Hooker Furniture to Purchase Youth Bedroom Specialist
Furniture World Magazine
Hooker Furniture announced it has signed a letter of intent to purchase the assets of New York-based Opus Designs Furniture, LLC, a specialist in moderately priced youth bedroom furniture. The
transaction is expected to close some time in the fourth quarter of the 2007 calendar year, subject to, among other things, completion of due diligence and negotiation of a definitive acquisition agreement.
"The acquisition would provide a solid foundation for Hooker to build a strong youth bedroom program at more moderate price points, with a more comprehensive product line and with superior sourcing arrangements compared to the Company's current SmartKids youth furniture line," said Paul B. Toms Jr., chairman, chief executive and president of Hooker.
"We're committed to youth bedroom, having entered the category around the same time Opus began in 2005, but we have struggled to become an important resource. As part of our commitment to become more competitive in the category, we looked for an established company with a solid sourcing structure and a broad product line. We believe we have found that, at slightly lower price points, in Opus."
Opus is expected to have about $5-6 million in sales in 2007, and offers approximately ten groups covering the key style bases in youth bedroom, including cottage, pine, Victorian and transitional. Multiple finishes are offered on some groups.
Because of the more competitive price points at Opus, Toms believes the product line offers "a tool to help us and our retailers reach a younger customer and a broader demographic income spectrum than our current consumer base."
By the same token, Hooker offers resources to help the Opus lines grow: "Opus is an entrepreneurial company that has been successful, but we offer the financial backing to go to the next level and support the business with enhanced systems; better forecasting, inventory management and quality assurance; and a broad range of other resources.
In addition, we believe our organization is well positioned to improve
service to their customers and expand sales of their product at
Opus' President of Design and Engineering, James Millner, who oversees design and product development, would remain with the business.
Ranked among the nation's top 10 largest publicly traded furniture sources based on 2006 shipments to U.S. retailers, Hooker Furniture Corporation ("Hooker Furniture" or the "Company") is an 83-year old residential wood, metal and upholstered furniture resource. The Company's principal customers are home furnishings retailers who are broadly dispersed throughout North America. Major wood furniture product categories include home entertainment, home office, accent, dining, bedroom and bath furniture. Hooker's residential upholstered seating companies include Cherryville, N.C.-based Bradington-Young, a specialist in upscale motion and stationary leather furniture, and Bedford, Va.-based Sam Moore Furniture, a specialist in upscale occasional chairs with an emphasis on fabric-to-frame customization.
Visit www.hookerfurniture.com, www.bradington-young.com and www.sammoore.com for more information.