Pulaski sells Ridgeway

Howard Miller's lineup grows

By Jeff Linville -- Furniture Today, November 14, 2004

Pulaski, Va. — And then there were two.

Pulaski Furniture has sold the rights to the Ridgeway name and facilities to Howard Miller for an undisclosed amount, a move that reduces the number of U.S. floor clock manufacturers to two — Howard Miller and Sligh Furniture. Howard Miller said it will keep the plant in Ridgeway, Va., open.

By selling the clock line, Pulaski Furniture said the company is narrowing its focus to case goods and occasional furniture and is reinvesting the funds from the sale. While Pulaski is nearly a half-century old, it has only made floor clocks for the past 19 years, since it purchased Ridgeway Clocks from Gravely Furniture Co.

In 2000, Pulaski had estimated U.S. furniture shipments of $226 million, according to Furniture/Today research. But the economy softened and import competition hit the company hard, and sales steadily dropped to about $160 million in 2003 — nearly 30% less than in 2000.

But the company believes it has righted the ship by turning to overseas sourcing for most of its new goods and marketing two licensed lines that are proving successful.

"This is a strategic move for the direction of our company," said Larry Webb Jr., Pulaski president and CEO. With the Ridgeway sale, he said, the company will focus on bedroom, dining room, curios and occasional.

"We can invest more resources in our branded collections, such as The Antiques Roadshow collection and the newly launched Casa Cristina collection," Webb said. He said the latter, licensed with Hispanic TV star Cristina Saralegui, "was our best new product launch in several years."

John Oakley, senior vice president, chief financial officer and treasurer, said the company is "in a strong financial position. With the additional resources from the sale, we can pursue even more branding opportunities."

F/T estimates that Pulaski's 2003 sales placed it just outside the Top 25 Furniture Sources ranking. Pulaski and Howard Miller are privately owned and didn't disclose Ridgeway's clock sales, but Webb said Pulaski would still be a top-30 company.

Pulaski made some of its curios at the Ridgeway plant and is shifting that production to its other facilities in Pulaski, which may create more jobs over time, Webb said.

For Howard Miller, this is the second acquisition this year. Earlier, the company purchased Germany-based Kieninger, which makes the movements that run the clocks.

"Ridgeway has an excellent brand and identity," said Philip Miller, chairman and CEO. "We purchased it as an investment, and it will be run completely separately from Howard Miller."

Miller said he believes Ridgeway will be most effective under its own management and sales force. It's the same way Howard Miller operates two other subsidiaries: Case goods maker Hekman Furniture, purchased in 1983, and upholstery producer Woodmark, bought in 1994.

While Ridgeway will be independent, Miller said he could see where it could benefit from synergies in purchasing and research and development involving other Howard Miller companies.

Paul Hoffman, the Ridgeway plant's general manager for Pulaski, will transfer with the facility, as will his workforce. Miller traveled to Ridgeway, Va., to visit the plant Nov. 5 and assuage any fears of layoffs. He said Hoffman, a clock industry veteran who worked for Howard Miller and Seth Thomas before joining Pulaski, will be in charge of both operations and sales.

Miller said the newly named Ridgeway Furniture Co. will have its own distribution center, which likely will remain at the current location in Madison, N.C.

While Pulaski had been making some curios in Ridgeway and Howard Miller also sells curios, Miller said his staff hasn't studied that possibility yet.