When the international natural stone industry meets in Nürnberg from 20-23 May, the exhibition centre will again be geared to stone and all its varieties. Stone+tec, which attracted some 1, 000 exhibitors and more than 40, 000 trade visitors at the last event, has constantly proved its importance as one of the major international exhibitions for natural stone and stone processing over a period of thirty years.

Despite all the prophecies of doom, no other European country has such a big demand for natural stone products as Germany. Even at times of worldwide financial and real estate crises, the Federal Republic can still be proud of its position by international comparison. With its sound economic basis and good relations and close proximity particularly with its neighbours in Central Eastern Europe, Germany offers an ideal marketplace for successful business. In the recently published edition of his comprehensive annual market analysis “Stone 2008 – World Marketing Handbook”, industry insider Dr. Carlo Montani emphasizes the growth rates of the worldwide natural stone trade. Although development varies in different countries and regions, the German market convinces through its high stability. Against this backdrop, Stone+tec in Nürnberg has succeeded in establishing itself as information pool for decision-makers from East and West in the three decades of its history. Its convenient geographical location has made it a major source of inspiration and popular get-together for the entire natural stone market.

More contacts – more information
The exhibitors at the last Stone+tec in 2007 welcomed visitors to their stands from all relevant fields of natural stone. 93 % of the exhibitors said they had reached their major target groups by exhibiting in Nürnberg:
79 % registered potential customers from natural stone contractors, 67 % from the trade, 56 % from stonemasonry firms, 43 % architects, 32 % from the gravestone business, 32 % from landscape contractors, 29 % tilers,
20 % from general building contractors, 19 % from official agencies,
16 % restorers and preservers of historic buildings, and 13 % from building material manufacturers.

Some one-third of the more than 40, 000 trade visitors in 2007 came from 76 countries outside Germany, but clearly focused on Europe. For around half of the visitors, Stone+tec is the only natural stone exhibition they visit. This combined with the fact that nine out of ten visitors are involved in procurement decisions in their companies makes Stone+tec an excellent business platform every two years: more than 90 per cent of the companies involved made new business connections in 2007.

The visitors were mainly interested in natural stone as a material for interior, facade and exterior use, plus tools, machinery and installations. About half the visitors stated these product segments as their reason for visiting the exhibition. There was also a strong demand for natural stone for gravestones, sacral use and monuments, and for grave design and decoration: more than a quarter of the visitors come to Nürnberg for this reason and Stone+tec does special justice to this interest with a separate hall for this segment.

Stone+tec not only offers a comprehensive range of products from the exhibitors, but also a supporting programme and special theme presentations for information and inspiration. The programme includes classics like the Natural Stone Architects Forum with the presentation of the German Natural Stone Award and the Peter Parler Award for outstanding achievements in the preservation of historic buildings in Europe, plus the 2009 Federal Congress of the German Stonemasonry, Stone and Wood Sculpturing Crafts with its special craft shows.

Two still rather new items from the supporting programme that attracted an excellent response from the audience from the start will also be continued in 2009: the seminar on professional laying of natural stone tiles and the special show “Natural Stone Architecture – Made in Germany”. The programme for 2009 will be enhanced by another highlight, which is still in the planning stage. But so much can be revealed: it concerns high-quality design and up-to-date forms of remembering the dead, which could provide a contrast to the trend towards anonymous burials.

With the range of products and services offered by the exhibitors and its supporting programme, Stone+tec 2009 will again provide inspiration for an industry concerned with a material that is literally as old as the hills – a material that is never outdated, but always topical, modern and fresh.

Products on display at Stone+tec 2009

Natural stone
- Natural stone for interior use, facades and exterior use; all types of stone and processing
- Fixing, maintenance, preservation and restoration of natural stone
- Industrial safety and environmental protection
- Services, trade press, associations

Technology
- Machines, installations and tools
- for quarrying natural stone
- for processing natural stone
- for moving and installing natural stone
- for manufacturing diamond tools
- Conveying, transport, packaging

Gravestones and accessories
- Natural stone for graveyards
- Grave design and decoration

Bassett Furniture Industries Inc. announced today its results of operations for its fiscal quarter and 40 week period ended August 30, 2008.

