Leath Furniture future uncertain
April 1st, 2007 Category FurnitureGALESBURG - Business appeared to be operating as usual Friday morning at Leath Furniture, 456 E. Main St., despite rumors the chain is going out of business.
The rumors began to spread when Furniture Today, the weekly trade publication of the furniture industry, reported March 23 Leath Furniture planned to begin running “high-impact” sales at its Midwest stores “in what could be the beginning of the end for the Top 100 company.”
Leath has 19 stores in five Midwestern states, including Peoria, Pekin, Peru and Normal, in addition to Galesburg.
The furniture weekly reported sources familiar with the plan said Leath’s owners were beginning to dismantle the corporate office in Atlanta, Ga., letting go more than half of its 30 employees.
“Key vendors have stopped shipping and CEO and investor Ron Phillips is resigning, but is expected to help out on a consulting basis,” according to Furniture Today.
A fax from a real estate firm representing Leath Furniture was received locally that advertises 19 “prime retail locations” available for sub-lease, including 454-458 E. Main St., Galesburg. The store is listed as having 37,500 square feet, with the lease expiration date and options listed as “negotiable.”
Tamara Trainor of Feinblum Realty in the state of New York confirmed Friday the information was legitimate.
Local store manager Stan Farmer has declined to comment on the rumors.
A call Friday afternoon to Leath’s corporate customer service number did not allow a voice-mail message to be left. A recording said, “That mailbox is full.”
Reports have been all over the map.
WMBD/WYZZ-TV, Peoria-Bloomington, reported a sales executive of a Leath store in central Illinois confirmed the entire chain is shutting down.
“They’ve done very well, and yes, they’ll be missed,” Steve Brown, Pekin’s economic development coordinator told WMBD and WYZZ.
However, the Peoria Journal Star reported that an employee at the Peoria store, 8115 N. Knoxville Ave., who declined to give her name, said, “We have not been notified as to what is going on.”
Other employees at the Pekin store said much the same.
“We hadn’t heard anything about it,” another Leath employee who requested anonymity told the Journal Star. “As far as we know it’s just a rumor. We’re not sure what’s going on.”
Helen Godfrey, manager of Leath’s in Peoria, said she’s received a number of phone calls asking about the store’s future.
“But I do not have any information,” she said Wednesday. “I’m digging into it to see what’s going on.”
She was not available Friday.
The company has had a number of different owners in recent months. SB Capital Group went together with Leath management in July 2006 to buy the chain from Mack Robinson. CEO Phillips declined to comment to Furniture Today, referring all questions to executives with liquidator Planned Furniture Promotions, Enfield, Conn., and CB Capital Group.
A spokesman for Planned Furniture who declined to be identified would neither confirm nor deny the rumors.
“Right now, I’m not in a position to comment on that at this time,” the spokesman said. “But our PR department will be issuing a statement in the near future … in a week or two.”
Information from: www.register-mail.com
