Why did Rock House Brands buy Classic Leather?

For those in the business, this has been the burning question of December. Why did Rock House Brands buy Classic Leather?

For those that don't know Rock House Brands, they encompass the following companies all under the control of Alex Shuford III, the CEO.

Century Furniture (parent company)
Hancock and Moore
Jessica Charles
Hickory Chair
Highland House
Maitland Smith
Pearson

These are all premium brands, why do they need another leather house? They already have the best in category (Hancock and Moore) and Century Leather is significant as well, not to mention Hickory Chair. There has been lots of buzz about this because normally when a furniture maker is bought, its to service a specific niche in the market they are lacking. For years, every maker was chasing Hancock and Moore, no one could catch them so Century bought them in 2015 when they came up for sale. That was easy to figure out - who would not want to own that company - it was, and still is, best in category.

Classic Leather used to be a major player in the market, but they had downsized over the years and no longer had the dominance they one held. Still they have significant dealer distribution and made a good product. It was founded by Tommy Shores Sr and now owned by Tommy Shores Jr. It was put up for sale in the brokerage market, so it was not a "chased" acquisition but an open market one.

The reason is not as complex. It comes with a production facility, and workers, and that is a viable production line. Right now, in the Hickory NC region, there are no workers to hire. NONE. You could not get 80 people to hire as they are not out there. This industry cannot automate more than it already has, it requires hands-on skilled workers. Through retirement, illness, etc., the middle-aged work force that dominates the US Domestic Furniture Industry is aging out and young people don't want to work in this business. It's loud, it's on your feet all day, and the endless chatter of staple guns and sewing machines and cutters. It's endless line work and the average wage for someone coming out of High School is around $ 18 an hour. Once they develop their skill sets, they can make a nice living, but that takes several years to get there until they are Journeymen or Master Upholsterers. Pay them more? They have to date, and that comes to you and me as price increases and already consumers are saying ENOUGH - I don't want to pay that much for a sofa/chair/recliner.

So by purchasing Classic Leather, Rock House Brands has another Production line they can use for either Classic Leather, or any of their brands. As we come into 2023, the goal right now is to do whatever is possible to shorten production times, we KNOW that no one wants to wait 6 to 12 months for their order, the winner here will be the company that can whittle that down to 3 to 5 months while maintaining their quality. The only way you can do that is to acquire a work force that is already trained and can jump right on those sewing machines and pull those covers tight. So it really is a brilliant move to buy this company, very smart.

You are not going to see major improvements in production times in 2023, sorry to say. If you need something in weeks or a few months, consider imports. Those are already in warehouses and can ship out in less than a week. I know, I know "I don't want anything made in China or Vietnam", and I get that. The domestic furniture industry does not warehouse product, it's all made to order so plan accordingly.

I have a question that is somewhat related at least as far as production times are concerned.

I ordered a sofa from The Keeping Room the end of September and then added a chair to that order about the end of October. With the approximately six-month waiting time does the clock start for my particular situation the end of September (so approx. end of March for product delivery) or did I reset to the end of October (end of April for completion) when I added the Ace chair?

Just curious more than anything. Thank you!

Production times are all based on parts and component availability. Appx 90% of all H&M orders need some parts that are not in stock. Supply Chain Issues. That can be the cover, the springs, the frame parts, any number of things. When you add a piece to an existing order, then production does not start until all parts for all pieces on the order are on hand. For fastest delivery, allow for split shipping of your order (you will have higher shipping costs when doing single units)

Thank you for your explanation!