Sales for the quarter ended August 30, 2008 were $70.2 million as compared to $70.5 million for the quarter ended August 25, 2007. The 2008 and 2007 reported sales were increased by reported revenue of $4.0 million and $1.0 million, respectively, due to a change in the Company’s business practices with respect to freight for the delivery of wholesale furniture to its retail stores. In July of 2007, the Company began invoicing these customers on a fully landed basis such that the invoice price includes freight. Excluding the effects of the business change, sales would have been $66.2 million for the quarter ended August 30, 2008 as compared to $69.5 million for the quarter ended August 25, 2007, a 5% decrease due primarily to a further softening in the overall retail environment late in the third quarter (see also discussion in the Wholesale and Retail Segments below).

Gross margins for the third quarter of 2008 and 2007 were 40.0% and 35.0%, respectively. Excluding the effects of the above-mentioned business change, the gross margin for 2008 and 2007 would have been 36.4% and 34.0%, respectively. This increase over 2007 results from improved margins in both the wholesale and retail segments. Selling, general and administrative expenses, which exclude the effects of the above-mentioned business change, increased $2.2 million for the third quarter of 2008 as compared to 2007 primarily due to a $3.2 million increase in the provision for bad debts related to the impact that the prolonged weak retail environment is having on certain of the Company’s dealers. The Company reported a net loss of $(2.7) million, or $(0.23) per share for the quarter ended August 30, 2008, as compared to net income of $0.7 million, or $0.06 per share, for the quarter ended August 25, 2007.

Sales for the 40 weeks ended August 30, 2008 were $226.6 million as compared to $219.3 million for the 39 weeks ended August 25, 2007, an increase of 3%. The 2008 and 2007 reported sales were increased by reported revenue of $12.7 million and $1.0 million, respectively, due to the change in the Company’s business practices as described above. In addition, fiscal 2008 included an additional week of sales due to the Company’s fiscal calendar. Gross margins for the 40 weeks ended August 30, 2008 and 39 weeks ended August 25, 2007 were 39.8% and 32.3%, respectively. Excluding the effects of the above-mentioned business change, the gross margin for 2008 and 2007 would have been 36.2% and 32.0%, respectively. This significant increase over 2007 results from improved margins in both the wholesale and retail segments. Selling, general and administrative expenses increased $4.9 million for the nine months of 2008 as compared to 2007 primarily due to the increase in the provision for bad debts as described above. The Company reported a net loss of $(2.5) million or $(0.22) per share for the 40 weeks ended August 30, 2008, as compared to a net loss of $(5.9) million, or $(0.50) per share, for the 39 weeks ended August 25, 2007.

The Bassett Furniture retail store program had 120 stores in operation as of August 30, 2008. For the first nine months of 2008, three new stores were opened (two licensee- and one corporate-owned) and 13 stores were closed (10 licensee and three corporate-owned). Although management will continue to work closely with its licensee stores to ensure the success of both the licensee and Bassett, the Company expects that three to five additional underperforming stores will close during the remainder of 2008.

“Despite our overall disappointing results, we believe that progress was made in key areas of our operations,” said Robert H. Spilman, Bassett’s president and chief executive officer. “We continue to show improved gross margins in both the wholesale and retail divisions over 2007 and our new product introductions have been well-received. We also have been successful in reducing our overall cost structure through targeted spending reductions. We remain encouraged by the sales results from our new retail store prototype despite the ongoing difficult home furnishings environment. Sales per square foot in the new format continue to meet our expectations and to noticeably outperform our existing fleet average.

“Given the difficult and somewhat unprecedented environment, we have had no choice but to take several important actions aimed at improving our results in the short-term. These include:

* Aggressively working with certain licensees to close those
stores that are underperforming thereby limiting further
exposure in our accounts receivable.
* Reducing our inventory levels to improve working capital
and cash flow.
* Right-sizing our expense structure in both our wholesale
and corporate retail divisions.

