New Ownership at American Furniture Manufacturing Excited about Its Investment and the Company’s Future

Furniture World Magazine

In the month since acquiring American Furniture Manufacturing, the new ownership and management team has become more and more excited about their new investment and its potential. In late July, an investor group led by Hampshire Equity Partners of New York and Hunt Private Equity Group in Dallas, as well as other investors, including senior management, purchased American Furniture.  The new ownership team plans to expand on American Furniture’s successful business model of efficiency and value in the promotional-priced upholstered furniture industry. “This company has an excellent reputation for producing quality products at competitive price points, and for its industry leading model for product delivery,” said Mike Thomas, Chief Executive Officer.  “Our excitement about the company’s potential has grown as we have learned more about the employees, the suppliers and the customers that make this such a successful business.  This is an investment group with both the financial strength and the resources to ensure that the company can grow and prosper for many years to come.” American Furniture, the nation’s largest company devoted totally to promotional furniture, is known for its breadth of upholstered products, all at the promotional price point levels, and for its manufacturing model of limited SKUs with married fabrics.  American Furniture produces stationary furniture, motion furniture, recliners and occasional chairs for retail customers across the United States and Canada.  The company produces all of its furniture for stock and can offer its customers 48-hour delivery, if needed. In addition to Thomas, key management includes Lyle Harris, Vice President of Sales and Marketing, and Ken Ranager, Director of Administration.  Harris has more than 17 years of sales and marketing experience, with 16 of those in the furniture industry.  Thomas began his career in the furniture industry in 1978.  Over the last 26 years, he has held leadership positions on both the supply and manufacturing side of the business.  Ranager has been in the furniture industry for some 18 years, having joined American Furniture in 2000. “Manufacturing and production excellence is at the heart of American Furniture, and customers depend upon us to have the products they need to satisfy their needs quickly and efficiently,” explained Harris. “The management team that has been assembled has the experience to maintain the company’s current strengths and expand in areas that will help the company grow.” “We believe we can strengthen our sales, marketing and merchandising support in a way that will help the company grow,” said Harris.  “We will deploy more horsepower into the field, with a sales focus that moves from merely being order takers to being order generators, and that truly puts a face on the company for all of our customers.  There are both major retail segments and geographic areas in which we feel American Furniture can grow.” According to the company, it expects its sales focus to lead to expanded manufacturing demands that will require an additional 150,000 to 200,000 square feet of manufacturing space over the next 12 to 16 months.  All expansion will take place in the company’s owned Pontotoc, Mississippi, location. “For many of us, like me, who have dedicated our careers to the upholstered furniture business in northeast Mississippi, this is a great opportunity to have a positive lasting impact,” added Thomas.  “Having purchased a great company with an excellent labor force, and a dedicated and deep investor group, American Furniture’s potential is limitless.  American Furniture will continue to expand on the excellent reputation established by the former owners and managers who, as part of the transaction, have agreed not to compete with American Furniture for a period of five years.” American Furniture is based in Pontotoc, Mississippi.  The company has approximately 750 employees.  American Furniture has some 800 retail customers across the country, including such well known names as Value City in Ohio, Badcock Furniture in Florida, Farmers Furniture in Georgia, American Furniture Warehouse in Colorado, and many other multi and single store retailers.