collection themed “Timeless Design, Boldly Elevated.”

The new collection includes 16 products, reimagined from Castlery’s best sellers, and it consists of less than 100 pieces per item.

The 10th anniversary collection revisits the brand’s iconic pieces and gives them a makeover with the use of premium materials such as Toronto marble, burl wood and premium woven yarn.

“We are incredibly proud of this milestone and how far we’ve come as a brand,” said co-founder Declan Ee. “To mark our 10th year, we’ve taken the opportunity to explore the use of distinctive, luxurious materials with our signature designs, to elevate and curate a cool and collectible series that’s out of the ordinary.”

Among the products in the launch are:

• The Marlow sofa collection — available in three modules: armless two-seater sofa, wedge sofa and armless sofa — is a channel-tufted sofa in Chair Revival fabric and sitting on honey oak wooden legs. Ranging from $3,679-5,349, depending on configuration.
• Occasional tables including the Cupid coffee table, $999, and Mika side table, $599. Both are constructed of burl wood, with the Cupid table featuring contrasting strips of polar and elm burl veneer.
• The Sloane group of dining table, dining chairs, TV console, sideboard and shelf, offered in warm honey oak finish.
• The Ingrid chair, $899, has a fully upholstered seat with tilted backrest and is covered in Umber Panache fabric, exclusive to this limited edition collection.
• The Sacha armchair, $1,099, is fully upholstered and offers a low-slung, sculptural silhouette.
• The Rochelle performance boucle bed, $1,599, is reimagined in a duo-toned woven chenille and solid honey oak legs. Available in queen and king.

Apart from the furniture, Castlery is also releasing limited-edition tote bags to commemorate the anniversary and sporting the same signature fabrics as seen in the collection: Vivid Merlot and Chai Revival.

The 10th Anniversary Limited Edition Collection is available for purchase online. Founded in 2013, Castlery is available in more than 100 metropolitan areas across the U.S., Australia and Singapore.

See also:

• DTC furniture line grows with 2 new sofas
• Sitting pretty: Dozens of seating options make up DTC brand’s new introductions

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DANBURY, Conn. — Top 100 retailer Ethan Allen saw orders drop off by double digits during its fiscal first quarter but managed to slice expenses by more than $11 million.

For the first quarter ended Sept. 30, consolidated net sales fell 23.6% to $163.9 million. Net income was halved, coming in at $14.94 million, or 62 cents adjusted per diluted share, compared with $29.88, or $1.11 adjusted per diluted share, in the year-ago quarter.

Sales were negatively impacted by $15 million due heavy flooding at Ethan Allen’s Vermont facility in September, which resulted in a pre-tax charge of $2.1 million. Retail net sales fell 23.6% to $163.9 million while wholesale net sales declined 13.3% to $99.4 million.

“We resumed limited operations during the second half of the quarter, and at this time, the majority of our associates are back at work,” said Farooq Kathwari, Ethan Allen’s chairman, president and CEO.

On the expense side, Ethan Allen managed to slash sales, general and administrative expenses down to $80.298 million compared with$91.962 million in last year’s first quarter. The company also reduced inventory levels, which ended the quarter at $149.6 million, 10.8% lower than a year ago.

“Despite these challenges, we were able to maintain a strong gross margin of 61.1% and an adjusted operating margin of 12.1%. We also continued to generate positive operating cash flow and as of Sept. 30, we had total cash and investments of $163.2 million and no debt,” said Kathwari.

Looking ahead, he said the company believes consumers are ready to begin refreshing their homes again following the 2022 pullback.

“After the major focus on consumers on their homes during the pandemic, we see consumers have spent more focus on time in other areas, such as travel. We expect to see that moderate (with) more focus on the home, although not at the level we saw during the COVID period,” he said.

Ethan Allen is responding by introducing new products into its assortments, “and we will continue to do so in the next 12 months.”

See also:

• Completely gutted: Pictures highlight Ethan Allen’s severe flood damage
• Ethan Allen’s profits beat 2022 levels despite fourth quarter dip

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DALLAS — A curated product vignette that allows retailers to highlight customization options in an approximately 2,000-square-foot space is the idea behind American Leather’s “Shop in Shop,” and the concept — a key strategy of the company’s current brand evolution — was on full display during the recent High Point Market.