“Although we have these short-term actions in place, we will continue to think and act in the best long-term interests of our shareholders. We will continue to thoughtfully invest in store prototype conversions and remodels and work diligently with our licensed network to improve their operating results. With the improvements in our retail program and our strong balance sheet, we are well positioned to not only survive these turbulent times, but also to gain market share as some of our competitors exit the industry.”

The results for the 40 weeks ended August 30, 2008 included four unusual pretax items consisting of $1.4 million of legal and other expenses for the proxy contest with Costa Brava Partnership III L.P., a $1.3 million gain associated with the sale of the Company’s airplane, a $0.6 million loss on the exit of a corporate retail store lease recorded in the third quarter and a $0.6 million impairment charge associated with the writeoff of leasehold improvements for a closed store, of which $0.2 million was recorded in the third quarter. The loss for the 39 weeks ended August 25, 2007 included unusual pretax charges of $3.6 million for the writedown of the plant and equipment for the closing of the Bassett plant, $1.9 million associated with lease exit costs for certain closed stores, $1.0 million associated with the writeoff of tenant improvements from the downsizing of the Company’s showroom space and $0.9 million associated with severance from the closure of the Bassett plant. Please refer to the attached schedule which summarizes these unusual items.

Excluding these unusual items, the net loss for the quarter and 40 weeks ended August 30, 2008 would have been $(2.1) million and $(1.7) million, respectively, and the net loss for the 39 weeks ended August 25, 2007 would have been $(1.4) million. Please refer to the attached schedule which reconciles net income (loss) as reported to net income (loss) as adjusted.

Wholesale Segment

Net sales for the wholesale segment were $59.5 million for the third quarter of 2008 as compared to $58.5 million for the third quarter of 2007, an increase of 2%. The 2008 and 2007 reported sales were increased by reported revenue of $4.0 million and $1.0 million, respectively, due to a change in the Company’s business practices as described above. Excluding the effects of the business change, sales would have been $55.5 million for the quarter ended August 30, 2008 as compared to $57.5 million for the quarter ended August 25, 2007, a 3% decrease. Approximately 53% of wholesale shipments during the third quarter of 2008 were imported products compared to 51% for the third quarter of 2007. Gross margins for the wholesale segment were 29.7% for the third quarter of 2008 as compared to 24.4% for the third quarter of 2007. Excluding the effects of the invoicing change described above, gross margins for the third quarter of 2008 and 2007 would have been 24.7% and 23.1%, respectively, a 1.6 percentage point increase. This increase is primarily due to an improved product mix associated with increased imported products which carry a higher margin and the absence of certain wind down costs incurred in 2007 related to the closing of the Bassett plant. The Company recorded $4.1 million of bad debt expense, which was $3.2 million more than in 2007. Certain of the Company’s licensee-owned stores continue to be impacted by the deteriorating retail environment and strained credit markets coupled with lower consumer confidence. The increased bad debt expense was partially offset by reduced spending in other SG&A areas.

Net sales for the wholesale segment were $190.8 million for the 40 weeks ended August 30, 2008 as compared to $184.2 million for the 39 weeks ended August 25, 2007, an increase of 4%. The 2008 and 2007 reported sales were increased by reported revenue of $12.7 million and $1.0 million, respectively, due to a change in the Company’s business practices as described above. Gross margins for the wholesale segment were 29.7% for the 40 weeks ended August 30, 2008 as compared to 22.9% for the 39 weeks ended August 25, 2007. Excluding the effects of the business change described above, gross margins for the nine months of 2008 and 2007 would have been 24.8% and 22.5%, respectively, a 2.3 percentage point increase. This increase is primarily due to the improved product mix as described above. The Company recorded $6.1 million of bad debt expense for fiscal 2008, which was $3.9 million more than in 2007.

