Retiring CEO is leaving Gorman’s in experienced hands with focus on future

JAY DAVIS

As he prepares to leave the company he’s worked with for 40 years, outgoing Gorman’s Home Furnishings & Interior Design President and CEO Tom Lias believes the Farmington Hills-based company is in a great position going forward — a major reason behind his decision to retire.

“Everything is in place. In the last three years, we’ve consolidated our stores from six to four. We’ve cashed up. We have no debt,” said the 76-yearold Lias, who joined Gorman’s in 1983. “We have substantial cash reserves. e company is in the best position of its 82-year-history. Now’s the time for me to move on.”

Experienced leaders ready to step into new roles makes the transition easier, too, Lias said.

John Moray, 57, who has been Gorman’s vice president of operations for 27 years, will move into the CEO role. Moray is the son of past Gorman’s board Chair Bernie Moray, who died in 2021. e company is owned by the Moray Family Trust.

Stepping into the president role and handling most of the day-to-day operations is Duane Petroskey, who most recently served as Gorman’s vice president and general manager. Petroskey, 60, has been with Gorman’s for almost two decades and has more than 30 years experience in the furniture and interior design industry.

“I’ve been with the company for almost 18 years. I’ve been in management positions most of that time,” Petroskey said. “I’ve worked closely with (Lias), taking on more responsibility as time has gone on. e whole transition, succession plan has never been a secret. We’ve discussed it. (Lias) has mentored me for the past seven years.”

Lias, planning to move to Orlando, called the moves a “non-event.” e people who will lead Gorman’s into the future have been with the company for at least 13 years, he said.

“We didn’t have to go out and look for people. ey were already here,” said Lias, who has been in the furniture industry for more than 50 years. “ e plan was just normal evolution to turn over more responsibility while I was in the position to coach it.

“ e thing that puts me most at peace in all of this is that we’re moving out of town. I live a mile away from the Troy store. I couldn’t retire and drive by that store ve days a week. I’m happy ment Corp., which is providing an $800,000 performance-based grant under the Jobs Ready Michigan Program.

MEDC CEO Quentin Messer Jr. said Shyft Group’s expansion “underscores the strength of your business powered by our state’s talented workforce and leadership in mobility and advanced manufacturing.” e company weighed locating the EV production facility in Indiana and Pennsylvania, according to the MEDC. e state’s announcement noted the overall project is forecast to create 680 jobs in Charlotte. A company spokesperson said some of the hiring had already taken place and that Shyft Group will focus on employee retention and raising wages to reach certain milestones required under the grant. Shyft Group also will continue to work with Capital Area Michigan Works! on various talent e orts. e company is scheduled to re- for everybody who’s taking on more responsibility.” e changes come while the company is in a strong position. e Shelby Township and Grand Rapids stores closed after the expiration of 20- and 10-year leases, respectively. Gorman’s now has full-service stores in Novi, South eld and Troy, and a clearance store in Farmington Hills. e company has 90 employees. e two store closures helped Gorman’s increase its cash reserves, according to Lias. ose cash reserves, which Lias would not disclose, come from liquidation sales at the Shelby Township and Grand Rapids stores.

“We’re grateful to Shyft for this vote of con dence in Michigan and look forward to working together to grow, add jobs, and provide greater opportunity in Mid-Michigan,” Messer said in a statement.

“Our future is bright, and thanks to companies like Shyft and our local partners, we can continue bringing critical supply chains of cars, chips, and clean energy home to grow our economy and create good jobs for Michigan residents,” Gov. Gretchen Whitmer said in a statement.

As well, an executive previously told Charlotte o cials the company planned to pursue additional local tax incentives for a third location set to be a “battery storage facility” at the campus. However, the company opted in the last four or ve weeks not to pursue the incentive, according to a spokesperson.

Gorman’s in 2022 earned about $28 million in revenue, according to Lias. at number is up from pre-pandemic levels.

“If you have $1.5 million in inventory, at cost, on the retail oor, you can turn that into $2.5 million by selling it and not replacing the inventory,” Lias said. “You sell the pieces o and keep the cash.”

Petroskey said he’ll work to ensure Gorman’s keeps performing.

“With the way (Lias) and the owners have established the company as the place to go for higher-end furniture, and being able to get what they want in the higher end, we certainly will continue to do that,” he said.

Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981 port its fourth quarter and year-end 2022 earnings on Feb. 23. rough the rst nine months of 2022, Shyft Group generated $725.1 million in sales, up about 1.5 percent year-over-year.

As part of a third quarter earnings report released Oct. 27, Shyft Group executives narrowed their full-year outlook to $1 billion to $1.1 billion in revenues. At the time, they said expenses related to EV development were expected to reach about $30 million for the year.

In 2021, Shyft reported annual revenues of $992 million and adjusted earnings of $108 million.