Home_Textiles_Today_Jan10th_2011 by Sandow Media

Monday, January 10, 2011

THE THE BUSINESS BUSINESS AND AND FASHION FASHION NEWSPAPER NEWSPAPER OF OF THE THE HOME HOME TEXTILES TEXTILES INDUSTRY

More Supply Than Demand Home Textiles Today Exclusive Annual Report NEW YORK — If 2010 was better than 2009 it was only for one reason: 2009 was really, really bad. The 2011 Supply Side Giants, Home Textiles Today’s exclusive annual ranking of the industry largest suppliers overall and by product category, paints a picture of an industry still reeling from the lingering aftershocks of the Great Recession, one desperately trying to come to grips with lower price points, shorter margins and pressure from the cotton fields to the store shelves. It was that kind of year. Just ten years ago, a list of the industry’s biggest suppliers would have included some of the great landmark names in the business, the southern mills that ran the home textiles industry for the better part of a century. Now they are largely gone or exist only in heavily altered states. Instead the list of the Top 15 vendors includes foreign-based entities with U.S. subsidiaries, specialized suppliers largely in the white goods business and a number of rug companies that dominate that product classification. An astronaut back from a long trip around the galaxy would barely recognize many of these names. When it comes to the individual product breakdowns, where Home Textiles Today ranks the five largest suppliers in most of the industry’s key classifications, the story is much the same, although more specialized resources turn up here. Despite the changing cast of characters, all of the rankings show one very fundamental shift in the very nature of the industry: An industry dominated by perhaps five very large vertical mills just a decade ago is now fragmented and scattered in a hundred different directions, from the Carolinas to Karachi. See inside for Home Textiles Today’s Supply Side Giants special report. HTT

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The looms keep weaving, but who’s buying?

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| Vol. 31, No. 1 | $8.00

Atlanta Market Sets Stage for Optimism in 2011 BY CECILE B. CORRAL ATLANTA — With the Atlanta International Area Rug Market as their launching point for business in 2011, category suppliers are exhibiting their optimism for improved business trends in the New Year via the myriad new product offerings they are bringing to this biannual event. “Because of the slowness in business lately, our new introductions had been fairly soft last year. But this year we are introducing a disproportionate amount of new products for our customers,” said Steven Peykar, principal, Saddle Brook, N.J.-based Nourison. “We have developed a lot of new looks and a lot of great products in different price categories that we feel are more updated and on trend.”

Peykar described 2009 and 2010 as a recessionary period that “is really the longest one since I’ve been in business. So this year we are hoping for some better results.” Stronger sales activity from retailers during the fourth quarter has given reason to hope for a brighter 2011, said Arash Yaraghi, principal, Port Washington, N.Y.-based Safavieh. “We are encouraged that retailers [were] actively buying and promoting product in the fourth quarter of 2010 and we expect this to continue as they see consumers respond,” he said. If this trend continues, suppliers will be better equipped with the many obstacles — stemming f r o m r aw m a t e r i a l p r i c e h ikes globally — they face this new year. SEE ATLANTA PAGE 22

Ellery Homestyles in Recap With Investment firm MIAMI — Diversified home mitments, and Goldman protextiles producer Ellery vided equity for the transacHomestyles LLC has comtion. Senior financing was pleted a recapitalization provided by Wells Fargo and with private investment firm Pepper Hamilton acted as Trivest Partners, which conlegal counsel to Trivest. centrates its investments in “Our partnership with founder/family owned busiTrivest will be instrumental in nesses in the United States BUDD GOLDMAN helping Ellery successfully exEllery and Canada. ecute numerous strategies for Ellery’s founder and ceo, continued growth, including Budd Goldman, will conexisting product line expantinue as an owner of the business and sion, new product development and a lead Ellery’s daily operations. Trivest significant focus on the e-commerce Fund IV, with $325 million in com- channel,” said Goldman. HTT

1/7/2011 3:39:15 PM

January 10, 2011

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Peykar described 2009 and 2010 as a recessionary period that “is really the longest one since I’ve been in business. So this year we are hoping for some better results.” Stronger sales activity from retailers during the fourth quarter has given reason to hope for a brighter 2011, said Arash Yaraghi, principal, Port Washington, N.Y.-based Safavieh. “We are encouraged that retailers [were] actively buying and promoting product in the fourth quarter of 2010 and we expect this to continue as they see consumers respond,” he said. If this trend continues, suppliers will be better equipped with the many obstacles — stemming from raw material price hikes globally — they face this new year. SEE ATLANTA PAGE 22

Ellery Homestyles in Recap With Investment firm

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LAS VEGAS B-370 Jan. 24th-28th

MIAMI — Diversified home mitments, and Goldman provided equity for the transactextiles producer Ellery Homestyles LLC has comtion. Senior financing was pleted a recapitalization provided by Wells Fargo and with private investment firm Pepper Hamilton acted as Trivest Partners, which conlegal counsel to Trivest. centrates its investments in “Our partnership with founder/family owned busiTrivest will be instrumental in nesses in the United States BUDD GOLDMAN helping Ellery successfully exEllery and Canada. ecute numerous strategies for Ellery’s founder and ceo, continued growth, including existing product line expanBudd Goldman, will continue as an owner of the business and sion, new product development and a lead Ellery’s daily operations. Trivest significant focus on the e-commerce Fund IV, with $325 million in com- channel,” said Goldman. HTT

12/28/2010 6:14:38 PM 1/7/2011 3:39:15 PM

Home Textiles Today

Retail Briefs Dollar General Amps up Openings

ollar General plans to open 625 new stores in the new fiscal year, returning to a pace that had long characterized the value retailer, which operates more than 9,200 units. The plan includes expansion in suburban, rural and metro areas as well as entry into Connecticut, Nevada and New Hampshire. The company will also remodel or relocate 550 stores.

Macy’s Beefing up Online Staff

acy’s Inc. will add roughly 725 new positions over the next two years as it expands its online business for macys.com and bloomingdales.com The plan calls for expanding merchandising and marketing staff in macys.com and bloomingdales.com’s New York offices as well as adding operations positions in the San Francisco and suburban Atlanta offices. The company’s online sales grew about 29% during the first 10 months of the fiscal year on of 20% growth in 2009 and 29% in 2008.

Dillard’s Opens New Internet Fulfillment Center in Maumelle, Ark.

epartment store chain Dillard’s Inc. is setting up an Internet fulfillment center near headquarters, in Maumelle, Ark., to support the continuing growth of its online store at www.dillards.com. The site was formerly a Target distribution center, and Dillard’s has signed an agreement to purchase it. Dillard’s president Alex Dillard said the new hightech facility “will be optimally equipped with advanced distribution and fulfillment capabilities to support the growth of our Internet store.There are many positive changes currently underway at Dillard’s, and the enhancement of the online shopping experience at dillards.com is a major focus of our efforts.” He added that the site will provide “the capacity, the technology and the people” — 300 employees to be staffed there — to support the growth of Dillard’s Internet business. The Maumelle Internet Fulfillment Center will use the latest in fulfillment and distribution technology, including the highly advanced use of robotics combined with improvements in ergonomics, noise reduction and safety. Environmentally-friendly features of the new facility include less power consumption due to reduced conveyor usage as well as advanced energy-efficient lighting systems.

Pier 1 Imports Comps Rise

riven by increases in traffic, conversion rate and average ticket, comparable store sales for Pier 1 Imports Inc. jumped double digits – 10.3% – during December. Merchandise margins “remained strong” due to less promotional and clearance pricing than last year. Based on these improvements, Pier 1 Imports now expects merchandise margins to be at least 57.5% of sales for the fourth quarter, up from its previous expectation of 57.0% of sales.

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January 10, 2011

News

> hometextilestoday.com

Roger Milliken, 95 S PARTANBURG , S.C. — Roger

Milliken, known as much for his innovations in the textiles business as for his vehement defense of the American industry against exports, died on Dec. 30, 2010. Milliken, who remained as chairman of privately owned Milliken & Co., was 95 and the cause of death according to published reports was multiple illnesses including leukemia. While Milliken was primarily involved in the apparel fabrics business, it did have a goodsized home textiles business at one point, notably its Visa fabric, which was a staple of the tablecloth business. Milliken did not make finished products but was a key supplier to companies that did. Milliken took over what had been a family business called Deering. In 1947, at age 31 following the death of his father,

he ran the firm as ceo through 1983 when he turned over that role to a non-family outsider. But he remained the public face – and voice – of the company, no more so than in the fight over the North American Free Trade Agreement during the 1990s, a battle that he ultimately lost and one that he felt would bring an end of the Amer-

ican textiles industry as it existed then. He, of course, turned out to be right, but Milliken like other companies moved some operations overseas. None the less, he was the founder and key supporter of the original Crafted With Pride in the U.S.A. Council, which promoted Americanmade products. His outspokenness on the import issue was matched by his close-mouthed attitude about his own company. One report suggested that Milliken was doing $4 billion a year in 2000, but Milliken never acknowledged or confirmed those reports. It is unknown how large the company remains today or how extensive its involvement is in the home business. Services were held here for Milliken, who is survived by five children and nine grandchildren. HTT

Perfect Fit Steps up Hospitality Outreach C HAROLOT TE , N.C. — Perfect Fit Industries is moving to expand its business beyond traditional big box retailers, introducing solution-based bedding products to the hospitality and healthcare industries in partnership with the Asthma and Allergy Foundation of America (AAFA).

The products include a unique bedbug protection solution, an antimicrobial technology, an odor eliminating fabric treatment and a multi-component bedding program. Working closely with Perfect Fit institutional manager Ed Monks will be Geoff Hanff, a 22 year veteran in the hospi-

tality/institutional industry. “ T h e r e l a t i o n s h i p s h e ’s established via other categories such as sheets, along with his industry knowledge and our performance-based, competitively-priced products, will make us the perfect team,” said Jeff Chilton, president of sales and marketing. HTT

Kohl’s, Ross, TJX Cos. Update Guidance Following Strong December Comps N EW YORK — December comp

results that exceeded expectations compelled Kohl’s, Ross Stores and TJX Cos. to raise their guidance for the fourth quarter and full year last week. Kohl’s now expects earnings per share of $1.62 to $1.66 for the fourth quarter and $3.61 to $3.65 for fiscal 2010. Previous guidance was $1.58 to $1.66 for the fourth quarter and $3.57 to $3.65 for fiscal 2010. Ross Stores now projects earnings per share of $1.32 to $1.34, for a forecasted increase of 14%

to 16%, compared to $1.16 in last year’s fourth quarter. “Our merchants have been able to take advantage recently of a large amount of compelling close-out opportunities in the marketplace,” explained Michael Balmuth, vice chairman and ceo of Ross. “As a result, today’s guidance also reflects a projected timing benefit to distribution costs related to our expectation of higher pack-away inventory levels at the end of the fourth quarter.” TJX Companies now expects for fourth quarter diluted earn-

ings per share on a reported basis to be in the range of 70 to 71 cents compared to prior guidance, adjusted for the closing of the A.J. Wright business, of 62 to 64 cents per share. For its full year fiscal 2011, TJX now expects earnings per share in the range of $3.16 to $3.17, which costs related to closing A.J. Wright. This range is based upon estimated consolidated comparable store sales growth of approximately 3% to 4%, up from the prior guidance of 2% to 3%. HTT

1/7/2011 3:12:58 PM

Home Textiles Today

January 10, 2011

OPINIONTodaY How High Will They Go? “This time last year, buyers of all stripes rushed into the Heimtextil convinced they could find manufacturers willing to overlook their best interests and absorb higher raw material costs.”