Retail Segment

The third quarter featured an unusual amount of activity in Bassett’s 29 corporate stores, as one store was permanently closed, two stores were temporarily closed for conversion to the new store prototype, and three stores were remodeled. Nevertheless, retail sales increased to $24.0 million in the third quarter of 2008 as compared to $22.2 million in the third quarter of 2007. These sales increases have primarily resulted from the additional Company-owned stores acquired during 2007 and an increase in comparable store sales. The comparable store sales increases were primarily driven by progress in the Dallas market, the benefits of store consolidation in upstate New York, and increased sales in its Pineville, N.C., store due to its conversion to the new store prototype. Gross margins for the quarter decreased 2.3 percentage points due primarily to lower margins in the Houston and Atlanta markets, resulting from the temporary closure of two stores for conversion to the new store prototype concept as these stores ran inventory liquidation events. Even with the lower gross margins and an overall difficult retail environment, the retail segment slightly reduced its operating loss over the prior year period. For its 24 comparable corporate stores, the Company reduced its operating losses by approximately 20% in the third quarter of 2008 as compared to the third quarter of 2007. The Company believes that the combination of new product introductions, store prototype retrofits, better hiring and training of design consultants and continued improved marketing efforts will lead to further improvement in retail operating results.

Net sales for the 40 weeks ended August 30, 2008 were $74.5 million as compared to $65.3 million for the 39 weeks ended August 25, 2007. These sales increases have primarily resulted from the additional Company-owned stores acquired during 2007 and increases in comparable store sales. Gross margins for the 2008 period increased 1.5 percentage points due to improved pricing and promotional strategies. The Company’s retail segment reduced its total operating losses by $0.8 million, a 10% decrease. For its 22 comparable corporate stores, the Company reduced its operating losses by approximately 35% in the 40 weeks ended August 30, 2008 as compared to the 39 weeks ended August 25, 2007.

Other, net

Other, net for the quarter and 40 week period ended August 30, 2008 was $(0.7) million and $(0.5) million as compared to $0.8 million and $4.5 million for the quarter and 39 week period ended August 25, 2007, respectively. These decreases were primarily related to the performance of the Company’s Alternative Asset Fund, as the Company recognized market losses of $(0.6) million and $(1.0) million for the quarter and nine months ended August 30, 2008 as compared to market gains of $0.1 million and $2.9 million for the quarter and nine months ended August 25, 2007. As of August 30, 2008, the fair value of the Company’s investment in the Alternative Asset Fund was $29.0 million, which is included in investments in the consolidated balance sheet.

Balance Sheet and Cash Flow

The Company used $12.7 million of cash in operating activities during the 40 weeks ended August 30, 2008 primarily due to the continued difficult environment at retail as well as payments to fund the inventory build at the end of 2007 for the January 2008 new product rollout. Representing one of the most extensive redesigns and rollouts in the Company’s recent history, the new product has been well-received at retail and has helped fuel sales. Due to the lead time to source the majority of the new product, inventory and accounts payable balances were unusually high at the end of fiscal 2007. Management expects inventory levels to slightly increase over the remainder of the year as the Company prepares for additional product introductions in January 2009. These introductions will not be as extensive as the 2008 rollout. The Company’s accounts payable balance was reduced by $7.8 million during the 40 week period and has returned to a more normalized level. The Company also funded $16.1 million in dividends, including an $8.7 million special dividend in August as discussed below, and repurchased $3.6 million of common stock under the previously announced $20 million share repurchase plan. These cash requirements were primarily funded through $27.6 million of net investment sales and $2.0 million in additional borrowings on the revolving credit facility.

Net accounts receivable increased $2.4 million during the 40 week period ended August 30, 2008, due primarily to the slower pace of collections from certain store licensees related primarily to the overall retail environment. The Company continually assesses its levels of bad debt reserves and recorded $6.1 million in provision for losses on accounts receivable in 2008 with $4.1 million of that recorded in the third quarter. A continuing difficult and weak retail environment could result in further bad debt expenses, reduced revenue and other store real estate charges.

