RILEY'S FINE FURNITURE

NAME OF STORE:
Riley’s Fine Furniture-Colorado

PROFILE:
Patrick Unverferth was an experienced home furniture retailer who owned retail furniture stores, model home outlets, and Serta bedding galleries in Colorado. While a new Serta store concept promised exceptional growth opportunities, the financial demands of his existing furniture operations limited his plans for bedding store expansion. Patrick contacted Richard Glabman of Deere Park for a no cost consultation on developing a strategy for his future.

After initial telephone conversations, Deere Park developed alternative financial models and conducted market research. After Richard Glabman reviewed the preliminary findings and options, Richard visited Mr. Unverferth’s stores in central Colorado to assess the execution of several alternative plans. After considering multiple strategies, Mr. Unverferth decided to close his home furnishings operations and invest the Sale Proceeds into the growth of his bedding stores. Mr. Unverferth wanted the closing of his furniture operation to generate sufficient funds to pay all corporate debts and the Sale to generate excess profits for investment in the development of bedding galleries in multiple cities and states.

Riley’s Fine Furniture was the cornerstone of Mr. Unverferth’s furniture operation. Selling such established resources as Drexel Heritage, Bernhardt, Century, Heckman, BarcaLounger and others, Mr. Unverferth required a Sale Event that not only produced strong financial results, but one that complemented his Serta bedding galleries. Multiple industry sources advised Mr. Unverferth that commitments made by Deere Park would be kept and they had the reputation for being “the best in the business.” Despite the economy taking a substantial negative turn in the fall of 2008, Mr. Unverferth put his faith in the services of Deere Park to produce the results he needed for expansion.

OBJECTIVES:
Sell all home furnishings from multiple locations, recover cost on inventory, generate a Sale Profit and protect the image and reputation of the owner’s other business ventures.

PROJECT:
Deere Park continued the assessment of all home furnishings competitors in the area of Riley’s Fine Furniture. Recognizing the potential for improved profitability, Richard Glabman recommended the rental of both additional retail display space and additional warehouse space. Mr. Unverferth followed this advice by tripling his display and warehouse utilization to approximately Fifty Thousand combined feet. Deere Park also offered the suggestion to add hand made oriental rugs, a product category that had not been utilized by Riley’s.

RESULTS:
Because of the strong values available through Deere Park’s inventory sources and the experienced sales team, hand made Oriental rug sales were more than 10% of total Sale volume with sustained gross margin of over 45%. All bedding sales were referred to Mr. Unverferth’s alternative stores, creating a significant increase in the bedding galleries business, despite decreasing retail conditions in general. The Riley’s Fine Furniture Sale generated millions of dollars of sales with strong gross margins and produced a substantial six figure Sale profit for the owner. Patrick Unverferth summarized his experience with Deere Park by writing, "You completed all of your promises and conducted the Sale with dignity and a level of professionalism that was most impressive. I was able to leave the day to day management of the Sale in your hands and focus my attention on my other home furnishings businesses. Thank you for a job well done."

▶For additional information, refer to the Riley's letter on the “References” page.