ER E’S THE QUESTION FOR THE Y E A R : vice – if you’re going to by any clothes or textiles [in 2011] How high will they go? do it right away.” We’re talking retail prices. My response: “Me, too.” This time last year, buyers of all stripes Not that the advice of two industry-watchers – nor the rushed into the Heimtextil international home textiles spate of newspaper articles about rising prices during the fair convinced they could find manufacturers willing to past few months – are likely to galvanize consumers in the overlook their best interests and absorb higher raw materi- immediate term. Buying closer to demand has become a al costs. By and large, they didn’t. way of life for most U.S. consumers, particularly during What unfolded over the year was a differthe recession years. ent scenario: manufacturers and suppliers willAll parties continue to look for cost-cuting to take a big hit – but not to the extent they ting measures, but after more than a decade of were willing to commit financial hari-kari. Also squeezing costs out of the system (easily two, denew: retailers acknowledging publicly (mostly EDITOR-IN-CHIEF pending upon how much of the supply chain in quarterly calls to analysts) that price increasyou want to pull into the conversation), there are es were inevitable for the first time in years – no few efficiencies as yet unredeemed. matter how daintily they phrased it. The latest way: accounts bulk purchase their By all accounts, the steepest of the increases own raw ingredients and insist manufacturers won’t arrive until the Back-to-School season, but “buy” from that pool. From what I’m hearing, the real point of interest will be how de-speced these offers are being received coolly, if not enthe new goods turn out to be. tirely rejected. But, truth be told, I haven’t had In a conversation with a longtime industry enough conversations with enough companies consultant several weeks ago, he offered: “I’ve been tell- to know whether these are isolated incidents. ing my family and friends – solicited and unsolicited adBut I’ll be asking around Frankfurt this week. HTT

Jennifer Marks

Moving into a New Year “It’s time for this industry — suppliers, manufacturers, importers, product developers and whatever it is that any retailer deems to be ‘buyers’ — to step up to the plate. “

S W E MOV E MOR E aggressively into 2011, there there is an American design cachet that resonates already are some things that need to be more realistically in certain parts of the world, and there are other parts of discussed. the world that have not really been exposed to American The first is that the home textiles world is not design for the home — a facet of design that may or may the only user of textiles sourced globally. The segment is not be globally translatable. very low down on the food chain. Since the goods basically are produced in the same Next, the industry needs to be more realistic geographical areas — China, India, Pakistan about specing and pricing product — especialand Turkey for mainstream product — the dely on the part of the big boys. I think that 2010 sign factor is the key element that separates the finally taught them that there is no king. Yes, United States from everywhere else. It’s been FOUNDING some will be more equal than other, but not exever thus, and probably is part of our DNA. EDITOR-IN-CHIEF tremely so. Then there is the new consumer — no matAs the fiber price equation continues to roll ter what the age bracket — who has too many on, retailers will have to understand the new price/value ways to get product information, communicate about equation. Products will be de-speced to meet a price and product specifics and make decisions that are totally out quality goal while quality levels will be abandoned for en- of the realm of how we did business in the past. tire product capabilities. Over the past year or so, the retail marketplace has Also, looking ahead to Heimtextil this week, it was only been hearing a great deal about “new discoveries” on how a year ago in talking about international markets and how to do business in online and in social media with today’s Americans work within this sphere, an industry executive increasingly independent consumer. noted — as I have over the decades — that Americans are Then there is the basic issue of newness and fashion viewed internationally as fair weather friends. forward-ness in the home textiles world. For entirely too When business is good here at home, export is ignored. long this business has been dominated by a pervasive “this Come a downturn and suppliers wonder how they could was a winner last season, so we want something like it for have been so blind to the opportunities abroad. Now that next season” mentality. the U.S. business is showing signs of life — albeit not so It’s time for this industry — suppliers, manufacturers, strong as many would like — it will be interesting to see importers, product developers and whatever it is that any how much that attitude changes. retailer deems to be “buyers” — to step up to the plate. We have seen a realization among many suppliers that HTT

Carole Sloan

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> hometextilestoday.com

360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com EDITOR-IN-CHIEF Jennifer Marks 375 South End Avenue #32U New York, N.Y. 10280 (212) 945-9151 | jnegley@hometextilestoday.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 16 E. 96th St., New York, NY 10128 Tel: (212) 831-8266 | Fax: (212) 831-0814 PRODUCT EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com COPY EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com ASSOCIATE PUBLISHER Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/MIDWEST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, CHINA Nancy Yu Tel: 86 (0) 21 5126 0111; Fax: 86 (0) 21 6539 0321 nancy@oceaniamedia.net MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | kj_reeds@yahoo.co.in ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com VP, PUBLISHING DIRECTOR Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com

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THE WEEKLY BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010 Telephone: (646) 805-0227 Fax: (646) 365-2307 USPS 497-490 HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 29 times a year except for the weeks of 1/3, 2/14, 2/28, 3/20, 4/11, 4/25, 5/2, 5/16/,5/30, 6/13, 6/27, 7/4, 8/1, 8/15, 8/29, 9/5, 9/26, 10/17, 10/31, 11/14, 11/28, 12/12, 12/26 by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3731 NW 8th Ave, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2011 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail and $525.00 for airmail. All payments must be made in U.S. currency. Subscription inquiries: HOME TEXTILES TODAY, PO Box 5879, Harlan, IA 51593-1379. Phone: (866) 456-0405. HOME TEXTILES TODAY and THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. (Posted under Canadian International Publication Agreement No.40624074. Sandow Media/CDS (Mint Hill) POSTMASTER: Send address changes to HOME TEXTILES TODAY, P.O. Box 5879, Harlan, IA, 51593-1379 Email: HTTcustserv@cdsfulfillment.com. Return undeliverable Canadian addresses to: RCS International; APC; PO Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6

1/7/2011 3:18:35 PM

The Lessons of Christmas 2010

O, DID YOU GET what you wanted from Santa last year? Whether you were naughty or nice, chances are you didn’t find absolutely everything under your tree, menorah or kinara this time around. But there were a couple of other things PUBLISHER/ out there, yours for the taking, if you were EDITORIAL DIRECTOR paying attention. They are the lessons learned from the 2010 Christmas shopping season. 1. The Experts are Pretty Stupid. The so-called authorities maintained their near-perfect track record by once again missing the boat on their predictions for how business would be for holiday. Almost every one of them said there would be modest — at best — gains and that the season would get uglier and ever more desperate as the clock ticked down to Santa-time. Instead we ended up with one of the more robust shopping seasons anyone has seen in a long time, good not just by recent standards but by historical standards. The suits blew it again. And by the way, did you notice that MasterCard’s Michael McNamara had replaced Marshall Cohen of NPD as the most overquoted-to-death expert out there? 2. Reports of the Death of the American Consumer Have Been Largely Exaggerated. We don’t know about you, but we’re getting pretty sick and tired of everyone saying the American shopper has changed and they will never start spending again. Remember when they said the same thing after 9/11? Remember the decade of unparalleled excess and exuberance that followed? The American consumer is just that: A consumer. If she knows she’s not going to lose her job and she’s adjusted her expectations on what both her house and her 401k are worth, she is going to buy stuff. And she did. 3. Inventory Management Works. Imagine that? One of the most basic principles of retailing — controlling your stock levels and adhering to the philosophy that the occasional stock outage is better than the frequent overstock — actually turns out to be true. We still think the consumer has caught on to this faster than most retailers, but no matter, the message is finally getting through. 4. Luxury Lives. Remember when everyone said Neiman’s and Nordstrom’s and all that crowd were endangered species? Turns out that was another colossal miscalculation, and the better goods segment of the marketplace is doing just fine. Yes, maybe some of the more obscene extravagances of the past decade have faded away, but the federal government has made sure that we won’t be needing to run any benefit lunches for the rich and famous anytime soon. 5. Sales Still Work But They Aren’t the Only Thing That Does. We saw just as many sales, promotions and events as ever and they were effective, but lots of stores did very nicely with other strategies too, be it limited inventory, in-store activities or “gotta-have” items. In fact, the latter continues to be the secret weapon of smart stores. Whether it’s Tickle-Me-Elmo or the latest Apple fruit-of-the-day, consumers have shown they will buy something they really want … and they will pay just about whatever it takes. If only the home textiles industry could ever find a sheet set that people just had to have. 6. Maybe This Online Thing is Going to Stick Around. OK, so this is not exactly a new lesson, but for those die-hards who keep thinking that the Internet is just going to be a small factor when it comes to consumer spending, this Christmas should finally have been the proof to see how wrong they really are. There will always be stores. They are as much a social experience as a functional activity. But get used to online as perhaps the single most important factor in the entire shopping process. That’s maybe the single biggest lesson to be learned from Christmas 2010 That and, oh yeah, you can regift something monogrammed, can’t you? HTT

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Warren Shoulberg

Home Textiles Today

January 10, 2011

> hometextilestoday.com

Supplier Giants: Less Gigantic Than Before BY JENNIFER MARKS NEW YORK — In what is surely a

product of years of globalization, price deflation and the atomization of the home textiles industry, this year’s Top 15 supplier ranking is remarkable for what’s happening at the top of the chart. Last year’s Supplier Giants report marked the first time in more than 20 years in which the lead supplier generated less than a billion in sales. Just 10 years ago, the top three suppliers all generated well over a billion in volume. This year, Mohawk moves into the top spot with just $620 million in sales. Also not able — and perhaps unexpected — Springs and WestPoint both held onto the ranking each claimed last year, No. 2 and No. 4, respectively. Their results for the year, however, couldn’t be more different. Springs Global’s U.S. sales tumbled mightily – down 45%. WestPoint Home, on the other hand, had a good year – on the

top line, at least – with sales up 12%. But neither figure should be taken on its face as a sign of trajectory. Springs Global invested heavily last year in the U.S. brand division, unveiling an ambitious program under license from Diane Von Furtsenberg that includes hard home as well as Spring’s traditional home textiles products. The company inked additional licenses as well, nearly all of them, like DVF, multicategory (including hard goods), intended to be distributed internationally as well as domestically — and with retail flagship stores on the board in some cases. WestPoint late in the year received some bad news: After 29 years of working with WestPoint for its bedding and bath programs, Ralph Lauren Home announced last month it is taking production in-house. WestPoint hangs on to the utility bedding piece of the program, and executives there say some Lauren production will take place at WestPoint’s offshore plants. But the extent to which that will play out is uncertain, and WestPoint will have to scramble to replace

Momeni Expands into Broadloom C ARLSTADT, N.J. – After more

than 35 years of developing hand-knotted, hand-tufted and power-loomed area rugs to the home textiles industry, familyrun Momeni Inc. is expanding into broadloom. Set to soft-launch this month during the upcoming Atlanta International Area Rug market, Momeni’s new broadloom collection features “cutting-edge designs as well as the classics in beautiful color palettes and tones,” the company said. Each grouping is made from high-quality wool, many of them carrying the Wools of New Zea-

land brand and featuring hand finished edges and carved details. “We are also a proud partner to Wools of New Zealand and have been named as one of their 150 premier partners in broadloom,” Momeni said. True to Momeni’s signature style, design options include soft contemporary, transitional and relaxed patterns in sophisticated color palettes. The line’s official launch is set for late January in Las Vegas at the Surfaces and the Las Vegas World Market events. HTT

the business. Welspun USA continued to amass more market share, but with its corporate parent in India devoting energy to expansion elsewhere (not to mention the U.S. economy), growth came at a slower pace. Given the investments the company has made in capacities for manufacturing fashion bedding, bath rugs and utility bedding, as well as a recent foray into decorative pillows, it’s likely Welspun will become a top 5 supplier in multiple categories in the coming years. Rapidly diversifying Alok US makes it debut appearance on this year’s ranking at No. 5. The company in recent years has diversified beyond sheets and is making a bid to become a leader in fashion bedding, blankets and decorative pillows. Alok is also growing its bath towel business. Also new to the Top 15 is 1888 Mills, the U.S.-based manufacturer that also has production in Pakistan and Bangladesh. But towels were the catalyst for growth last year, bedding was, and 1888 Mills is also branching into apparel for the healthcare and service industries through its new cut-and-sew facility in Ghana. HTT

Carpenter Video Makes Time’s 10 Best List R I C H M O N D , VA . — A music

video commissioned by Carpenter Co. and its SleepBetter. org consumer website has been named by Time.com as one of the top ten “Talented Web Videos” for 2010. Creative team Rhett & Link created a rock ballad titled “My Favorite Pillow” for a video entitled “2 men and 600 pillows.” Since its Sept. 14 release, the video went viral, with nearly four million hits on either the video itself, the “making of” video or the bonus footage. Total visitors to SleepBetter.org since the launch have reached more than 266,000. SleepBetter’s Facebook page has added more than 9,000 since the project debuted. HTT

1/7/2011 3:28:34 PM

Home Textiles Today

January 10, 2011

Top 15

HTT’s Top 15 Supplier Giants Mohawk Home

Est. ‘10 Sales

‘09 Sales

% Change

2 (’09)

$620

$629

-1.43

2 1 (’09)

Springs Global USA Est. ‘10 Sales

‘09 Sales

% Change

$542

$996

-45

Welspun USA Est. ‘10 Sales

‘09 Sales

% Change

3 (’09)

$498

$444

4(’09)

Est. ‘10 Sales

‘09 Sales

% Change

$423

$375

Est. ‘10 Sales

‘09 Sales

% Change

$396

Carpenter Est. ‘10 Sales

‘09 Sales

% Change

$308

$261

Sleep Innovations

Est. ‘10 Sales

‘09 Sales

5 (’09)

$275

$300

htt110101_006_008 6

SIGNIFICANT EVENTS The US division of Brazil-based Springs Global is in transition mode as major accounts took the volume private label business that was long a mainstay of its sales directly to offshore manufacturers. For the Springs Global Corporation, the good news is that a robust Brazilian market now accounts for 44% of sales. The US operation pivoted last year by going after big brands that can offer international distribution as well as sub-branded mass distribution opportunities at home. New licenses include Diane Von Furstenberg, Sami Hayek and Water Works as well as the reintroduction of Springmaid as a Target exclusive and Cindy Crawford Home at JCP.

