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Heard on the street from the Sales Reps this week that Boyles Furniture throughout North Carolina is expected to go under any day now, as well as Gallahan's in Fredricksburg, VA who is talking with liquidator companies.
Be careful out there from whom your order. You do want to get your furniture and not be tied up in bankruptcy court fighting for your deposit to be returned. Do your research on the stores before you buy to make sure they are solvent.
Good advice. I am finding that these internet places may not be all that they seem.
That's interesting to hear. I'm not at the point where I'm checking out the viability/strength of businesses yet, but I have been getting ideas on what things should cost. I called Boyles today and the representative knew less about sectionals than I did. She was very nice, but she just couldn't put them together correctly herself to give me a useful quote until I explained very carefully what I needed. I would have been afraid to order from her because I don't think she could do it correctly. The price was not remarkable one way or the other.
Boyles is not known for having hot pricing. Because they are on the verge of collapse, if you're going to put down a large deposit its worth a quick call to the supplier to make sure their credit is still good and they are not being slow- shipped or on no-ship status.
What happens typically is stores will ask for a 50% deposit. If they are current with their suppliers then all goes relatively smoothly. But, if they are in payment default on past due bills the supplier puts a freeze on their account until they pay off some of their debt no new orders will be put into production. This leaves the customer in the clutch, as their pieces are NOT being made while this is ongoing.
If they can't clear their debt and go under, the customer is last in line at bankruptcy court to get their deposit money back. Landlords, Suppliers, the IRS, all get their money first if there is any to be had.
That's why its prudent to check out your stores before you lay down a lot of deposit cash. It can save a lot of grief.
Gallahan's in Fredricksburg VA is in full swing in its going out of business sale now (taken over by the liquidators). I had a delivery come in with my regular trucker and we were laughing at all the CRAP he had in the front of his 53' semi going to Gallahan's. New stock brought in by the Liquidator to take advantage of consumer greed. Stuff so cheap that the original Gallahan's would never had sold it, now the liquidator will milk the 'Going out Of Business' sale for the next couple of months as long as sales stay up, by buying junk, marking it up 4x what its worth, then putting in on SALE at 80% off. HA! Works every time they do it, too.....everyone runs to the sale, not even knowing what they're buying - sucked in by the 80% off signs. What a scam!
More collapses:
Marlborough Country Barn in CT has gone under. They had a beautiful property with numerous outbuildings and were one of the stores the rest of us in that category wished we could be like. Over-expansion = High Operating costs and they couldn't make it in this slow economy.
Mattress Discounters, a Wash DC based chain of bedding stores (140+ locations) filed for Bankruptcy Protection today, the second time in six years.
Many stores are just barely hanging on. And many USA suppliers have gone to reducing staff and a 4-day work week. There's really no end in sight, so only the lean and mean will survive. Adapt to to the market while trimming overhead to the bone, or perish.
which begs the question how are you doing Duane? I also hope that LaChance furniture in Gardner MA can hold out. They do get people from all over so I hope they can. When I finally make it back to MA I will no doubt shop with them again.
Thanks for asking!Quote:
Originally Posted by McCall
I had a pretty rough go and came close to going under in 2005/2006. I was fighting for my life battling cancer and it's hard to stay focused on work when the doctors tell you that you're ticket is getting punched. Surgical recovery added up to almost a 9 month period where I was unable to perform at my best. However i have the BEST customers in the world and with their help and understanding when things slipped through the cracks in that time period, we made it and are healthy both personally and in the business.
Along the way as well I figured out how to run lean as lean can be. I have no employees other than part time delivery help (at one time I had six), cut back on my very expensive commercial insurance, gave up my leased warehouse and back-up stock (whats on the floor is what I have in the store), I unpack all the furniture myself, eliminated advertising, clean the store and bathrooms personally, and even do my own diesel truck maintenance. My wife used to work here in the store, but now works for the county school system so that makes saves the health insurance premiums we were paying. I have no store debt and will not expand the store or buy new trucks/computers unless I can pay cash for them. My store front is nice, but not fancy or in the high rent part of Washington DC. I pay all my suppliers on time and they know that, so I can often get first access to limited deals or closeouts because of that.
All that adds up. So many stores don't know how to run lean - but if you can cut out $ 4K to $5K a month in expenses its enough to get you through the hard economy. Businesses run in cycles, and in the 80's and 90's it was great. But when the .dot.bomb crash hit in 2000/2001 followed by the Sept 11th attacks that was it for the furniture industry. It has not come back since and probably will not until there is recovery on war / debt / housing. Those that can ride out this long slow period will be the ones that will be well positioned when the market gets better.
I'm so small, that a couple sales a week is enough to keep me afloat and I am very grateful for the business that comes off the internet. Most my customers tend to shop with me time and time again, so I have a high loyalty factor and they eventually bring their grown-up kids to the store as well.
Keep buying! And if you can direct any business to Steve at Oster Furniture in IL, I know he would appreciate it as well.
:D
Thanks Duane!