Special Dividend and Status of Investment Redemptions

During the quarter ended August 30, 2008, the Company announced that its Board of Directors had approved the first installment of $0.75 per share to be paid as part of the $1.25 special dividend announced in April. Accordingly, $8.7 million was paid out in August. To fund this special dividend, the Company received $12.6 million during the quarter from the full liquidation of a position in the Alternative Asset Fund and $3.6 million from the partial liquidation of a position, with excess funds primarily being used for additional repurchases of common stock under the Company’s share repurchase plan and to reduce outstanding debt.

A growing number of interior decorators and contractors use baths, home spas and design-led kitchens by some of the world’s top designers, to make their top-end housing
construction stand out from the competition, and to add value to their developments.

The latest trends in bathroom fixtures, steam showers, whirlpools to complete luxury and fantasy bathrooms, home spas, contemporary and classic kitchen designs will be showcased at the ISH Kitchen and Bath Middle East to be held from May 25 to 27, 2008 at the Dubai International Convention and Exhibition Centre.

“From properties with spectacular views of the sea, golf course or the lagoons, the focus in the highly competitive residential construction market of the Middle East has now shifted to high-end interior designs. More and more top-end housing projects are crafting bathrooms and kitchens as their unique selling proposition, as the trend towards open plan living now takes precedence in this part of the world, ”
said Eckhard Pruy, CEO of Epoc Messe Frankfurt.”

“Interior decorators, architects and contractors will get their creative juices flowing by visiting the ISH Kitchen and Bath exhibition where a wide array of advanced bathroom fixtures, steam showers, whirlpools, and functional, stylized and accessible kitchen designs from the world’s leading suppliers and specialists will be on showcase, ” remarked Mr. Pruy.

Visitors will see the latest designs, concepts and products on the market aimed at improving lifestyle. Presenting design trends and solutions at the exhibition will be MIELE, Nolte Kuchen, Kohler, Kitchens & Beyond, GROHE, and many more. On display at the exhibition will be a wide range of mixers, antiscald faucets, steam shower stalls, whirlpool baths which give users a gentle massage with built in music systems and DVD players from a variety of suppliers and manufacturers from the US, Europe, the Far East and China.

“The modern bathroom has evolved from a functional space to a stylish sanctuary where you can relax and de-stress. It is no longer a room tucked away in a far corner of the house, but a carefully designed and conveniently arranged space that should be enjoyed, ” said Ms. Alysia Gilligan: Senior Show Manager, ISH Kitchen and Bath Middle East.

“With recent developments and advances in bathroom fixtures and equipment it has become possible for everyone to enjoy the luxury of a mini spa at home” she added.

“As consumers become aware of the benefits and importance of a healthy lifestyle there is an increasing demand for products that support wellbeing. With the fast paced, cosmopolitan way of life enjoyed by many people throughout the Middle East it is especially important to restore balance and harmony, and what better way to achieve this than at home, in a space designed to do just that.” said Ms. Gilligan.

The Middle East is witnessing record growth in property development and the UAE is leading the way largely due to its open and global approach to design and construction. This progressive way of thinking has made the real estate and construction sector a thriving and sustainable sector.

ISH Kitchen and Bath Middle East is the only design-led kitchen and bathroom exhibition in the Middle East, attracting key designers and manufacturers from around the world who come to present new products, interact with industry peers and source state-of-the-art market trends.

Wickes Furniture Co., which is liquidating its business, has signed a deal with a joint venture that will pay at least $3.5 million for rights to the furniture company’s store leases.

The joint venture that will lead the bidding on the leases includes Retail Consulting Services Inc., Hudson Capital Partners LLC, Crystal Capital fund LP and Julius M. Feinblum Real Estate Inc., according to papers filed Wednesday in the U.S. Bankruptcy Court in Wilmington, Del.

One of the country’s largest retailers, Wickes filed for Chapter 11 protection Feb. 3 and agreed to sell its assets quickly to cover debts. Rights to its store leases will be sold at a bankruptcy-court auction. Read more »

Home sales are slow, and furniture retailers are feeling the pinch. So is this a good time to launch a new furniture empire?