While its corporate parent, Welspun India, is generating strong growth from Europe, the UK, the domestic market in India and other parts of the globe, the US division was able to capitalize on China’s woes despite higher raw material pricing. Welspun USA unveiled a new label with designer Tom Felicia, struck an agreement with Louisville Bedding for distribution in Canada and forged an alliance with Kojo Worldwide to step up its global reach in the hospitality arena. The biggest news of the year came in the form of a corporate restructuring just ahead of the fall market which brought in US industry veteran Barry Leonard as president and ceo after more than eight years at the helm of Glenoit/Excell/Croscill.

Anyone who hadn’t been paying attention would be surprised at the strong sales growth at WestPoint Home, now a division of billionaire investor Carl Icahn’s Icahn Enterprises Inc. But after a truly miserable 2009, WestPoint was able to leverage its production facilities in Bahrain and Pakistan to take advantage of the retailer-direct flight from China in the face of higher labor costs. New introductions included the launch of Caribbean Joe and Hanes in bed and bath. But the company faces a formidable challenge in 2011 as Ralph Lauren Home, its longtime upstairs license, takes some production in-house. WestPoint retains the utility bedding business and says it has assurances that some of the fasion bedding and bath production will take place at its off-shore plants.

SIGNIFICANT EVENTS Making its first appearance on the Top 15, Alok Industries’ US division, Alok

Alok US

NA (’09)

9 (’09)

SIGNIFICANT EVENTS Up against what it described as another tough year, Mohawk Home traded a steady rate of unit volume sold at retail for a decrease in dollars as retailers downshifted to lower price points. Consumers traded down from higher-end wovens to cheaper-priced goods, such as tufted and printed constructions, that they could afford. As a result, the company said its market suffered a 15% to 20% price erosion in the rug business. Mohawk’s tufted and printed rug segments, which carry $49 to $99 retail-priced pieces, grew by about 5% while wovens and other better goods within the $149 to $199 bracket struggled. Bath rugs kept the pace, but the highlight for Mohawk in the year was its doormat segment, which grew 16.3% to $64 million. New placements at retail for existing and new product introductions like its Chrome-rubber mats pushed numbers upward by double digits.

SIGNIFICANT EVENTS

WestPoint Home

5 6

(sales in $millions)

SIGNIFICANT EVENTS

> hometextilestoday.com

% Change

-8

expanded its U.S. customer base with a company-owned U.S. distribution facility. Proprietary/ trademark features like Sheersoft, Optifit and Alpha Cotton were well received and helped in growth. Towels, a relatively recent addition for the sheet manufacturer, gained firm footing – and the company expects huge growth in the category going into 2012. Alok also expanded into several new categories, including blankets, decorative pillows, and tote bags.

SIGNIFICANT EVENTS Working in the better end of the market, Carpenter responded to higher raw material costs by raising its prices. It also experienced growth with its drop-ship program for internet retailers — an especially strong channel for bed pillows. In addition, Carpenter stepped up its consumer marketing and commissioned a music video — “2 men and 600 pillows” — that went viral with some four million hits.

SIGNIFICANT EVENTS It was a year of transition for Sleep Innovations, which brought in a new executive team led by Michael Thompson, ceo. In addition to new gel bead technology infused into memory foam to take its core pillow and topper business to a new level, Sleep Innovations expanded into foam furniture pieces and products aimed at college-dorm dwellers, senior citizens, pregnant women and new mothers to expand its distribution options.

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Home Textiles Today

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Pacific Coast Feather

Est. ‘10 Sales

‘09 Sales

% Change

6 (’09)

$289

$284

-3

Est. ‘10 Sales

‘09 Sales

% Change

7 (’09)

$274

11 (’09)

> hometextilestoday.com

SIGNIFICANT EVENTS PCF completed plant consolidations into its new facility in Henderson, N.C., and also opened its first production plant in Europe. The company saw slight increases in mattress pads and pillows, but did well in the comforter category. A key factor now and moving forward: managing margins and focusing on in-store productivity, the company reported.

SIGNIFICANT EVENTS Shaw continued to focus on its eco initiatives while revamping its ap-

Shaw Living

9 10

Top 15

proach to the rug business through the consolidation of its production distribution domestically, the launch of new selling tools for retail partners and the marrying of some of its successful broadloom programs with a healthy assortment of coordinating area rugs. Shaw sought to improve efficiencies by embarking on the first phase of the consolidation of its rug distribution facility at Ringgold, Ga., for machine-made woven and tufted rugs. Finally, Shaw created synergy between its broadloom business and its area rugs by forging the two with a special new program dubbed Woven Expressions.

SIGNIFICANT EVENTS Hollander saw an increase in sales across all categories for 2010. According to the company, new merchandising and marketing initiatives as well as increased market share in a variety of distribution channels paved the way for an increase. The company also added several licenses to its portfolio, including Waverly and Homedics.

Hollander Home Fashions Est. ‘10 Sales

‘09 Sales

% Change

$272

$246

Maples Rugs

Est. ‘10 Sales

‘09 Sales

% Change

8 (’09)

$260

SIGNIFICANT EVENTS Even though Maples Rugs had a good year in bath rugs, the company took some hits in its rug division in 2010. In the end, it left the company’s total sales unchanged from 2009 at $260 million. Maples’ bath rugs experienced an 8% growth – to $130 million from $120 million in 2009 — thanks to placement gains with discounters and mid-tier department stores for its Invista-branded performance products. Encouraged, the company added in the fall a higher-ticket collection to the licensed program – Invista Luxura – which is a 990-denier nylon microfiber that for Maples represents its “top-of-the-line” bath rug. Offsetting that increase was the 7% decline in sales of area and accent rugs, to $130 million from $140 million the prior year, despite the company’s efforts to bring eco-friendly PET-fiber-made assortments in shag and other constructions.

SIGNIFICANT EVENTS The table linens and kitchen textiles categories for Town and Country Living

12 10 (’09)

13 13 (’09)

Town and Country Living Est. ‘10 Sales

‘09 Sales

% Change

$247

continued to be anchor businesses for this longtime supplier of multiple products, including bath, fashion top-of-bed and decorative pillows. Armed with an ever-growing catalog of licenses spanning juvenile through adult markets, Town and Country kept its business even with 2009. Both the table linens and kitchen textiles business posted flat sales for the year, with $174 million and $73 million again, respectively. It overcame raw material and production- and distributionrelated price increases via strong product development and new product introductions as well as in-roads at retail with additional placements and new business. The company’s list of licenses includes KitchenAid, Farberware, Paula Dean, Debbie Mumm, Ralph Lauren, and Disney. Revamped and expanded its value-oriented assortment by developing a new category of rugs that hit a more promotional price bracket than previously offered by the company. The new line targeted national mass accounts, and it worked out, helping boost OW/Sphinx’s 2010 sales by double digits. Also aiding the company last year were other factors. The Cairo, Egypt-based parent restructured it corporate operation, benefitting the U.S. segment. New Axminster product offerings and middle-price goods were also a highlight at retail for OW/ Sphinx. And finally, Oriental Weavers Group’s reorganized and rebranded its hospitality carpet and rug company, Cambridge Weavers Ltd.

SIGNIFICANT EVENTS

Oriental Weavers/ Sphinx Est. ‘10 Sales

‘09 Sales

% Change

$242

$218

11%

(revised)

1888 Mills

Est. ‘10 Sales

‘09 Sales

% Change

NA (’09)

$240

SIGNIFICANT EVENTS Moving to break free from the maw of no-name private label production,

CHF Industries

Est. ‘10 Sales

‘09 Sales

% Change

12 (’09)

$224

$215

htt110101_006_008.indd 8

SIGNIFICANT EVENTS The towel manufacturer still produces in the United States — although the bulk of its volume is done through international partnerships. 1888 Mills continued to build out its kitchen towel business while racking up solid sales gains in its core bath towel line. The company’s total sales (not refected here) also include commercial and retail bedding as well as commercial apparel.

CHF over the past few years has focused on national brand programs, which constitute 75% to 80% of its business. The company brought Kate Spade back into bed and bath through a licensing deal and continues to be one of the innovative suppliers in the juvenile bedding area.

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Home Textiles Today

Top 5

January 10, 2010

> hometextilestoday.com

Supplier Giants Bath Accessories 1. Allure Home Creation Boonton, N.J.

’10 Sales $mil

’09 Sales $mil

$80

% Chg.

Comments

In light of the struggling economy, Allure turned its focus to building up its basics business, creating more free-standing options, and developing more value-oriented promotions..

Central Islip, N.Y.

-9

Unit sales were up significantly thanks to new freestanding opening price point USA-made plastic ensemble sets that sold well at major discount stores; on the flip side, imported coordinated ensembles sales were less strong.

3. Croscill Home

The company maintained flat sales despite multiple cost increases thanks to strategic planning efforts in managing its business.

-42

Springs has begun putting more emphasis on higher-margin, nationally branded programs that can deliver better margins.

2. Creative Bath Products

New York

4. Springs Global USA New York.

5. Ex-Cell Home Fashions New York

1. Mohawk Home Sugar Valley, Ga.

2. MaplesRugs Scottsboro, Ala.

3. Shaw Living Dalton, Ga.

4. Springs Global USA New York.

5. Faze Three Ltd. Columbus, Ind.

’10 Sales $mil

’09 Sales $mil

$196

130

120

Shaw’s bath business remained fairly static over the year, as price points and distribution remaining solid.

-47

Sales in this category continue to fall victim to retaildirect programs from large accounts.

Faze Three gained some additional placements and experienced a mild recovery of some current programs that had suffered slightly.

Comments

The company managed to hold sales in line with last year by churning incremental gains in market share. Maples saw its bath rug volume increase in the year as the company picked up additional placement with its discount and mid-tier retail customers.

Bath Towels 1. Welspun USA New York

2. 1888 Mills Griffin, Ga.

3. Trident New Delhi, India

4. WestPoint Home New Yorkk

5. Springs Global USA New York.

As was the case with a sister category, shower curtains, bath accessories top five players struggled in 2010. Basics in promotional price brackets were the preferred route shoppers took throughout most of the year. Suppliers responded with simple freestanding styles priced affordably. The result was a status quo year for most of this list, and some declines for others.

The company maintained flat sales despite multiple cost increases thanks to strategic planning efforts in managing its business.

Bath Rugs % Chg.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$284

$261

Despite higher cotton prices, Welspun expanded its volume in a category where it already has a heavy penetration.

180

173

1888 Mills used its production capabilities in the United States, Pakistan, and Bangladesh to hold the line on costs as much as possible.

157

145

Trident/Abhishek Industries recently completed the expansion of its terry towel capacity to 374 looms, adding 24 new looms and upgrading 18.

114

110

Innovations like its bleach-resistant caught fire last year and helped move the category out of a me-too commodity posture.

130

-30

Comments

Wrap-Up For the top five bath rug suppliers, 2010 was a respectable year with acceptable flat sales for some and much appreciated gains for others. Pricing pressure affected all the major players, but for the most part they were able to overcome hurdles in the year. Maples and Faze Three were most successful, producing significant gains in light of the stillchallenging economy. Category suppliers are now bracing for steeper obstacles in 2011, when they will have to battle shortages and steep price increases for cotton as well as for oil-based fibers, all of which ultimately intensify pricing pressures.

Wrap-Up It was a good year to have towel production located outside of China, where the rising labor costs combined with sharply higher cotton costs to make what is almost always a 100% cotton product more expensive. Towel manufacturers also rolled out “quick dry” towels – lighter-weight products that sought to avoid higher retails as much as possible by using an eco-friendly spin.

Strong demand from Brazil consumers more of the parent company’s resources, Springs embarked on an ambitious brand-building strategy this year.

Source for all chart information: Home Textiles Today market research.

htt110101_010_020.indd 10

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Home Textiles Today

Top 5

January 10, 2010

> hometextilestoday.com

Supplier Giants Blankets 1. Sunbeam Boca Raton, Fla.

2. Berkshire Sugar Valley, Ga.

3. WestPoint Home New York

4. Springs Global USA New York.

5. Pendleton Woolen Mills Portland, Ore.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$121

$118

-2%

Dollar volume hampered by price depression and expanded number of companies playing in the electric blanket category.

Price pressures continue to loom large, but company credits creative supply management and adding new accounts for its good performance.

WestPoint added some branding muscle to the category with the launch of Carrebbean Joe and debut of Hanes, building on the Izod franchise it unveiled in 2009.

-18

Higher raw material prices and major accounts’ emphasis on going direct impacted the category.

Pendleton credited a multi-channel approach and a diverse customer base with the increase. The company also benefited from locking in a supply of lower cost wool.

Comments

Comforters ’10 Sales $mil

1. Springs Global USA New York

2. Royale Linens/Yunus Kearney, N.J.

3. WestPoint Home New York

4. Welspun USA New York

’09 Sales $mil

% Chg.

-29%

Springs is looking to rebuild the fashion bedding business with the creation of diffusion lines – more commonly know as sub-brands – for some of its new marquee brands, especially DVF by Diane Von Furstenberg.

Pricing pressures were a problem, but the company responded with more blended product.