Described by the company as a “curated, design-forward retail footprint meant to inspire the customer through a lifestyle vignette,” Shop in Shop showcases the variety of American Leather’s product line in a consistent format. Noting that the flexible size requirements for Shop in Shop allow retailers to create a space that works best within their specific store, company representatives added that each shop features an American Leather design center with a selection of premium leathers and fabrics, as well as customization options for arms, legs and materials.

Although a preview of Shop in Shop debuted earlier this year, this fall’s market marked the full unveiling of the brand evolution and new concept with a 2,000-square-foot example on display in the company’s showroom. Veronica Schnitzius, president of American Leather, said that the reveal allowed retailers to experience Shop in Shop firsthand and that the new in-store focus is just one part of a comprehensive strategy designed to support continued growth heading into 2024.

“Evolution is growth based on experience,” Schnitzius said. “Our ability to reflect upon our own journey has been key to our continued growth striving to balance the sensitivity of design alongside the vigor of innovation that has long been the heartbeat of what American Leather stands for.”

In a previous interview with Furniture Today, Schnitzius and Brian Golden, CEO of Artisant Lane (parent company of American Leather), outlined future strategies for the brand.

“Yes, we are an upholstery resource, but we’re also a lifestyle brand,” Schnitzius said. “We looked at our line and asked ourselves what we needed to complete the room in a home, and we approached product development from that angle. Now, our expanded upholstery line answers that question.”

Golden said that American Leather emerged from the pandemic as a stronger company and that U.S.-based production supported inventory management as demand softened.

“If we look back at 2019, everything has changed,” Golden said. He added that the business strategies implemented by the team during the industry’s pandemic pivot allowed American Leather to start planning for future growth and expansion during a time when many manufacturers were struggling, a move that included Shop in Shop and its product message.

The Shop in Shop concept highlights the focus on “how the brand makes you feel” in contrast to the mechanical innovation showcased in the company’s Innovation Shops and offers a different experience with American Leather products, officials said. Noting that Shop in Shop is highlighting “the human aspect more,” a reference to the 700 employees building the company’s custom products in Dallas, officials said that the concept is about “conveying the mindset — the lifestyle — the whole home.”

“This is so much bigger than a rebrand,” said Ashley Fothergill, creative director. “We are transforming how people see and experience American Leather. Every sofa isn’t just about the sofa; it’s about all of the people behind it, and our new creative direction helps us tell that story and bring the brand to life.”

See also:

• From product development to private equity support, this manufacturer is focused on growth 
• 20 People to Watch: Brian Golden, American Leather

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CHAGRIN FALLS, Ohio – Organic mattress maker Naturepedic has installed a new roll-packing machine that will cut down on the company’s use of plastic packaging.

The new roll-packing machine wraps the mattresses, comfort layers and toppers in kraft paper helping to keep 55,000 pounds of plastic out of landfills each year, the company said. The paper is free of coatings and is fully recyclable.

“The mattress industry is not perfect, even organic mattress brands like ours, and sometimes plastic packaging materials are unavoidable,” said Jason Cik, Naturepedic co-founder and chief operating officer. “However, Naturepedic is committed to using the safest, healthiest and most sustainable materials we can secure in both our products and packaging. Switching to kraft paper roll-packing is a huge win for the environment.”

According to the U.S. State Department’s Organization for Economic and Co-operation and Development, plastic production will triple by 2060. Currently, more than 350 million metric tons of plastic waste is produced each year.

In addition to the new kraft paper packaging, Naturepedic’s packaging will also feature printing done with environmentally safe soy inks, using outside printers that use FSC-certified paper, printing labels on FSC-certified or recycled paper, sourcing cardboard packaging with high amounts of recycled content and printing locally as much as possible to reduce its carbon footprint.

Founded more than 20 years ago as a manufacturer of certified-organic mattresses and other sleep products, Naturepedic is a member of Organic Trade Assn. and 1% for the Planet.

See also:

• Newest Naturepedic store moves brand closer to 25 stores by end of 2023
• Naturepedic expands organic pillow lineup by 3

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BOSTON – Boston-based asset disposition and advisory firm SB360 Capital Partners has been selected as the exclusive agent for the disposition of finished goods, work-in-process inventory and raw materials for the now defunct Klaussner Furniture.

Klaussner abruptly shut down all operations in August, leaving nearly 900 employees out of a job.

SB360 has extensive experience selling off furniture inventory, having handled dispositions for United Furniture/Lane, Thomasville, Henredon, Drexel, Broyhill, Art Van and Loves Furniture.

