Rossi Furniture

NAME OF STORE:
Rossi Furniture

PROFILE:
After successfully operating in the Chicago area for over 100 years (since 1902), the Rossi family decided to build a state of the art combined showroom, warehouse and business center for their furniture and real estate division. While the Rossi family had extensive experience in owning and operating retail furniture stores, the new store complex was to be ideally located in Downers Grove, Illinois, with approximately 100,000 square feet of showroom, warehouse and office complex. The furniture store operation was completed with the latest state of the art computer systems, warehouse facilities, and designer oriented displays. Customers were to able to shop from over an acre of display, choosing from such well known resources as Lexington, Sherrill, Heckman, Flair, John Richard, Natuzzi, Pennsylvania House, Elite Leather, Schillig, Weiman and many of the industry's most reputable ventors. In addition to using the expertise of the family's own experienced furniture management, the company also regularly hired professional advisors to assist in the retail displays, marketing and merchandising of the new store.

While experts forecasted the store would generate in excess of twelve to fifteen million dollars in retail sales a year, the actual performance of the store did not meet such projections. For several years, the Rossi family attempted to find sales advisors to bring the store to its projected potential. Finally, after several years of such services and "specialty promotions" which promised profits but did not produce results, upon the advice of other trusted furniture contacts, Carl Rossi contacted Richard Glabman of Deere Park to evaluate all options.

Carl Rossi, asked Richard Glabman for a strategy to reposition the store, but also requested a frank evaluation of the company's use of past promotions, and the time line to needed to restructure store operations. After reviewing all options, and seeing the damage done to the store's reputation by past "specialty promotions from industry promotors", the family made the difficult decision that their building would provide a better financial return by a sale or lease, without the furniture operation. The Rossi family engaged Deere Park to conduct a final store closing event.

OBJECTIVES:
Preserve the outstanding 100 year old reputation of the Rossi Family name, provide uncompromising service to existing and new customers, recover full cost of all Rossi inventory, remove all risk and requirements for the Rossi Family to operate the store, and generate a substantial "Sale Profit" for the Rossi Family. Carl Rossi, deferred all operational and personnel decisions to Deere Park, including the retention or termination of family members working in the furniture division. Carl Rossi confirmed his decision by stating: " If we did not have total trust in Deere Park's abilities, or if Deere Park had not clearly demonstrated so many successful results with many of the people I know in the industry, we would not have engaged Deere Park. We hired Deere Park as our experts. We trust them to bring us the results we want as they know best".

Deere Park provided a detailed Pro-Forma for projected Sale results. Carl Rossi commented about the Pro Forma upon by saying, "If you even come close to these projected results, I will be most satisfied"

RESULTS:
The final results of the "Sale" brought net financial benefits to the Rossi Family that exceeded the Pro-Forma projection. Sales and gross margins were greater than projections with less expenses than forecasted. During the Sale, through the Services of Deere Park, the store operated on a projected annual volume in excess of Twenty Million Dollars. The Rossi family received dollar for dollar for their Starting Inventory value, which was in excess of $500,000, and also received a significant Sale profit distribution. The Sale Profit was in part attributed to the more than $2,500,000 special value new inventory added by Deere Park during the approximate thirteen week event. Because of the sourcing and buying power of Deere Park, retail customers immediately recognized outstanding values from the same resources as originally offered by Rossi Furniture. Deere Park was able to source such merchandise at costs of 30% to 50% less than previous wholesale cost available to Rossi Furniture. Deere Park provided all Sales personnel, which averaged in excess of $35,000 net sales a week for the entire event. While the Rossi family utilized multiple relatives within the company as certified public accountants, reviewing the daily records of Deere Park brought glowing accolades from the Rossi family for the daily details of Deere Park accounting.

The store was left in broom clean condition with all inventory sold, all service completed, and all business matters closed. The Rossi Family was most satisfied with all aspects of the project and documented their feelings by their letter of recommendation to Deere Park. Richard Glabman and the Rossi family remain in contact and good friends as well as business associates.

▶CLICK HERE to see a letter from the Rossi Family