After a soft 2009, WestPoint Home began regaining placements..

Production in Mexico as well as India helped give Welspun a major cost advantage in a year characterized by price increases.

-22

The Croscill brand – now a part of the aggregated Croscill/ExCell/Glenoit company – is still looking for a purchase in a category now dominated by retail house brands and exclusive licenses.

$124

$174

5. Croscill Home New York

Comments

Curtains/Draperies 1. S. Lichtenberg New York

2. CHF Industries New York

3. Ellery Homestyles New York

4. Croscill Home New York

5. Springs Global USA New York.

’10 Sales $mil

’09 Sales $mil

% Chg.

$159

153

The consumer shift to value products boosted Lichtenberg, which does a big mass market business. The company also mourned the passing of president Herbert Lichtenberg, who passed away after more than 40 decades at the helm.

A focus on coordinates for its national branded business at key retailers as well as a stepped presentation of fashionforward energy-saving constructions helped push sales.

The company had its best year in the category, with its Eclipse brand and overall offerings gaining shape at retail.

-10

The company is looking to tap its design background in this area to revitalize sales in what had once been its core strength.

-42

As Springs has shifted its emphasis to branded fashion textiles with better margins, its role in the curtain sector continues to dwindle.

Comments

Overall, the category had a good 2010, with Mother Nature providing the cold weather and an improving economy providing the cash. Price pressures abound, but many found new channels to focus on, including increasing their online presence. New companies continued to enter the category, especially fashion bedding producers seeking ways to expand their total volume.

Wrap-Up In an abrupt turn from the heady days of globalization, the number of pieces stuffed into a bag dropped as manufacturers and buyers look for ways to hold the line on retail pricing – as much as possible. Blends became a bigger factor to offset higher cotton pricing, while textural prints swung into action along with embellishments to offer better perceived value.

Wrap-Up Black-out and energy-saving constructions created a lot of buzz, with several companies jumping into the fray after the watching Ellery Homestyles’ Eclipse curtain explode off shelves. Cotton constructions fell to poly, but many suppliers managed to step up the hand of synthetic goods. Another notable entry in the field in 2010 was Louis Hornick’s introduction of Firefend, the first fire-retardant fashion window covers for residential use.

Source for all chart information: Home Textiles Today market research.

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1/6/2011 5:30:57 PM

Home Textiles Today

January 10, 2010

Top 5

> hometextilestoday.com

Supplier Giants Decorative Pillows 1. Brentwood Originals Carson, Calif.

2. Spencer N. Enterprises El Monte, Calif.

3. Arlee Home Fashions New York

4. Home Fashions International New York

5. Newport/Layton Home Portland, Ore.

’10 Sales $mil

’09 Sales $mil

% Chg.

$138

Margin pressure caused by the volatile raw material markets was partially offset by strong growth in the company’s outdoor cushion business.

Business remained steady as the company lost some placement with a few customers but recovered that business by gaining new placements with other major retailers.

Refocused design direction to expand product mix with new basic and embellished looks for broader appeal.

10%

Despite losing some placement at a major discount department store, the company gained significant additional business with new and existing retail customers.

The company’s retail customers moved the merchandise as shoppers picked up their spending in the category; continued successes with the outdoor cushion business.

Comments

Down (& Down Alt.) Comforters ’10 Sales $mil

’09 Sales $mil

% Chg.

$88

$83

Modest growth came from existing and new customers in the retail and hospitality sectors. Cost pressures resulted in lower unit sales at some retailers, but Downlite was still able to grow business overall.

A solid year for PCF in this category, the company credits its branded goods and its value-added offerings for the uptick.

-4

Unprecedented costs in everything from labor, freight and materials made it a challenging year for the company.

-9

Phoenix sold fewer items in higher price points, ending down for the year. Its staple products did better, according to the company.

Hollander reported it gained share through product development initiatives as well as through brand offerings to end the year on an upswing.

1. Downlite Mason, Ohio

2. Pacific Coast Feather Seattle

3. Blue Ridge Home Fashions Irwindale, Calif.

4. Phoenix Down Totowa, N.J.

5. Hollander Home Fashions Boca Raton, Fla.

Comments

Foam Pillows/Toppers 1. Carpenter Richmond, Va.

2. Sleep Innovations West Long Branch, N.J.

3. Sleep Studio New York

4. Hudson Industries New York

5. Louisville Bedding Louisville, Ky.

’10 Sales $mil

’09 Sales $mil

% Chg.

$299

$251

19%

Carpenter introduced Avena, a new memory foam technology, and combined several of its solutions technologies into new items.

234

255

-8

With a new executive team on board, Sleep Innovations put its efforts into the developing foam products beyond its core pillow and pad business to reach other channels of distribution.

Hudson reports that volume growth cam from new Polar Foam line, a major uptick in e-commerce placement and overall category growth.

-12

Sales were down for Louisville, which continues to concentrate on benefits and solutions based products in all its bedding categories.

Comments

Growth came from an expansion of its customer base for its ViscoFresh memory foam toppers and pillows.

Wrap-Up The decorative pillow category proved “recession proof” for the top players, as retailers across the board – from discounters to department stores – had success with these affordable accessories for the home. As a result, three Top 5 suppliers posted sales gains and the remaining two managed to stay flat over 2009. For Brentwood and Newport, the outdoor living segment of the business was a sales driver in the year. For the others, it was a matter of shifting placements, losing space in some cases but offsetting that with new business elsewhere. Also supporting category growth was the pet cushion segment.

Wrap-Up Brands led the category, which overall showed a significant drop in units sold. Raw materials costs took their toll as well. Companies that were able to manage or pass along increases saw better results.

Wrap-Up The category is still heavy on new technologies and promises of better sleep. Cooling gels were a big trend in 2010, as companies continued to develop products that produced comfort nirvana for recession-weary consumers. So far, the category has remained largely immune to the direct-sourcing trend among big box retailers. But like every other category, foam got hit with higher raw material prices.

Source for all chart information: Home Textiles Today market research.

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1/6/2011 5:32:33 PM

Trident_revise.indd 1

12/13/2010 11:08:52 AM

Home Textiles Today

January 10, 2010

Top 5

> hometextilestoday.com

Supplier Giants Kitchen Textiles 1. Town and Country Living New York

2. Franco Manufacturing Metuchen, N.J.

3. The John Ritzenthaler Co. West Conshohocken, Pa.

4. 1888 Mills Griffin, Ga.

’10 Sales $mil

’09 Sales $mil

% Chg.

$73

Franco Mfg. continued to make strides in its kitchen textiles business by maintaining placements and expanding its licensed offerings.

3.3

The company’s overall business stabilized, and new product introductions were well received at retail.

18.5

New placements and business was gained for the company’s utility products, increasing sales steadily another year.

Elrene maintained its core placements at retail as well as expanded its seasonal offerings. Additionally, the company added two new solid-colored kitchen toweloven mitt-pot holder set programs.

5. Elrene Home Fashions New York

Wrap-Up

Comments

The company continued to develop new products and make in-roads at all levels of retail; the company also saw success with its roster of licenses.

Mattress Pads 1. Louisville Bedding Louisville, Ky.

2. Perfect Fit Charlotte, N.C.

3. Pacific Coast Feather Seattle

4. Hollander Home Fashions Boca Raton, Fla.

5. Springs Global USA New York

The slow economy kept people at home and cooking in their own kitchens, away from restaurants, sparking sales of kitchen textiles. Utility products were a driver, not surprisingly, and 1888 Mills stood to gain with new placements and strong category sales. Basic goods, such as solid-colored looks, were also a hit in 2010, as were pre-packaged sets and ensembles that could retail at more promotional price brackets.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$69

Still a leader in this category, the company got kudos for its patented Expand-A-Grip feature in a year with flat year to year results.

-9

Business remained flat, and inched down in mattress pads, mostly driven by direct import placements according to the company.

A soft category in the last few years, PCF held its own with an emphasis on protection capabilities as well as comfort.

Increased market share by growing our better mattress pad business, reacting to consumer’s needs that concentrated on added features and benefits.

-52

Commodities businesses were hard-hit last year, especially as production shifted out of China to other countries.

Comments

A difficult year for mattress pads. Taking a cue from other utility categories, mattress pads were outfitted with new features and benefits.

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1/6/2011 5:38:53 PM

MesseFrankfurt_Jan10th.indd 1

12/23/2010 5:18:54 PM

Home Textiles Today

January 10, 2010

Top 5

> hometextilestoday.com

Supplier Giants Rugs

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

Comments

$360

$377

-4.5%

Top line sales were slightly down due to industry-wide price compression, but the company maintained its retail placement and overall units shipped.

220

Units were up slightly but dollars were flat due to consumers’ increasing demand for lower price point rugs at the expense of higher-end products.

218

The company expanded market share in the promotionally priced category as retailers sought value to attract customers; the Axmisnter product lines and mid-priced products also helped drive sales; and rug pad sales jumped.

Saddle Brook, N.J.

148

145

The company expanded its more affordable price point assortments by manufacturing new machine-made varieties and moving them at the discounters.

5. Maples Rugs

130

140

-7

Maples Rugs increased placement with existing retail customer base, but was hit as some of those chains shut units.

1. Mohawk Home Sugar Valley, Ga.

2. Shaw Living Dalton, Ga.

3. Oriental Weavers/Sphinx Dalton, Ga.

4. Nourison Rug

Scottsboro, Ala..

242 (revised)

Sheets & Pillowcases 1. Alok Industries US New York

2. Springs Global USA New York.

3.Divatex New York

4. Welspun USA New York

5. WestPoint Home New York.

’10 Sales $mil

’09 Sales $mil

% Chg.

$243

Alok’s core category management to power away even as the company has moved into fashion bedding, dec pillows, blankets and towels.

178

287

-38

Although Springs sources from around the world, rising costs in China and tough currency exchange from its parent company’s production base in Brazil impacted business.

175

165

Solid growth for the company, which prides itself on running at maximum efficiency.

171

143

Welspun continues to gain traction, focusing on solutions placements.

103

100

WestPoint Home began to build back business using new brands and a host of solutions-oriented products. Its production on Bahrain gave it a cost advantage as cotton prices were shooting up globally.

Comments

Shower Curtains 1. Maytex Mills Yonkers, N.Y.

2. Ex-Cell Home Fashions New York

3. Allure Home Fashions Boonton, N.J.

4. Creative Bath Products Central Islip, N.Y.

5. Springs Global USA New York

’10 Sales $mil

’09 Sales $mil

% Chg.

Comments

$109

$91

19.5%

The double-digit increase was driven by placement gains at most major retail customers’ stores for Maytex’s new and innovative product introductions.

The company maintained flat sales despite multiple cost increases thanks to strategic planning efforts in managing its business.

In light of the struggling economy, Allure turned its focus to building up its basics business, creating more free-standing options, and developing more value-oriented promotions.

-9

Customer orders were sluggish in the first half of the year and then picked in the back half, but not enough to offset earlier losses; sales of liners increase over fashion goods.

-36

In what was a difficult year for many in the category overall, Springs devoted more of its energies to categories where fashion and branding lead.

Just as it did last year, price deflation hit rug suppliers again in 2010. But this time, category suppliers were more prepared to tackle it – somewhat. Low-end through upscale rug players on this list came out en force with sharper priced products, largely in the synthetic machinemade category but also in handtufted categories, to drive sales. The tactic helped OW/Sphinx earn a low double-digit increase, Nourison rise a couple of points and Shaw maintain flat sales. And even though synthetic rug manufacturers Maples and Mohawk suffered declines, their efforts to ante their value-driven assortment prevented them from suffering steeper losses.

Wrap-Up Indian mills got a big boost this year as higher costs in China combined with higher cotton costs to send buyers scrambling for cost savings wherever they could find them. Sheet manufactures responded by amping up blended products.

Wrap-Up Similar to its bath accessories counterpart, shower curtain sales in 2010 proved a mixed bag of results among the top suppliers, as only Maytex Mills posted a gain – and significant, at that. As consumers largely held off on redecorating their bathrooms with new looks, category players focused on the basics and sharp price points. The second half of 2010 saw sales pick up but only slightly, leaving suppliers with flat to negative results for the year.

Source for all chart information: Home Textiles Today market research.

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1/6/2011 5:40:05 PM

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Home Textiles Today

Top 5

January 10, 2010

> hometextilestoday.com

Supplier Giants Sleep Pillows 1. Hollander Home Fashions Boca Raton, Fla.

2. Pacific Coast Feather Seattle

3. Louisville Bedding Louisville, Ky.

4. Perfect Fit Industries Charlotte, N.C.

5. Springs Global USA New York.

’10 Sales $mil

’09 Sales $mil

% Chg.

$197

$180

Growth for Hollander came from market share gains (new and existing retailers) and new placements from an expanded brand portfolio.

134

133

Pillows were a mixed bag for PCF, with its upper tier offerings faring better.

Offering body pillows, dust-mite and allergen reduction items and other benefit-specific products, Louisville continues to market itself as a solutions-based company.

