Havertys Furniture and Furniture Brands International Announce End of Strategic Alliance Relationship

Furniture World Magazine

Haverty Furniture Companies, Inc. announced that Havertys and Furniture Brands International will end their strategic alliance relationship, formed in February 1998, as of December 31, 2003. This alliance covered brands and products of Thomasville, Broyhill and Lane -- three of the companies ownedby Furniture Brands. The alliance provided that Havertys would allocate up to one-half of the retail space in its stores to the display of products manufactured by the three Furniture Brands companies, and Furniture Brands agreed to provide increased service support to each of Havertys' regional distribution centers. Clarence H. Smith, president and chief executive officer of Havertys, stated, "While the strategic alliance relationship between Havertys and Furniture Brands has proven to be beneficial to both companies -- and it was unprecedented in the furniture industry when announced – the business strategies of each have evolved since 1998. Furniture Brands has advised us that Thomasville intends to accelerate the development of its single branded stores program in our markets. We have established our successful Havertys brand products, which we expect to continue to develop and expand. We will be replacing Thomasville products with premium Havertys collections and other premium lines. "Havertys will continue to be a major customer of Furniture Brands, and the Broyhill and Lane brand names continue to be an important part of Havertys' retail offering. We are committed to maintaining – and strengthening -- our relationship, and we look forward to many more years of close ties between our two industry-leading companies," Smith concluded. Havertys is a full-service home furnishings retailer with 113 showrooms in 14 southern and central states providing its customers with a wide selection of quality merchandise in middle- to upper-middle price ranges. Additional information is available on the company's website at http://www.havertys.com.