Tropitone Signs Letter Of Intent To Sell Veneman Division To Casual Furniture Veteran Bill Markowitz

Furniture World Magazine

Tropitone Furniture Co., Inc., a leading manufacturer of casual furniture, announced that it has signed a letter of intent to sell its Veneman division, which Tropitone acquired in 1998. According to Michael Echolds, Chief Executive Officer of Tropitone, Bill Markowitz, a casual furniture industry veteran who has held key positions with several leading manufacturers, including Brown Jordan and Woodard, has signed a letter of intent with Tropitone to purchase the Westminister, Ca.-based Veneman. Tropitone is committed to working with Markowitz during the change in ownership to ensure the transition goes smoothly for customers as well as employees, Echolds said. The transaction is expected to be complete by the end of 2003. Veneman was founded nearly 30 years ago as a cast aluminum manufacturer. More recently the range of materials has expanded to include plantation-grown teak, as well as a unique extruded resin material made in Europe. “When Tropitone acquired Veneman in 1998,” Echolds said, “our strategy was to increase Veneman’s retail sales by expanding its presence in fine furniture stores and showrooms across the country. But with the significantly increased competition recently in the specialty retail stores, which are the ‘bread and butter’ of our business, we have had to re-evaluate this strategy. “Management ultimately decided to concentrate 100 percent of our efforts on supporting our dealers in the specialty retail channel as they continue to grow their businesses and market the Tropitone and Basta Sole Collections,” Echolds said. According to Mr. Markowitz, his plan going forward with Veneman is to build upon the company’s established reputation of manufacturing fine indoor/outdoor furniture, which is hand crafted by highly skilled artisans around unique and sophisticated designs. This includes such versatile collections as Tissage, which is constructed of an innovative faux wicker material known as “Hularo” -- a resin extrusion made in France. “I am excited,” Markowitz said, “about the tremendous upside opportunity for high quality, uniquely designed fine indoor/outdoor furniture like the Veneman Collection. This product is very distinctive and not widely available in the market, so it represents an important way for furniture retailers to differentiate themselves while also improving their margins,” he said. Founded in 1954, Tropitone is based in Irvine, California, and is recognized throughout the casual furniture marketplace for its design leadership as well as its commitment to service and value. The company sells its products to retailers, designers and the hospitality trade under the Tropitone and Basta Sole trademarks. In addition to its headquarters and manufacturing plant in Irvine, the company operates a manufacturing facility in Sarasota, Florida. For more information about the company, visit www.tropitone.com.