Joe Carron thinks so. He and partner Anand Patel plan to turn a Brandon’s Home Furnishings store in Wellington into a SoHo Living warehouse store.

The pair also has taken over an existing SoHo Living store on Clematis Street in West Palm Beach. Right now the store’s focus is sleek, contemporary furniture for small-scale homes, such as condos. But Carron and Patel plan to expand the store’s offerings, too.

Expanding a furniture business now seems risky. After all, the housing market is expected to get worse before it gets better, and experts predict an uptick is still a couple of years away. Already, there are casualties in the furniture industry: Earlier this year, veteran retailer Modernage closed its doors after 67 years in business.

But Carron and Patel, who are not affiliated with Brandon’s, have a strategy they think will overcome the market. Read more »

Merchandise Mart Properties Inc., the producers of over 300 events in North America, including the NeoCon Shows, bring you the Northwest’s premier conference and exposition for the interior design, construction and real estate management professional and enthusiast, September 26th & 27th at the Washington State Convention & Trade Center. With three shows in one, a premiere speaker line up, and the best networking opportunity of the year, this industry event is not to be missed! Washington’s very best, new and innovative products and concepts are showcased at Buildex, DesignTrends and Construct Seattle.

National and local associations participating in the show include: the American Society of Interior Designers (ASID Washington Chapter), International Interior Design Association (IIDA), the American Institute of Architects (AIA Washington Council), Associated Builders and Contactors (ABC), Cascadia Region Green Building Council, Building Owners and Managers Association (BOMA), and International Facility Management Association (IFMA). Read more »

Since 2005, Formanova, a maker of high-end furniture, has been trying to conquer a customer in Dubai, in the United Arab Emirates. It was in April this year that the company managed to sell its first products and conquered a large customer, Western Furniture, which owns five stores in the country. “In three months, all our products were sold out. Now, we are already shipping replacements for the furniture sold, plus a new line,” said the export manager at the company, Karina Botelho.

The sum of the first sale and the second one, which should be shipped in September, totalled over US$ 10,000. according to Karina, 26 items will be shipped, including dinner tables and chairs, various types of tables, sideboards, china closets, and buffets (a closet for keeping dishes). The furniture is all made of natural jequitiba wood, a noble wood typical of northern Brazil. Read more »

Lammert’s Furniture and Gift Co. said Wednesday that after nearly 150 years of serving the St. Louis area, it is going out of business.

“Frankly,” Martin Lammert V, president of the business, said in a statement, “we received an extremely attractive offer for the property. Furthermore, because of the terms of the agreement, which called for a rather quick closing, we did not have enough time to search for another location. As a result, we needed to facilitate the total liquidation.”

Terms of the real estate transaction agreement were not disclosed. Read more »

Kurt Amico, President of MidCity Office Furniture announced today that J Suzan Ben has joined the company. J Suzan has been a prominent interior designer and educator locally for over 20 years. Her background includes interior design, space planning and education as a instructor at Villa Maria College.

“Our clients are no longer looking for products- they are looking for a complete solution, they want us to create a highly functional workplace that is very aesthetically pleasing,” says Amico. “J Suzan brings both of these objectives to the forefront.” Read more »

Most motorists who want to replace their oil-leaking cars look for an auto mall, where they can try out models at several dealerships.

The Home Center Murrieta allows shoppers to have a similar array of choices when it’s time to replace the ratty, hopelessly out-of-style living-room couch.

The center, visible from Interstate 215 south of the Los Alamos Road interchange, is like a beefed-up version of the furniture row concept seen in most urban markets in the country. It’s an example of a retail cluster, suggesting shoppers make numerous stops before writing a check.

Home Center Murrieta contains some 20 stores. The center, which opened in 2005, has a mixture of small, locally owned stores and large showrooms of national chains.

Many managers say that Home Center Murrieta’s setup is good for all the merchants, as well as for shoppers, who in many cases would have to go to San Diego County or elsewhere outside the region to find some of its wares. Read more »