Pillows remained flat pace to the year before, with the company reporting sales were good on better pillows.

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Comments

New York

2. Elrene Home Fashions New York

3. Bardwil Linens New York

4. Homewear Linens New York

5.Windham Weavers New York

’10 Sales $mil

’09 Sales $mil

% Chg.

$174

The company continues to develop new products and make in-roads at all levels of retail; the company also saw success with its roster of licenses.

Elrene enjoyed organic growth with its programs at major mass merchants, and the company also saw its retailer-supported ecommerce business rise considerably.

Bardwil’s growth continues to stem from its solid-colored tablecloth and placemat business, as well as from successful sell-throughs for its licensed brands — Lenox, Tommy Bahama and Vera.

Market share gains helped the company continue on its annual trend of sales increases, as did successes with its private label and Homewear-branded products at retail.

Windham maintained all of its placement programs with its existing roster of retail customers.

Comments

Throws

Boca Raton, Fla.

2. Manual Woodworkers Hendersonville, N.C.

3. Ellery Homestyles New York

4. Berkshire Blanket Sugar Valley, Ga.

5. Downlite Mason, Ohio

Wrap-Up As the nesting trend persisted among cash-strapped consumers, table linens suppliers stood to gain in 2010. Consumers still too cautious to spend on restaurant dining opted to eat in and entertain at home, giving them cause to spend their limited discretionary dollars on new fashions for their tables, especially evergreen looks like solids. The result: A healthy year for top category players in an otherwise still-challenged economy. Top five list newcomer Homewear Linens/Sam Hedaya Linens staked fourth place, bumping Windham Weavers down a notch.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$109

$93

17%

The family-owned company, now in its third generation, jumped on the bird motif trend while continuing to offer a broad assortment of styles.

Ellery “held its own” in this category, reporting solid results across its customer base.

New fabrications and designs helped create interest in the category, which managed an increase at the end of the year.

Downlite’s growth in this category continues to be fueled largely by its exclusive licensed brands. (Company includes filled blankets and throws in the category.)

1. The Northwest Company

Still the workhorse category of utility bedding, pillows stood firm in 2010. Features and benefits touted everything from pillows designed for side sleepers to those that can help with snoring.

During the year, responsbility for much of the company’s business shifted to the New York office, with utility bedding left in compay’s traditional headquarters in Fort Mill, S.C.

Table Linens 1. Town and Country

Wrap-Up

Comments

Northwest reported its strongest year ever due to its profitable licensing partnerships. Evergreen properties such as the NFL allow the company to play at virtually every retail tier.

The biggest event in this category was the shuttering in late 2009 of longtime power player Biederlack of America, which was brought down when a major customer shifted the business into direct sourcing. The German parent company has been putting some programs into the market at the higher-end niche sector. Overall, licensing remains the key component in this category. Trends such as faux fur also gave the category a lift.

Source for all chart information: Home Textiles Today market research.

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Rug Facts

> hometextilestoday.com

January 10, 2010

Home Textiles Today

Rug Suppliers Struggle to Overcome a Second Year of Setbacks BY CECILE B. CORRAL N E W YO R K — Impacted by

pricing pressures, the area and accent rug industry’s distribution shifted somewhat in favor of discounters and other valueminded mass merchants in 2010. As consumers focused on lower-priced goods at affordable retail stores, unit volume remained relatively even, but total dollar volumes fell. As a result, according to research by Home Textiles Today the accent and area rug industry took a 5.3% sales hit in 2010, taking volumes down to $3.55 billion from $3.75 billion the prior year, when the industry has just suffered the much harder blow of an 18.5% sales decline. By distribution channel, discount department stores continued to lead the pack with a 35.2% share of total sales, or $1.25 billion. In a faraway second place were direct-to-consumer retailers, who took 16.8%, translating to $600 million. Mid-price chains occupied third place with an 8.4% share, or $300 million of total sales, fol-

lowed closely by home improvement chains’ 7.5% share, or $270 million. Ending the year with the smallest piece of the rug pie were department stores at $30 million, or 0.9% of total sales. “Lower price points have caused some markets to shrink dramatically. Most retailers have been focused in the area of $149 or less for a 5-by-8,” said Wade Maples, co-owner of Scottsboro, Ala.-based Maples Rugs. The company has long been among the top five category suppliers, reporting $130 million in sales for 2010. “Ret ail price points have come down, and that takes it to where you need to sell a lot more units to do the same in dollars that you had been doing,” he added. “And that is the big change in the market.” Maples said he considers himself “lucky” to have reported a single-digit decline — 7.1% — in sales in his area/accent rug business for 2010 from last year’s $140 million in sales. “Our business was good but not great and it was because of the decline in average price per

Area Rugs Distribution Channels

(billions)

2009 total retail sales: $3.55 billion Down 5.3% from $3.75 billion in 2009 2010

2009

% CHANGE

Discount department stores Home improvement centers Furniture stores Mid-price chains Direct-to-consumer Carpet/floorcovering stores Home textiles specialty chains Department stores Off-price chains Warehouse clubs Variety/closeout Gift/home accent stores and single-unit specialty textile stores Other

$1.25 0.27 0.16 0.30 0.60 0.18 0.19 0.03 0.13 0.11 0.13

$1.28 0.28 0.17 0.31 0.63 0.21 0.21 0.03 0.14 0.12 0.13

-2.3% -5.3% -9.4% -4.2% -5.3% -12.1% -12.0% -5.3% -2.7% -5.3% -2.6%

0.16 0.05

0.18 0.06

-13.2% -5.3%

Total

$3.55

$3.75

-5.3%

Discount department stores include Kmart, Shopko Stores, Target and Wal-Mart. Home improvement centers include Home Depot and Lowes as well as regional and local home improvement centers. Mid-price chains include JCPenney, Kohl’s, Mervyn’s, Meijer, Fred Meyer, Sears, TJMaxx/ Marshalls, Stein Mart and Ross Stores. Direct-to-consumer includes television shopping channels, Internet and catalog sales Variety/Closeout includes stores such as Dollar General, Family Dollar, Freds, Value City, Tuesday Morning and Big Lots. Other includes interior designers and military exchanges Source: Home Textiles Today market research

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unit at retail,” he explained. Also down was Sugar Valley, Ga.-based Mohawk Home. Sales for the company, which is the longtime leading area/ accent rug supplier, saw its sales decline by 5% to $360 million from $377 million last year. To blame: Pricing pressures, noted general manager Bart Hill. “We maintain shelf space and retail placement, but like everyone else, we were hurt by retail compression,” he said. “And this was against another pretty tough year [2009].” Hill said consumers shopped over the year for soft floor coverings, but traded down from better goods like wovens to cheaper price point tufted constructions, among other more affordable goods like polypropylene, that retail. “About the same amount of units was sold as last year, but we saw a 15% to 20% price erosion,” he estimated. Reflecting the year’s pricing shifts was the 5% growth in Mohawk Home’s tufted and printed rug business, Hill said. Its $49 to $99 retails “held up fine last year.” However, the company’s higher-end wovens in the $149 to $199 range “struggled,” he said. On the other end of the sales spectrum last year was the smaller and younger yet rapidly growing Surya Inc. rug company, which churned 47% increases. Seth King, vp sales and marketing, said the company’s growth stemmed mostly from its emphasis on serving furniture stores — big and small — and design firms. “We turned our focus to providing them with the right price points and styles and services on them,” he explained. But like its more large-scale competitors, Surya was forced to create “a more promotional program” that for the first time in the company’s history included $99 5-by-8 rugs, which include machine-made heat-set polypropylenes. “Our core has always been mid-tier to high-end, but this year we went more promotional. Now our prices include $99,

$129, $149, $179 and $199.” This new pricing strategy landed Surya a new set of customers, King said: lower-end furniture stores and mom-and-pop retailers. Still, the mid-tier market is Surya’s strongest sector, despite pricing shifts at retail. “The $299 to $699 price bracket is still the bulk of what we do,” he noted, “with $299 to $399 being our most popular price point range.” After overcoming two challenging years, suppliers surveyed by HTT said they were eager to quickly turn their attention to the New Year, which most are facing with some hope but much appreciation, understandably. Greenville, S.C.-based 828 International Trading Co. president, John Shepherd, cited “manufacturing costs, shipping costs, and currency exchange are [three] big areas to watch” in 2011. Raw material price hikes pose one of the biggest sources of stress, they agree, even though in the long run they could have positive effects — namely, higher retail price points. “With inflation from raw materials, we have got to get retails back up or the industry is really going to suffer,” warned Hill. “We feel with raw material prices continuing to go up, that retails have got to go up, too. And we see this across the board, not just in rugs.” Shaw Living, in Dalton, Ga., expects to “continue to see increase in units sold, but decreases in selling price as consumers continue to look for value,” said brand manager Kim Barta, as well as a “continued difficult economic climate and conservative consumer shopping.” For this reason, Shaw is forced to “continue to find new ways to create value for the consumer,” Barta said. Allen Robertson, vp of sales for Troy, N.C.-based familyrun Capel Inc., said the company is anticipating a 3% to 5% sales increase, “and we feel certain that prices will have to be increased as raw materials continue to increase in price. The price of wool and cotton are

going to be volatile for the foreseeable future. The middle class market in both China and India are growing rapidly and demanding higher quality. Our clients are looking for upgraded rugs while at the same time requesting low price high volume loss leaders. We are working to supply both needs.” On the same vein, Robertson said another “significant challenge” in 2011 will be “keeping costs in balance with demand. Hand-knotted rugs will continue to be in limited supply. The trend toward Soft Contemporary and Transitional styling should translate into higher average sales for the mid price levels.” Dallas-based Feizy Imports & Exports has managed “for some time now to keep from passing [raw material price] increases on to our clients due to our strong relationships,” said Leah Feizy, assistant to the ceo. She did not say if Feizy would continue that strategy this year. Rather, she said the housing market’s “slow recovery” recently is giving the company cause to be hopeful for “some growth within the industry. We have already seen an upswing from our year-to-date 2009 figures, and definitely expect this trend to continue across all of the home furnishings and accessories categories.” Still, she admitted the country’s economic recovery remains slow, posing a danger for many rug suppliers. “Another stall in the recovery could really be the nail in the coffin for some of the smaller home furnishing and floor covering stores that have been hanging on with all their might for some time now,” she continued. “On the other hand, all of the tougher competition has forced retailers and manufacturers alike to become more creative and inventive with their marketing techniques and product development. We’re seeing some of the most exciting new products in years and are coming up with amazing ways in which we can market them with very little investment.” Also being creative with prodSEE FACTS PAGE 24

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Home Textiles Today

Atlanta Rug Market ATLANTA FROM PAGE 1

“Raw material prices have increased in China and as a result the dollar is weakening there,” Yaraghi continued. “We forecast that prices will continue to increase in 2011, so we are

January 10, 2010

reducing costs to compensate. Safavieh is doing this by using new materials, new constructions and techniques that provide the values consumers want without sacrificing quality.” Carlstadt, N.J.-based Momeni sees price “on everyone’s minds as we get ready for the upcoming markets” and as such is launching “a great selection of beautiful

Rugs

machine-made collections that won’t break the bank,” said Marlys Giordano, director of marketing and new product development. Examples include: the Dream collection, a group that features a drop-stitch technique for textural looks; Belmont, an assortment of elegant traditional designs made in a dense polypropylene construction; and sev-

> hometextilestoday.com

eral design additions to the Sydney, Sensations, Delhi, ’Lil Mo, Spencer and Veranda. Safavieh is launching its latest designer license — Ralph Lauren — which targets a higher retail set. “We see cross-merchandising opportunities with Ralph Lauren licensing partners as a new avenue for added exposure to an

entire new category of customers,” Yaraghi said. “The partnership gets us into new retail categories like furniture stores and international export. We’re seeing tremendous interest from Europe, Asia and even the Middle East because the Ralph Lauren brand is so strong overseas. That’s plusbusiness for Safavieh.” While lower priced products have been churning sales at retail, suppliers are hoping to bring retailers and shoppers back to the mid- and even in some cases high-end brackets. “It’s good to offer a variety of products that appeal to a lot of different retails, and the lower price points are what kept us afloat in 2010. We made it a big emphasis of our last year,” he said. “But now we’re starting to push back to the middle because the problem with lower prices is that even though we sell lots of units, it is hard to keep up in dollars.” For Atlanta’s market, Nourison is bringing rugs “that fall in all price categories,” Peykar noted, “including some more exciting product that retail for $299 to $1,499 for a 5-by-8.” Surya Inc., based in Calhoun, Ga., last year ramped up its offering of more aggressive rugs to help along sales even though the crux of its business — midtier $299 to $399 hand-crafted pieces and better machine-mades — was largely credited with helping Surya increase total sales by 47% in 2010. “That is where we are really strong, and these rugs we focus on furniture stores,” said Seth King, vp of sales and marketing. Dallas-based Feizy Import & Export is making several adjustments in its backend to accommodate business shifts and overcome hurdles caused by price hikes in 2011, noted Leah Feizy, assistant to the ceo. “We are assessing our internal systems for upgrades that will help us improve our efficiency both domestically and internationally, and we’re also revamping our marketing/advertising themes, which we do every year,” she explained. A d di t i o n a l l y, Fei z y h a s “refined” its palettes for the many new collections the company is presenting at market. “Really excited” about the new year is Steve Mazarakis, SEE ATLANTA PAGE 24

