Under FBI's Ownership, Drexel Heritage Remains Style Leader
August 6, 2002
Merchandising Manager Blackman ''Excited'' by Chenilles; Eyes Chinese Sources
Drexel, N.C. (USA) - The nearly century-old firm, Drexel Heritage Furnishings, is under new ownership and leadership. In December, Furniture Brands International, the multi-million dollar furniture and upholstery firm, signed a definitive agreement with LifeStyle Furnishings for assets of several firms, including Drexel Heritage Furnishings.
Despite Drexel''s new ownership and leadership, (under recently appointed CEO Jeff Grow) the company is not expected to change drastically. Drexel has survived and thrived for almost a century by offering comfort, value and quality.
''It''s about creating an extremely exciting value story in our upholstery offerings by pairing fabrics at strong price points with wonderful, high-interest frames,'' said Susan Blackman, director of fabric merchandising. Blackman joined Drexel in 1994 as director of showroom design.
''We also continue to work hard at marrying our upholstery and case goods introductions in a way that provides maximum merchandising opportunities for our retail partners.'' Determining designs and styles seasonally involves a needs assessment strategy. ''First I look at historical ROS information on fabrics currently within the line,'' said Blackman. ''If a particular fabric color or construction works, we strengthen it with additional ones. Then I consider any voids we may have in the line. And third is the aesthetic interpretation, which I believe sets us apart from our competitors.''
What has also set Drexel apart is the fact that it has regularly used freelance designers for the bulk of its frame designs. ''We typically use three reliably. They all know the industry, they know Drexel, and they each have a signature flair.''
After the frames are designed, the company places fabric orders. Blackman attends the Showtime Textile market in High Point, N.C., in January and July annually to help her make decisions about fabric. ''In High Point, you get an intense dose of fabric opportunities,'' she said.
Prior to Showtime, Blackman typically works with 10 key mills. (She works with as many as 50 during their product development cycles.) ''We keep the dialogue going continuously,'' she said. ''We partner with mills that meet certain criteria, such as style, leadership and service, not just aesthetics. They need to perform consistently.''
Blackman, who has a degree in interior design, orders primarily from domestic mills including Quaker, Valdese, Mastercraft, Craftex, Circa 1890, and American Silk.
Blackman said she''s been buying mostly wovens. ''I''m just not blown away by many prints out there right now,'' she said. ''But I''m excited by the extremely drapeable chenilles which have an almost apparel weight to them ... very soft. The most compelling first impression of a fabric is the look and color. So that is what drives the initial interest. Then, of course, the feel, the hand, the construction and then cost factors in.''
Drexel inventories 900 to 1,000 fabric samples in its line. Less than 10 percent of those offerings are exclusive fabrics. Leather, according to Blackman, is a relatively small percent of what Drexel offers. Only around 60 different leathers are regularly offered.
With the upscale Lillian August line for Drexel Heritage, Blackman leaves the design and fabric selection to August and her son, Michael Weiss, a designer. Another 300 fabrics are offered in this line.
Blackman said exposed wood frames, exceptional fabrics and intricate details characterize Drexel''s look. ''These are trademarks that make a successful template for what we''re about.''
Blackman does business with some European mills for their velvet construction, including Belgian mills Cositex and Bruvatex.
Blackman said she''s open to sourcing from China. ''At Showtime, we''re seeing more imports from Asian sources. There is quality and quantity coming out of China. Many are not equipped to do some constructions, and you have to work closely with these mills concerning color and pattern issues, but we''re very encouraged.''
Much of Blackman''s merchandising inspiration comes from ''sheer paying attention to what is going on in the world.'' Last summer she spent two weeks in Italy studying Venetian and Florentine designs. ''Certainly other fashion industries play a part, but how people live influences what they are purchasing for their homes.''
Drexel Heritage has historically targeted an older, affluent customer. Of late, however, it is targeting younger customers as well. ''We clearly won''t abandon what has been successful, but there is a huge volume opportunity to address with a younger mind-set of say late 20s to 40s,'' said Blackman.
''We have to continue to be ahead of the game in regard to excellence. The challenge lies in the ever-changing barometer of value and price. Prices due to imports continue to become more aggressive. Our response to this need for value requires us to raise the bar each market on how well we do our job.'' F&FI
FBI''s Acquisitions From LFI
The agreement between Furniture Brands International and LifeStyle Furnishings International included assets of Henredon Furniture Industries and Maitland-Smith as well as Drexel Heritage. The purchase price totaled $275 million in cash and common stock.
''With Broyhill, Lane, and Thomasville, Furniture Brands already has a strong position in the middle and upper-middle price points of residential furniture,'' said Furniture Brands International chairman, president and CEO W.G. Holliman. ''The acquisition of Henredon, Drexel Heritage, and Maitland-Smith will give us an industry-leading presence in the premium category as well, and will establish us as the furniture industry''s only full-line, whole home resource in all middle and upper price categories.
Holliman said these companies would add approximately $425 million to its 2002 revenues, and over $35 million in operating expenses. ''Our financial condition will remain strong after the acquisition,'' he said.
In April, Holliman appointed Young as president and CEO of Drexel Heritage. Young replaces Daniel M. Grow who served as Drexel''s leader since 1993.
Young has a long history in the furniture industry. He began his career in 1972 in an executive training program with Lexington Furniture Industries. He was name chief operating officer of Lexington in 1990 and served as president and chief executive officer from 1993 to 1999. Before accepting the appointment with Drexel, Young consulted for the home furnishings industry.