“Klaussner’s products are sold by major retailers and furniture dealers across the country,” said Aaron Miller, president of SB360 Capital Partners. “This is an opportunity for those retailers to expand their in-stock Klaussner offering and provide customers with a value proposition that will be meaningful as we head into the holiday season.”

SB360 says it will negotiate sales with Klaussner’s existing customers, as well as other national and regional furniture retailers and wholesale distributors. Interested parties can email info@klaussnerliquidation.com.

Klaussner announced Aug. 7 that it was ceasing operations because its lender would no longer fund the company. Since then, several furniture companies have picked up items formerly owned by Klaussner. Parker House bought the company’s Vietnam office, Canadian foam and fiber manufacturer VPC Group bought a foam plant, and Legacy Classic acquired the Trisha Yearwood license.

See also:

• Did Klaussner violate WARN Act with shutdown? Employee lawsuit says yes
• Here’s how several manufacturers are pivoting to serve Lane and Klaussner buyers

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AMSTERDAM, The Netherlands — While revenue was up 5% in constant currencies, report revenue for AkzoNobel’s third quarter was down 4.2%, while operating income and net income were up sharply for the period.

The company noted that revenue growth in constant currencies was mainly driven by pricing; volumes were flat, with higher volumes in Marine and Protective Coatings, Powder Coatings and Decorative Paints Asia and offset by soft demand in Industrial Coatings.

EBITDA for the third quarter ended Sept. 30 was €443 million, up 46% from €283 million in the same period last year.

Operating income increased nearly 111% over the year-ago period, which the company attributed to property divestments, partly offset by restructuring and acquisition-related costs for the Chinese Decorative Paints acquisition from Sherwin-Williams.

As of Sept. 30, the company’s net debt was €4.103 million vs. €4.089 million at the end of 2022. The net debt/EBITDA leverage ratio at the end of the quarter was 3.2, compared with 3.8 as of Dec. 31, 2022. Free cash flow was up significantly year-over-year to €243 million as compared with €54 million in the 2022 period.

In its outlook for the full year, AkzoNobel expects the economic conditions to continue to impact volume growth. It says cost reduction programs are expected to partly mitigate higher-than-expected inflationary pressure on operating expenses.

Based on current market conditions, the company projects around €1.45 billion adjusted EBITDA for the year.

For the full earnings report, click here.

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HIGH POINT — It was a big fall market for case goods suppliers, many of which expanded into new categories and others that introduced the largest number of new items ever. Quite a few suppliers entered new categories as interest turns toward becoming a whole home supplier.

Magnussen Home made its big upholstery debut, as did domestic manufacturer Copeland Furniture. Entertainment and office furniture specialist Martin Furniture got into dining, while Vaughan-Bassett made its return to the same category after a three-year absence.

Other companies, such as Bernards, AICO, Sherrill and Universal, unveiled some of their biggest product introductions ever.

Mid-to-lower-priced whole home supplier Bernards, for example, unveiled the 70-piece whole home Assemblage, one of the biggest launches it has offered. The line has more of a designer feel, according to President Micah Swick, with modern looks, earth tones and soft curves. The set includes three beds retailing at $699 and three dining tables starting under $500.

“Providing exceptional value is key and continues to be our focus,” said Swick. “Our strategy is to increase share of wallet and offer a better representation to our buyers.”

He said a customer’s buying experience is key to the sale. “Consumers want to be submerged in an experience,” Swick said. “That means setting up product in an environment they can get their arms around. That means curated vignettes. We want to show furniture in actual room settings, and we want retailers to show our furniture that way, too.”

New products will continue to be a chief focus for the company going forward, as about 85% of the company’s showroom this fall featured new products. “Retailers have been living with old products for a long time. They want new.”

Despite calling this market one of Bernards’ best ever, Swick acknowledged that business is down. Still, he’s optimistic.

“Imports going down isn’t a good indicator of business health,” he said. “Ocean rates went up in August after all, and the industry’s third quarter earnings reports were better than expected. I don’t believe consumer confidence is low. People will still spend if we give them a reason to.”

High-end supplier AICO had its largest production ever, according to President David Koehler, with 25 new collections. New items are evenly spread across the company’s categories.

“Business is tough, but in terms of customer reaction, this has been a ‘super’ market,” Koehler said. “One way we judge a market is if we can get that reaction. We hit it big this time.”