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Home Textiles Today

Atlanta Rug Market ATLANTA FROM PAGE 22

who heads the rug division of Linon Home Décor Products. “We are introducing what I believe to be great products for this economy,” he said. “2010 was still very tough, but I got a good read on what our customers can sell, and the ones that survived are selling good looking low-priced goods.” Also going the way of designer licenses is familyowned-and-operated Capel Rugs in Troy, N.C., with is new line of Kevin O’Brien-branded rugs. “New textile designer Kevin O’Brien is bringing some exciting, creative new looks, some of which are targeted specifically at bedrooms since Kevin has been successful with top-of-bed products as well,” said Allen Robertson, vp of sales. Capel also plans to announce in the early spring some new promotional events for its dealers, he added. HTT

Rug Facts FACTS FROM PAGE 21

uct development and streamlining business operations to overcome raw material price hikes — now and later — is Port Washington, N.Y.-based Safavieh – a high-end designer rug house. “Raw material prices have increased in China and as a result the dollar is weakening there. We forecast that prices will continue to increase in 2011, so we are reducing costs to compensate,” said Arash Yaraghi, principal. “Safavieh is doing this by using new materials, new constructions and techniques that provide the values consumer’s want without sacrificing quality.” Social media will be Somerset, N.J.-based Kas Rugs’ tactic in 2011 to stir customer interest – and ultimately, sales, said key account manager of sales and marketing Wendy Reiss. “We have a new cat alog launching now, a new Facebook page just launched with a contest for a free iPad with buyers who ‘friend’ us between now and Jan. 17, and also a new website which will be launching just prior to January market.” HTT

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January 10, 2010

Rugs

> hometextilestoday.com

Atlanta Rug Introductions 828 INTERNATIONAL TRADING CO. Greenville, S.C. (800) 733-0828 New to the company’s roster is the Sienna collection of floral designs interpreted on a two-toned background for a space-dyed effect. Sienna rugs are made of 100% polyester and are hand-hooked in China. Available sizes range from accent through room sizes. cmi Pawtucket, R.I. (800) 343-9339 The longtime braided rug company is showing seven new collections. Allure features sleek lines and fashionable hues in a trend-right heathered look. The construction is 65% polyester and 35% wool and colorways are juniper, sparrow, polo blue, misted green, mauve-berry, and haystack. Montego is a 100% polypropylene outdoor style in vibrant colors — tangerine, sundance, blue burst, lime twist, bonfire, and bright brown. Renaissance is a Sunbrellabranded group for indoor and outdoor use. Made of 100% Sunbrella acylic, this reversible and stain resistant collection comes in mink, mushroom, graphite, papyrus, wheat and alpaca. Portico is a 100% polypropylene outdoor collection made of 100% polypropylene. Its colorways include sharp black, nautical, edamame, chile, espresso and sand. Parkview spans contemporary designs paired with traditional colors made for use in patios and kitchens for their easycleaning 100% polypropylene construction. Blokburst is a grouping of soft chenille rugs blended with a hint of ticking fabric for a look fit for a playroom or bedroom. Made of 60% polypropylene, 35% polyester, and 5% cotton, the rugs come in six pastel colors. And Olivera is cmi’s “homesweet-home” introduction, with its Thimbleberries-branded fabric colors and durable alternating braid construction of 70% polyester and 30% cotton. CAPEL RUGS Troy, N.C. (800) 334-3711 Convertibles is a new collection that offers a dual-sided tufted construction for a two-for-one

price look. Made in the black, sky blue, red, cream, taupe, chocolate and mocha colorways, these rugs feature varying textures of loop and cut pile. There are 14 patterns spanning transitional, traditional and modern styles on these hand tufted in India woolen rugs. A new collection with Kevin O’Brien is in Capel’s spotlight. Made to match with the designer’s other home textiles collections, namely bedding, these rugs depict a variety of modern spring-inspired patterns. The rugs are made in India, where they are hand tufted from pure wool. COURISTAN Fort Lee, N.J. (800) 223-6186 The Five Seasons Collection answers to Couristan’s growing indoor/outdoor rug selection. Made of 100% Courtron polypropylene, the company’s proprietary synthetic fiber, these power-loomed rugs from Turkey are now available in several new designs. Among them is Sundial, an intricate tile motif on a flat-woven face. These rugs are set to retail for $109 for a 5-by-8. Hitting a higher price bracket — $199 — is the power-loomed 100% heat-set Courtron polypropylene Moonwalk collection. Designs include the whimsical shag Spindle Leaf design, which is Wilton woven. Moonwalk rugs are made in Belgium.

Couristan’s Moonwalk EBSIONS HAROUNIAN RUGS New York (212) 686-4262 The hand-made rug importer of Middle and Far Eastern products is launching its new Urth collection. Comprised of seven antique central Persian and Anatolian designs, the collection is available in four color combinations. The rugs are made of natural fibers and come in accent through room-size dimensions.

HAROUNIAN RUGS INTERNATIONAL New York (212) 213-3330 The company is expanding its private label program with several new additions — all handcrafted in India and made of wool and/ or synthetic fibers. These skus are made to order according to retailers’ specifications. HRI is able to make custom sizes, colors, and qualities to accommodate retailers’ varied price point brackets. KARASTAN Dalton, Ga. (800) 234-1120 Karastan is bringing back its Heritage Kirman, a “70-year-old beauty,” the company said, with a “revitalized” look. Heritage Kirman Crimson is based on a classic rug that Karastan originally introduced in 1941. It draws its inspiration from antique textiles of Persia with its curvilinear and graceful floral designs, rich color, the intricate use of multiple borders and a field featuring blooms and arabesques. Karastan is adding it to its Original Karastan Collection, and is offering it in three colorations: a traditional palette featuring crimson and neutral browns and tans with blue accents; and two updated palettes focusing on fresh, fashion-forward shades. Heritage Kirman Crimson is woven on an Axminster loom of New Zealand wool. KAS RUGS Somerset, N.J. (732) 545-1900 Kas is adding several new floral designs to its 100% wool Chateau collection of hand-tufted and hand-carved rugs from China. The suggested retail is $499 for a 5-by-8. There are seven available sizes from scatter to room size as well as runners and rounds. Colroways include taupe, buttercup, and midnight. ORIENTAL WEAVERS/SPHINX Dalton, Ga. (800) 832-8020 Odyssey is a new collection of cross-woven rugs, each offering the look of a handmade piece but in a more affordable and family-friendly fiber and construction. The cross-weaving technique utilizes various shades of each of the 36 colors giving patterns depth and texture. Colors include azure blue,

citrus green, deep plum, bright copper, slate gray, dark brown, champagne and warm camel, and designs span casual transitional and modern contemporary styles that showcase oversized medallion motifs, organic geometrics and fresh new florals. Machine woven of 100% polypropylene in Egypt, a 5-by8 Odyssey rug is set to retail for $399. Montego is another new collection, this one donning colors inspired by the fresh and bright hues of nature such as citron green, clean terracotta, bright mineral blue, fresh ivory and deep cocoa brown. The collection aims to offer a modern twist on classic design and help update traditional outdoor decor. This indoor/outdoor collection is machine-made of 100% polypropylene in Egypt. SAFAVIEH Port Washington, N.Y. (516) 945-1900 At the forefront of Safavieh’s new product debuts is the new Ralph Lauren Home and Lauren By Ralph Lauren collection. Also new for market from the company is a slew of new collections and additions to existing lines. Florida shag contemporary patterned rugs are in the queue for Safavieh, which developed a proprietary collection called Florida Shag. It includes abstract interpretations of landscapes and animal prints made on Wilton machines in Turkey of 100% polypropylene. Safavieh is also showing a new hand-tufted ikat collection using designer-quality Peshawar wool for vibrant color and the unique Peshawar abrash technique. The collection encompasses eight patterns that are handtufted in India. The South Hampton collection is being enhanced with five new designs in multiple color ways. These rugs are hand-loomed of a blend of polyester, wool and cotton and feature a palette of ombre tones, solid neutrals and subtle touches of metallic sparkle. Still going strong is Safavieh’s Martha Stewart collection, which for market is being expanded with several new options. The SEE INTROS PAGE 26

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Introducing four new â&#x20AC;&#x153;Scattegoriesâ&#x20AC;? of designs - part of the ACCENTuate collection of scatter rugs from Oriental Weavers. From apples to zebra prints... Scattegories has a little something for everyone.

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Home Textiles Today

Rug Introductions INTROS FROM PAGE 24 MSLO design team has created a comprehensive collection that includes hand-knotted Nepalese and Tibetan rugs, high quality hand-tufted designs made in India to replicate the expensive hand-knotted look, and dense micro-hook petit-point rugs created in China to simulate the vintage looks in fresh new colors. Among the rugs in this new collection are: Autumn Woods, a free-flowing flower-and-vine motif evoking images of meticulous crewelwork embroidery; Chevron Leaves, which is inspired by a vintage printed paper and de-

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January 10, 2011

picts a foliage design dramatically increased in scale to create an elegant stripe; and Colorweave Plaid, which depicts the enduring beauty of Scottish tartan fabrics but takes on a new look with Colorweave Plaid, a graphic pattern that puts a fresh spin on tradition with original color combinations and high-quality hand-tufting. SHAW LIVING Dalton, Ga. (706) 965-0954 To its Tommy Bahama Home collection, Shaw Living is adding new designs in golds, neutrals and ocean-inspired color combinations for a modern look that coordinates with current accents and fabrics. The rugs are machine woven in the United States with Shaw’s own EverTouch-proprie-

Rugs

tary recyclable nylon. The Angela Adams collection is also being enhanced within the Modern Comfort grouping with organic modern designs instituting an earthy palette that compliments the marriage of contemporary and casual. These rugs are machine woven in the United States with EverTouch nylon. Two new shag programs are Bravo and Watercolors. Bravo is produced with Shaw Living’s soft and durable ClearTouch reclycled PET fiber, which is certified to contain 25% post-consumer content and is also treated with Shaw’s patented R2X stain and soil resistant system. Available in six sizes from scatter to room size, its varying palette featuring 12 color options.

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Watercolors is made with Shaw’s BCF nylon 6 fiber, which is soft and recyclable. Its marbleized look stems from variations in color depth like those found in nature. SURYA INC. Calhoun, Ga. (706) 625-4823 With Hoffman, Surya said it bringing back the psychedelic 1960s with this new collection of tie-dyed rugs from India. Hand-loomed from 100% wool, these rugs are made to make a bold statement in any room. The striking color palette ranges from crimson to charcoal. Organic Moderne wears a contemporary design and a vibrant color palette for an edgy rug collection. Hand-tufted from 100% New Zealand wool, these rugs are made in India.

With fashionista Bob Mackie, Surya has created the Moderne collection based on the legendary fashion and costume designer’s costume and formalwear designs. The rugs are hand tufted 100% New Zealand wool rugs are highlighted with art silk adding to the glamour of the collection And with lifestyle guru B. Smith, Surya has developed a new rug collection of 100% New Zealand wool hand-tufted pieces that are made in India. Finally, the Zuna collection of lattice-pattern rugs uses colors specifically chosen to coordinate with contemporary home furnishings trends. Designed by Jill Rosenwald, a ceramics artist, Zuna uses a hard-twist texture and hand-carved details.

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January 10, 2011

Rugs

Winter 2011 Rug Preview

> hometextilestoday.com

Encouraged by an improved sales pace in the back half of 2010, area rug suppliers are marching into the New Year with a bevy of fresh looks set to roll out at the various winter markets kicking off in January. Suppliers said they are rapidly filling their appointment books for the markets, giving them cause to feel assured that buyers are returning to their showrooms to write orders and stock their shelves with new products in the coming months. Whether traditional or modern, new looks are meeting somewhere in the middle with many nature-inspired palettes and organic design elements dominating the season’s trends. “We are seeing big trends in tonal and textured looks,” explained Steven Peykar, principal, Saddle Brook, NJ-based Nourison. “So we have developed a number of new lines that utilize multiple textures, whether by using different yarns or different constructions like hand-made with cut-and-loop textures or others.” Here is a sampling of some major rug suppliers’ latest product introductions for winter 2011. HTT

1 3

4 5

1. Surya Inc. is launching the new Moderne collection with designer Bob Mackie. Inspired by his costume and formalwear designs, these handtufted New Zealand wool rugs feature faux silk highlights. Moderne rugs are made in India. 2. Mohawk Home is expanding its licensed collection with Woolrich with several new designs, including this one titled Cedar Run. 3. Ebisons Harounian Imports is launching its new Urth collection, which spans seven antique Persian and Anatolian designs in four color combinations. 4. Rizzy Rugs is showing Avant Garde, a Tibetan hand-knotted and handspun semi-worsted rug made in a New Zealand wool and viscose blend. Designed for the high-end market, a 5-by-8 is set to retail for $1,799. 5. Oriental Weavers/Sphinx’s new Montego collection from Egypt uses a palette of citron green, terra cotta, bright mineral blue, fresh ivory and deep cocoa brown. Giving a modern twist to classical design, these 100% polypropylene machine-made rugs are made to complement outdoor living areas. 6. F.J. Kashanian Rugs new Indo-Peshawar collection of handmade rugs from India comes in a variety of designs, like this one titled Maharaja in the aqua-and-ivory colorway.