''Jeff Young is one of the most well-respected managers in the furniture industry, and we are pleased he has agreed to undertake this new role. He has years of experience and success in our industry and will bring a wealth of new ideas to Drexel Heritage.'' F&FI
Drexel, N.C. (USA) - The nearly century-old firm, Drexel Heritage Furnishings, is under new ownership and leadership. In December, Furniture Brands International, the multi-million dollar furniture and upholstery firm, signed a definitive agreement with LifeStyle Furnishings for assets of several firms, including Drexel Heritage Furnishings.
Despite Drexel''s new ownership and leadership, (under recently appointed CEO Jeff Grow) the company is not expected to change drastically. Drexel has survived and thrived for almost a century by offering comfort, value and quality.
''It''s about creating an extremely exciting value story in our upholstery offerings by pairing fabrics at strong price points with wonderful, high-interest frames,'' said Susan Blackman, director of fabric merchandising. Blackman joined Drexel in 1994 as director of showroom design.
''We also continue to work hard at marrying our upholstery and case goods introductions in a way that provides maximum merchandising opportunities for our retail partners.'' Determining designs and styles seasonally involves a needs assessment strategy. ''First I look at historical ROS information on fabrics currently within the line,'' said Blackman. ''If a particular fabric color or construction works, we strengthen it with additional ones. Then I consider any voids we may have in the line. And third is the aesthetic interpretation, which I believe sets us apart from our competitors.''
What has also set Drexel apart is the fact that it has regularly used freelance designers for the bulk of its frame designs. ''We typically use three reliably. They all know the industry, they know Drexel, and they each have a signature flair.''
After the frames are designed, the company places fabric orders. Blackman attends the Showtime Textile market in High Point, N.C., in January and July annually to help her make decisions about fabric. ''In High Point, you get an intense dose of fabric opportunities,'' she said.
Prior to Showtime, Blackman typically works with 10 key mills. (She works with as many as 50 during their product development cycles.) ''We keep the dialogue going continuously,'' she said. ''We partner with mills that meet certain criteria, such as style, leadership and service, not just aesthetics. They need to perform consistently.''
Blackman, who has a degree in interior design, orders primarily from domestic mills including Quaker, Valdese, Mastercraft, Craftex, Circa 1890, and American Silk.
Blackman said she''s been buying mostly wovens. ''I''m just not blown away by many prints out there right now,'' she said. ''But I''m excited by the extremely drapeable chenilles which have an almost apparel weight to them ... very soft. The most compelling first impression of a fabric is the look and color. So that is what drives the initial interest. Then, of course, the feel, the hand, the construction and then cost factors in.''
Drexel inventories 900 to 1,000 fabric samples in its line. Less than 10 percent of those offerings are exclusive fabrics. Leather, according to Blackman, is a relatively small percent of what Drexel offers. Only around 60 different leathers are regularly offered.
With the upscale Lillian August line for Drexel Heritage, Blackman leaves the design and fabric selection to August and her son, Michael Weiss, a designer. Another 300 fabrics are offered in this line.
Blackman said exposed wood frames, exceptional fabrics and intricate details characterize Drexel''s look. ''These are trademarks that make a successful template for what we''re about.''
Blackman does business with some European mills for their velvet construction, including Belgian mills Cositex and Bruvatex.
Blackman said she''s open to sourcing from China. ''At Showtime, we''re seeing more imports from Asian sources. There is quality and quantity coming out of China. Many are not equipped to do some constructions, and you have to work closely with these mills concerning color and pattern issues, but we''re very encouraged.''
Much of Blackman''s merchandising inspiration comes from ''sheer paying attention to what is going on in the world.'' Last summer she spent two weeks in Italy studying Venetian and Florentine designs. ''Certainly other fashion industries play a part, but how people live influences what they are purchasing for their homes.''
Drexel Heritage has historically targeted an older, affluent customer. Of late, however, it is targeting younger customers as well. ''We clearly won''t abandon what has been successful, but there is a huge volume opportunity to address with a younger mind-set of say late 20s to 40s,'' said Blackman.
''We have to continue to be ahead of the game in regard to excellence. The challenge lies in the ever-changing barometer of value and price. Prices due to imports continue to become more aggressive. Our response to this need for value requires us to raise the bar each market on how well we do our job.'' F&FI
FBI''s Acquisitions From LFI
The agreement between Furniture Brands International and LifeStyle Furnishings International included assets of Henredon Furniture Industries and Maitland-Smith as well as Drexel Heritage. The purchase price totaled $275 million in cash and common stock.
''With Broyhill, Lane, and Thomasville, Furniture Brands already has a strong position in the middle and upper-middle price points of residential furniture,'' said Furniture Brands International chairman, president and CEO W.G. Holliman. ''The acquisition of Henredon, Drexel Heritage, and Maitland-Smith will give us an industry-leading presence in the premium category as well, and will establish us as the furniture industry''s only full-line, whole home resource in all middle and upper price categories.
Holliman said these companies would add approximately $425 million to its 2002 revenues, and over $35 million in operating expenses. ''Our financial condition will remain strong after the acquisition,'' he said.
In April, Holliman appointed Young as president and CEO of Drexel Heritage. Young replaces Daniel M. Grow who served as Drexel''s leader since 1993.
Young has a long history in the furniture industry. He began his career in 1972 in an executive training program with Lexington Furniture Industries. He was name chief operating officer of Lexington in 1990 and served as president and chief executive officer from 1993 to 1999. Before accepting the appointment with Drexel, Young consulted for the home furnishings industry.
''Jeff Young is one of the most well-respected managers in the furniture industry, and we are pleased he has agreed to undertake this new role. He has years of experience and success in our industry and will bring a wealth of new ideas to Drexel Heritage.'' F&FI