Like Bernards, Koehler said demand for new products from retailers is the highest it’s been in some time.

Companies “didn’t come up with new items over the pandemic really,” he said. “The appetite is now high. Inventory positions are stronger than they were a year ago. Our plan is to be very aggressive on new products and to acquire more market share. Next April, you can expect another big introduction.”

Notable was AICO’s new upholstered bed program, which allows buyers to customize with materials and finishes. Beds start retailing at $699 and ship direct container only.

Expanding retail reach

Vermont-based manufacturer Copeland Furniture’s big focus was its new Sierra collection, which includes upholstery — a new category for the company — and matching occasional furniture.

“We have some retail buyers that are specialists in woodworking but have lacked in the living room category,” said Ben Copeland, director of sales and marketing. “We saw an opportunity to be a resource for them.”

“Over the past 10 years, we’ve developed our skillset in our upholstered elements. First, we did headboard panels and then upholstered dining seats. We’ve gained more experience over time.”

Reflecting the market and business in general, Copeland said, “In terms of scans, this is the best market we’ve had since COVID. Overall, we’ll finish 2023 flat or down a couple points from last year. The past eight weeks have seen an improvement, probably thanks to Labor Day. We expect to have an even better Black Friday.”

High-end manufacturer Stickley Furniture didn’t go with a big launch but instead opted to fill in the gaps of its existing lines.

“Last time we came with a whole group,” said Aminy Audi, Stickley CEO. “This time we decided to strengthen our existing lines. We looked at every line and asked ‘do we want to add something to fill in a gap?’”

The biggest add-on was to Walnut Grove, the company’s mid-century modern and Scandinavian-influenced case goods and upholstery line. Additions include a new high-backed dining chair, a small server and a 52-inch bedroom chest. New upholstery items include an 82-inch tufted-back sofa, a sectional and a coordinating slipper chair.

Besides Walnut Grove, the company also expanded its Mission line, which Audi said continues to be its top seller. Five new pieces also were added to Little Treasures, a collection of smaller, historically themed items.

Also notable for Stickley was its new express shipping program, in which select items ship in either 30 or 60 days.

“It’s no risk to us to stock items we know will sell,” said Beth Chang, director of marketing. “We’re just rolling it out now, but it has been popular so far. Selling something is certainly easier if we can get it to someone in 30 days.”

See also:

• Case (goods) in point: Vendors make the bed and set the table
• Occasionally speaking: From accent pieces to consoles, wall units and more

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HIGH POINT – Indiana-based case goods manufacturer Fusion Designs ramped up its quick-ship Essentials program for High Point Market, as well as adding a new panel bed in white oak.

Two new dining groups and one standalone buffet were added to Essentials, which includes pre-built dining items that ship out in 10 days. All items are in maple, and retailers can select from one of 35 finishes. The company also offers Essentials Plus, a lower-cost, higher-volume version of the same program.

“Our retailers still want things fast, and Essentials is great for buyers who want American-made solid wood furniture for customers who might have felt priced out of the category,” said Marcus Bontrager, company president.

Harmony, one of the new dining sets, is crafted in brown maple. It features a clean-lined trestle table with a Mission shaped top and an under-bevel edge, that can be expanded magnetically for entertaining with up to four, 12-inch, self-storing leaves. A table, bench, buffet and chairs are offered, with a table and four retailing for about $4,000.

A new buffet was also added to Harmony, serving as a stand-alone cabinet in solid maple. Its targeted demographic is younger consumers who may be short on space.

“This program has been a great way for us to reach younger consumers who yearn for good-looking, quality furniture that will actually last,” said Bontrager. “We know that many are urban dwellers who live in smaller spaces, and that means they need smart, multifunctional pieces, especially for entertaining.

While this market specifically didn’t represent a massive new product launch for the company, Bontrager said the company has introduced around triple the amount of product it usually does for the year as a whole.

“There’s really been little innovation over the past few years,” he said. “That’s why in 2023 we’ve been pumping out styles. Anything to grab attention. But we will eventually scale down. Our plan is to finish the year big and then pull back.”

Sales are down around 20% for the company since mid-2022, Bontrager said.

“I’m not sure when things are going to pick up,” he said. “I’m expecting the next six months to be slower and we’re really going to have to put our heads down.”

See also:

• The big new look for 2024? White oak, says this furniture executive
• Fusion Designs takes aim at cheaper imports, unveils high-volume program

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