Berkline, a leading home furnishings manufacturer specializing in reclining sofas, sectionals, chairs, Shiatsu massage, and home theater seating, announced that the company's owners have made an additional equity investment of $6 million in the business to provide further capital for growth and expansion of its product line. The announcement comes following the recent appointment of President and CEO Robert Burch, who is leading a revitalized senior management team.
Berkline said that with the assistance of its private equity owners, an affiliate of Sun Capital Partners, the company has successfully renegotiated its credit agreement with Wells Fargo. Berkline continues to pay down debt, and has an appropriate amount of working capital available to reinvest in the business and re-focus existing markets.
“Berkline now has a stable financial position that will allow us to proactively seize growth opportunities and continue to refine our focus in North America,” said Burch. “While the overall environment remains challenging, we are seeing the beginning of a financial upswing. We have also just completed our most successful quarter since 2006, and expect significant expansion in the next three years,” he added. “With the additional liquidity, Berkline is primed to gain marketshare in our target markets, and expand into additional segments with some unique, innovative new designs at attractive price points.”
New Offerings at Fall Markets
Building on strong momentum from the High Point Market in April, Berkline is poised to update, expand, and redesign its motion furniture offerings for today’s market. The company plans to showcase an expanded product line at the Las Vegas Market in September and High Point Market in October centered around providing a unique mix of functional comfortability and aesthetic design, as well as re-introducing more value-priced products.
“We are differentiated in a number of ways, but most specifically in our structure, which combines a broad range of imported offerings with a strong line of domestically manufactured products,” said Burch. “Not only does this allow us to offer more choices to our client base, but provides a unique flexibility in meeting customer demand in terms of both price point and product innovation.”
Revitalized Management Team
With more than 30 years experience in general management and operations roles – most recently as executive vice president of operations for Simmons Bedding Company and previously as a senior executive for Steelcase, Inc. – Burch is leading a talented senior management team that includes new Chief Financial Officer Ben Ward. Ward previously served for 11 years as CFO of Imperial Group, a manufacturer of heavy-duty truck parts, and before that spent 14 years as controller at Whitson Lumber Company.
The management team also includes four senior executives, each with at least 14 years of experience at Berkline.
Bruce Sinning, vice president of merchandising, has been with the company since 1995, and has over 25 years of experience in the home furnishings industry.
- Grey Hunsucker, vice president of sales, joined in 1995 and also has over 25 years of industry experience at BenchCraft, Simmons Upholstery, and The Stratford Companies.
- Bob Ruppert, vice president of operations with responsibility for manufacturing, logistics, and supply chain, spent 10 years in operations with Rayovac Corp. before coming to Berkline in 1994.
- David Popkin joined Berkline in 1983 and now serves as vice president of international business, as well as corporate counsel for the company.
About Berkline: Berkline has been a leading North American manufacturer of upholstered furniture for more than 75 years whose products enjoy a number three market share in reclining sofas, love seats, sectionals and a leading position in home theater products. Product is sold through regional and national furniture chains, big box stores, and department stores. The company’s headquarters is located in Morristown, Tennessee. For more information about Berkline and its products, please visit www.berkline.com.