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January 10, 2011

Rugs

> hometextilestoday.com

Winter 2011 Rug Preview 2

1. Nourison’s Lake rug is hand tufted in the company’s heaviest dense wool pile. Made in India, its construction is 75% New Zealand wool and 25% viscose. Designs are transitional and abstract. 2. cmi is launching seven new collections, including Olivera. These pieces employ Thimbleberries fabric colors and durable alternating braid construction. Made of 70% polyester and 30% cotton, Olivera reversible rugs come in dusty shale, soft black, vintage blue, light parsley, cranberry blend, and warm chestnut. 3. Company C’s new Mayfield rug, seen here in the cream colorway, is part of the Summer Brights collection of painterly floral hooked rugs made of 100% wool. 4. 828 International Trading Co. is introducing the Ellington collection of traditional and transitional styles. Made in India, these 60-count wool-and-silk rugs are hand-tufted and acid washed and feature some hand-carved details. 5. Shaw Living’s designer collection with Angela Adams grows this market with the addition of Modern Comfort, a grouping of machine-woven U.S.A.-made rugs constructed of the company’s “EverTouch” nylon fiber.

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January 10, 2011

Rugs

> hometextilestoday.com

Winter 2011 Rug Preview 1

6 1. The Rug Market’s new Expressions collection comprises designs that are “all things trendy, hip and sophisticated” with looks like this one titled Whirl. These synthetic fiber rugs are being added to the company’s Ecconox line of value-priced products. 2. Capel Rugs’ new Daisy Climber Vine is one example of several rugs by designer Kevin O’Brien. Made in India, this collection is hand tufted from pure wool. 3. Harounian Rugs International is adding various new designs to its growing private label program of hand-crafted rugs made from wool and/or synthetic fibers. These skus are made to order to retailers’ specifications, including custom sizes, colors, and qualities. 4. Creative Home Ideas’ Figaro is a two-color cut and loop accent rug. It features a latex non-skid back, and is machine washable. 5. C & F Enterprises Inc. is introducing the Parfait collection of hand-hooked washable rugs and matching decorative pillows. Designs are seasonal, like this seashell pattern. 6. Momeni is expanding its machine-made offerings with several new collections as well as design additions to some existing, including the Sensations collection.

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Home Textiles Today

January 10, 2011

> hometextilestoday.com

PEOPLETodaY Nourison Hires Roberts SADDLE BROOK , N.J. — Nouri-

son has appointed 20-year home furnishings industry veteran Sabrina Roberts to the position of director of national accounts. She comes to the company from J.C.Penney, where she managed the startup and early growth of its jcp.com home division as well as served as the retailer’s senior buyer of area

and accent rugs. In her new job, Roberts is responsible for opening and development of key national accounts and assists with expanding business among present national retailers. She splits her time between her home in Dallas and Nourison’s headquarters here, where she will help expand placement for Nourison’s extensive prod-

uct collections. “We are very excited to have such valuable executive. Sabrina knows the industry well and brings with her proven creative merchandising experience,” said Steven Peykar, principal. “We know she will make an immediate and lasting impact for Nourison across our many product divisions.” HTT

Sferra Promotes Within Product Development Team E DISO N , N. J. — Fine linens

producer Sferra has promoted a number of executives to new positions. The appointments follow the departure of creative director Aaron Stewart, who has joined Martha Stewart Living Omnimedia as head of home products development. Susanne Martinez has been promoted to vp of design and product development. Martinez has been with Sferra for eight years as director of product development and has taken on

this larger role overseeing design of all products Sferra offers. Tara Frazier has been promoted to director of product development. Frazier has been with Sferra for six years and will now lead all of Sferra’s product development activities. Elyse Taormina has been promoted to product development associate, working with Martinez and Frazier in all facets of product development. Taormina has been with Sferra for three years. Liz Rapelye has been pro-

moted to director of marketing and public relations. Overseeing all advertising, branding activities, marketing and press relations, Rapelye has been with Sferra for four years. Sferra has also made Jennifer Nowakowski an exclusive sales represent ative for the Midwest. She previously was regional sales executive for Scandia Down covering states west of the Mississippi. Prior to that, Nowakowski worked with Anne De Solene and Peacock Alley. HTT

NRF Elects Members to Advisory Council WASHINGTON — The National

Retail Federation’s associate member advisory council has elected two retail industry professionals to join its membersonly committee.

They are: Dean Hillier, a partner with the consulting firm A.T. Kearney, where he serves as the global leader for the firm’s Retail Center of Excellence; and Tom Ritt-

man, vp of marketing for The Retail Equation, responsible for branding, demand generation, product marketing, and marketing research and communications. HTT

Cartisano, Solivan Join BCP Home N EW YORK — BCP Home has hired Nancy Cartisano to the newly created position of coo. BCP Home is the parent company of Sander Sales, Arrow Home Fashions and W-C Home Fashions. Cartisano will report directly to Peter Weintraub, ceo, and is located at the company’s New

York office. She was most recently with Sure Fit as senior vp of sourcing and product development. Also joining BCP Home is Jackie Solivan, as executive coordinator. Jackie had been working at P/Kaufmann and joined the firm in September. She will report to Cartisano. HTT

K&A Hires Barkin for New Home Division ATLANTA — Kleber & Associates

(K&A), an integrated marketing agency specializing in home and building products, has opened a new furniture and home fashion division and has tapped Jordan Barkin as account executive for the division. Barkin is a former associate editor at Hearst Magazines who produced articles about furniture, home fashion and kitchens for the shelter magazine Veranda. He recently interviewed design icon Bunny Williams and Jim Thompson, silk’s North American vice president, for a new K&A blog, furnitureandhomefashion.com.

Barkin’s primary responsibility will be to launch K&A’s new division, expanding its “Right at Home” mantra. “For years, I have wanted to focus holistically on the home, not just installed building products,” said agency president Steve Kleber. “Draperies, sofas, decorative tile and floor treatments make a home just as much as the foundation and walls do. I see our furniture and home fashion division as coming full circle, and Jordan will be instrumental in that shift, as he has exceptional experience tailoring messages to desired demographics.” HTT

NRF Announces Winners of Annual Retailer Awards WASHINGTON — The National

R e t a i l Fe d e r a t i o n h a s announced the recipients of its annual retailer awards, and this year’s honors will go to Nordstrom, The Container Store, Urban Outfitters and Sir Philip Green of Arcadia Group (which includes Topshop, Wallis and Burton). Executives from these companies will accept their awards d u r i n g t h e N R F ’s A n nu a l Retail Industry Luncheon on

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January 11 at the organization’s Annual Convention and EXPO. The event is scheduled during NRF’s BIG Show, which is scheduled January 9 to 12 at New York City’s Jacob Javits Center. “In this highly competitive industry, it’s important for retailers to break away from the mold and push their company to new heights,” said Matthew Shay, NRF president and ceo. “Every year we search to find those who

continue to do just that. We applaud each of this year’s winners and are thrilled to honor them in front of their peers.” The Gold Medal Award will go to Kip Tindell, chairman and ceo of The Container Store. At the helm of this store since it first opened its doors in Dallas in 1978, Tindell is credited with creating the first-ever retailer devoted solely to storage and organization products. Glen Senk, ceo of Urban

Outfitters Inc. will receive the Retail Innovator of the Year award. At his post since May 2007, Senk’s career with the company began in April 1994 when he joined Anthropologie as president of what was then a single store prototype. International Retailer of the Year will go to Sir Philip Green of Arcadia Group. And the Silver Plaque goes to Sheryl Garland, vp, senior counsel, risk management, Nor-

dstrom. NRF’s Annual Convention and EXPO brings together 18,000 retail executives and vendors from more than 60 countries together for educational and networking opportunities. NRF’s EXPO floor, open on Monday and Tuesday of the Convention, hosts more than 600 exhibiting companies and features one-of-a-kind pavilions displaying the latest in retail technology. HTT

1/6/2011 5:28:00 PM

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Home Textiles Today

January 10, 2011

> hometextilestoday.com

First Monday: Specialty Retailing

Independent Retailers Report Healthy Holiday Sales BY JILL ROWEN Independent retailers across the country reported very happy holidays, as shoppers returned to stores in solid numbers. Beyond selling gift items for the season, retailers reported good traffic, and a return to spending on luxury items — from custom linens to furnishings for vacation homes. “[The holiday] was a turning point for our company in both profits and sales,” said Richard Smith-Allen, owner of Warm Things in San Rafael, Calif. “People were having fun shopping.” According to Smith-Allen, over the years the store was consistently visited by shoppers outfitting their vacation mountain homes. That business disappeared with the recession, but it’s now back, he noted. Best sellers for Warm Things included down comforters, throws and pillows. “We had a great holiday season, and were up quite a bit from last year,” said Vickie Blanchard, co-owner of Fraiche on the Avenues, Richmond, Va. The store has a thriving bridal registry and did well with custom linens from Matouk. Custom shoppers typically spent between $150 to $300. “People that want quality were definitely inspired to spend,” noted Pearl Fitzgerald, owner of Classic Home Inc., in Lake Como, N.J. Throws, as well as sheets and bedding from Home Treasures were all doing well. The store also sells baby bedding and accessories, which is a strong year-round seller. Mrs. Howard, a chain of stores servicing interior designers, found its customers purchasing more than last year, as people were more spirited about decorating for Christmas. Owner Phoebe Howard, a designer herself, noted that small design accessories, including decorative pillows were a hot item. “People were investing in quality,” noted Laura Colangelo, manager of The Brass Bed of

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Denver. Upscale SDH linens as well as robes and throws were big sellers for the stores: “Everything for updating the master bedroom and getting the guest room ready for the mother-in-law,” she noted. Colangelo also noticed more color, with customers buying outside the neutral box. “Things are going well for us, even as the January white sale is going on,” said Penny Murphy, owner, Pioneer Linens, West Palm Beach, Fla. “We’re very fortunate to be in a seasonal area, so we get a lot of people fixing up their homes.” Offerings from Sferra and Home Treasures were among Pioneer Linens’ better performers. Pioneer Linens will be celebrating its 100th anniversary in 2012. The store was founded by Max Greenburg and run by industry veteran George Greenberg before daughter Penny Murphy took the helm. “We were busier than I expected,” said Jenny Mutter, owner of Hestia Luxury Linens, Covington, La. Though her customers had money to spend even during the worst of the economy, Mutter noted that everyone still wants to make sure they are getting a good deal. Bamboo sheets are currently her biggest seller, with other “green” items also sparking interest. Location, location, location is a prime consideration for independent retailers and was also a factor both before and after the Christmas holiday. Jeff Mulert, owner of Feathers, said the trendy Pittsburgh, Pa., street where his store is located saw good traffic, but it didn’t quite compare to stronger regional malls. Still, the retailer saw people buying “better goods and merchandise that is exclusive and not available at the chain stores.” Stores in the Northeast also lost traffic due to the huge snow storm that hit. Classic Homes had its store closed for four and half days post Christmas. “Because of our location on the Jersey shore, our strongest months are actually in sum-

Warm Things, San Rafael, Calif.

mer,” noted owner Pearl Fitzgerald, who reported that sales for December were up about 11% compared to the previous year. Online sales also impacted the independents, which are in various stages of online growth — from getting their toes wet to running a thriving website. “The strength of the season really showed online,” reported Smith-Allen of Warm Things, which boasts an extensive website as well as a mail order catalog. At Bedside Manor Ltd. — a four-unit boutique in the Chicago area — results were mixed according to owner Meg Carroll. Two stores did very well, while the other two saw less traffic. However, there was no mistaking the internet results. “Our website was down for about two months this year as we updated it. Even with that, our internet sales are up about 30%. We stay on top of it,” said Carroll. Brass Bed of Denver has an informational site, but is looking to expand it. Fraiche on the Avenues lets shoppers look at its bridal registries online, but doesn’t have a fully operating e-commerce site yet. “It’s a project for 2011; we want to expand the site so people can shop the bridal registry and then we’ll work on it further,” said Blanchard. At Hestia Luxury Linens, start-up costs in designing and

Classic Home Inc., in Lake Como, N.J.

launching an e-commerce website are significant issues, but Mutter is working to develop an ecommerce site in 2011. “We currently have an informational site and it generates a lot of calls; so does our Facebook page. The website is the next step,” she said. Advertising and promotion to lure people to the stores varied significantly from retailer to retailer, as well for the season. Mulert of Feathers said he increased his advertising budget by about 20% for November and December, using direct mail, billboards and local magazines. “We actually did a little less advertising this year,” reported Smith-Allen of Warm Things. “We felt like we wasted money last year, so this year used our

mail order cat alog and we increased the number of percentage off coupons, which we gave people at check out for a next visit.” Fraiche on the Avenues was one of four stores on its street which sponsored a “Martini and Mistletoe” evening, giving visitors a free martini. The company has accumulated a good sized e-mail roster and also sent out promotional emails. According to Blanchard, digital marketing (the store is also on Facebook) worked better compared to nearby stores using traditional promotional postcards. Across the board, the mood was upbeat. “People are less afraid and more comfortable buying,” noted Smith-Allen of Warm Things. “It’s not a flood gate, but it’s steady.” HTT

1/7/2011 1:23:37 PM

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Home Textiles Today

> hometextilestoday.com

January 10, 2011

BUSINESS TodaY BBB Boasts Double-Digit Net Earnings and Sales, High Single-Digit Comp Gains in 3Q U NION , N.J. — With double-

digit gains in both net earnings and net sales plus a high singledigit comp increase, Bed Bath & Beyond’s third quarter proved “pleasing” – and yet not quite as good as it might have been in better economic times. Leonard Feinstein, co-chairman, noted during the home textiles specialty chain’s conference call that “while the economic environment appears to have stabilized and is perhaps improving, it looks as if the consumer continues to face challenges resulting from the macroeconomic environment, such as historically high unemployment rates. However, we are cautiously optimistic about the remainder of fiscal 2010.”

For the quarter, ended Nov. 27, BBB reported a 28% increase in net earnings to $188.6 million, or 74 cents per diluted share, versus the year ago period’s $151.3 million, or 58 cents per diluted share. Net sales were up 11.1% to $2.194 billion, compared to $1.975 billion in the 2009 third quarter. Comparable store sales increased by about 7.0%, slightly down from last year’s 7.3% gain. As of quarter-end, the retailer operates 1,127 stores, including: 976 Bed Bath & Beyonds in 50 states, the District of Columbia, Puerto Rico and Canada; 66 Christmas Tree Shops stores; 40 buybuy BABY units; and 45 stores under the names of Har-

mon or Harmon Face Values. In addition, the company is a partner in a joint venture which operates two stores in the Mexico City market under the name “Home & More.” Year-to-date results included: a 35% net earnings jump to $507.9 million, or $1.95 per diluted share, versus $374.0 million, or $1.44 per diluted share; net sales that grew 12.0% to $6.254 billion compared to $5.585 billion last year; and a 7.6% increase in comps. BBB updated its fourth quarter and fiscal 2010 guidance, now modeling net earnings per diluted share to be approximately $.91 to $.95 for the quarter and approximately $2.86 to $2.90 for the year. HTT

Online Holiday Spending Jumped 13% R ESTON , VA . — E-commerce

sales in the first 56 days of the November-December holiday shopping period rose 13% to $30.8 billion, with online sales for the week ended Dec. 26 up 17% to $2.45 billion, according to the comScore ratings agency.

The two strongest days were Thanksgiving (Nov. 25), with sales up 28% year-over-year to $318 million; and “Free Shipping Day” (Dec. 17), with sales up 61% to $586 million. “For at least this holiday season, the American consumer

has been able to shrug off the continuing economic challenges of high unemployment rates and depressed housing prices and spend at a rate that has been slightly stronger than we had expected,” said comScore chairman Gian Fulgoni. HTT

Same-store sales

December Comps Exceeded Expectations NEW YORK — The Christmas weekend blizzard

at some department stores, which tend to be may have knocked nationwide travel off course more promotional than discount stores this time but it didn’t derail shoppers, according to the of year,” said Catlin Levis, Redbook analyst. Redbook’s preliminary target for January is Johnson Redbook. Aggregate comps for December rose 3.6%, a 2.8% gain over January 2010, which would outpacing a projected 3.2% gain. During the mark a 0.5% decline from December. HTT final week of the month, Johnson Redbook Index comps were up a smart 4.7% Fifth week of December, year-over-year % change at department stores and WEEK ENDED 12/4 12/11 12/18 12/25 1/1 MONTH TARGET 2.8% at discounters. Department stores* 3.4 1.8 4.7 5.5 4.7 4.0 2.9 “Clearance sales of seasonDiscounters 4.0 3.2 3.2 4.0 2.8 3.4 3.4 al inventory were certainly a Redbook Index 3.8 2.5 3.8 4.6 3.5 3.6 3.2 factor in post Christmas buy*Including chain stores and traditional department stores ing. There were reports of sigSource: Johnson Redbook Index nificant upside performance

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Jo-Ann Stores Set to be Acquired by Affiliate of Leonard Green & Partners HUDSON, OHIO — Longtime fabrics and crafts retailer Jo-Ann Stores Inc. is set to be acquired by an affiliate of the private equity firm Leonard Green & Partners L.P. The retailer has entered into a definitive agreement for its purchase for a total price of about $1.6 billion, or $61.00 per share in cash. The offer price represents a 34% premium to the closing price of Jo-Ann’s shares on Dec. 22. “We are excited about the prospect of working with Leonard Green & Partners as we further capitalize on opportunities to accelerate the expansion and upgrade of our stores and pursue market share gains,” said Darrell Webb, chairman and ceo. “With the help of our talented and dedicated team, we will continue to offer our customers a superior shopping experience for all of their fabric and craft needs.” On the recommendation of a special committee comprised entirely of independent directors, Jo-Ann Stores’ board of directors approved the merger agreement by a unanimous vote of the nonemployee directors and recommends that the company’s shareholders adopt the agreement. Todd Purdy of Leonard Green & Partners, described Jo-Ann Stores as a “clear leader” among fabric and crafts retailers. “We are excited to partner with Jo-Ann Stores’ talented management team and look forward to the next phase of the company’s growth,” he said. If the acquisition is approved by holders of a majority of JoAnn Stores’ shares of common stock, the transaction is expected to close in the first half of calendar 2011. It is subject to customary closing conditions, including the receipt of regulatory approvals, but is not subject to any condition with regard to the financing of the transaction. In accordance with the merger agreement, the board of directors will

also be permitted to solicit alternative proposals through February 14, 2011, to ensure the transaction is the best available for its shareholders. J.P. Morgan, Bank of America Merrill Lynch and TCW/ Crescent Mezzanine have provided committed financing for the transaction. Jo-Ann Stores’ special committee lead director and chairman, Scott Cowen, said that “after a thorough assessment,” his committee and the retailer’s board concluded that the proposal put forth by Leonard Green & Partners “is the best way to maximize value for shareholders, who will receive a substantial and immediate cash premium for their shares. While the company was not actively seeking this transaction, once the offer was received and negotiated, the special committee determined that it was in the best interest of the company’s shareholders, as well as its employees and other partners.” Cowen also noted that Leonard Green & Partners has “significant expertise in the retail space” and is “dedicated to cultivating and supporting the growth of Jo-Ann’s business.” With more than $9 billion in equity capital under management, Los Angeles-based Leonard Green & Partners invests in companies across a range of industries, including retail with Whole Foods Market, PETCO Animal Supplies, Leslie’s Poolmart, Sports Authority, The Container Store, Tourneau, David’s Bridal, Neiman Marcus Group, Jetro Cash & Carry and Tire Rack. Jo-Ann Stores will file a preliminary proxy statement with the SEC which will contain detailed information about the transaction and the board and special committee process. Once the SEC completes its review of the preliminary proxy statement, Jo-Ann Stores will file the definitive proxy statement with the SEC and distribute it to shareholders. HTT

1/7/2011 1:35:29 PM

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Home Textiles Today

> hometextilestoday.com

January 10, 2011

Calendar January 12 – 15 Heimtextil Frankfurt Fair & Exhibition Center Franfurt am Main, Germany (770) 984-8016 heimtextil.messefrankfurt.com

12 – 19 Atlanta International Gift and Home Furnishings Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

13 – 16 The Atlanta International Area Rug Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

18 – 20 Texworld USA Jacob Javits Center, New York (770) 984-8016 www.texworldusa.com

18 – 23 imm cologne The Exhibition Center Cologne, Germany www.imm-cologne.com (773) 326-9920 or +49 221 821-0 www.imm-cologne.com

19 – 25

15 – 18 The Canadian Home Furnishings Market (TCHFM) The International Centre Mississauga, Ontario, Canada (514) 866-3631 www.tchfm.com

15 – 18

DOMOTEX Hannover Hannover Fairgrounds, Hannover, Germany (609) 987-1202 www.domotex.de

Dallas Holiday & Home Expo Dallas Market Center, Dallas (214) 655-6100 www.dmcfinds.com

19 – 25 Dallas Total Home & Gift Market Dallas Market Center, Dallas (214) 655-6100

www.dallasmarketcenter.com

21 – 24 F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas (214) 655-6100 www.dmcfinds.com

21 – 25 Maison & Object Parc des Expositions, Paris-Nord Villepinte, Paris, France (888) 522-5001 www.maison-objet.com

23 – 26 Interiors Birmingham The National Exhibition Centre (NEC), Birmingham, UK +44 (0) 20 7921 8408 www.interiorsbirmingham.com

24 – 28 Las Vegas Market World Market Center, Las Vegas (702) 599-9621 www.lasvegasmarket.com

Mandalay Bay Convention Center Las Vegas (866) 860-1975, www.surfaces.com

2 —4

New York Home Textiles Market Week At the New York International Gift Fair, Jan. 29 - Feb. 3 At 230 Fifth Avenue, Jan. 30 - Feb. 4 At 7 W New York, Jan. 28 - Feb. 3 (800) 272-7469 www.nyhometextilesmarketweek.com

Tex Trends India Pragati Maidan New Delhi, India +91-124-2708082 textrendsindia2011.com

29– February 3 New York International Gift Fair Jacob K. Javits Convention Center, Passenger Ship Terminal Piers, New York (800) 272-7469 www.nyigf.com

30 – February 3 CGTA Gift Show Toronto International Centre; Toronto Congress Centre, Toronto, Canada (416) 679-0170 www.cgta.org/Assoc/Home.aspx

Intirio Flanders Expo, Gent, Belgium

Surfaces

February

29 – February 3

30 – February 2 25 – 27

+32 09/24 38 450 www.intirio.be

6 – 10 Spring Fair The National Exhibition Centre (NEC), Birmingham, UK (609) 921-0222 www.springfair.com

7 – 10 Texworld Paris Le Bourget Exhibition Centre, Paris, France +33 155 268 989 www.texworld.messefrankfurt.com

8 – 10 Expofil Parc des Expositions, Paris-Nord Villepinte, France +33 (0) 4 72 60 65 00 www.expofil.com

CLASSIFIEDS CLOSEOUTS

NOTICES

CLOSEOUTS WANTED --BOUGHT AND SOLD-Seeking Unlimited Quantities on Firsts, Irregulars and Overstocks HOME FASHIONS DISTRIBUTOR INC Mike O’Neil 207-646-1949 Email: mike@homefashionsinc.com SO MANY DIFFERENT WAYS

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s classiﬁed Lines Offered (Reps) Help Wanted Retail Recruitment Real Estate Showroom Space

For Sale/Lease Factoring Services Announcements Legal Notices Parts

WANTED TO BUY WANTED – Business For Sale Investor group is looking to purchase a business in the Home Furnishings Industry. Hands-on management has cash, infrastructure and distribution facility. Does not need to be proﬁtable. Contact: Textileman@ymail.com

LINES OFFERED WANTED - WELL KNOWN, ESTABLISHED MANUFACTURER OF BASIC NATURAL & SYNTHETIC FILLED BEDDING, IS LOOKING FOR A SELECTED FEW SALES REPRESENTATIVES THAT HAVE EXTENSIVE EXPERIENCE & SUCCESS IN SELLING MAJOR RETAILERS. PLEASE SEND RESUMES TO: NINGBLUERIDGE@AOL.COM

HELP WANTED Product Development Manager / Sr. Stylist Major New Jersey importer with joint venture with Chinese factories seeks “PDM”/Sr. Stylist for Decorative Pillows & Pet Beds. Responsible for market research, styling, int’l sourcing and taking product from concept to line. F/T or P/T position or consulting. Email: opportunitynj@aol.com Director of R&D for Home Bedding Products – San Francisco Area Hands-on position responsible for all detailed R&D work including: research new technologies & product designs worldwide, collect ideas from clients & sales team on what unmet needs exist in marketplace, create new product/performance designs that add value & conduct tests on products with new technologies to prove efficacy. Interested & qualified applicants, forward your resume and salary history to: hr@standardfiber.com

ADVERTISE

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1/7/2011 3:35:37 PM

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