Account review prediction: Furniture Factory Outlet
Steve’s breakdown: Sun Capital Partners, the new owner, is known for buying retail/restaurant chains and hiring an agency soon after. We see that happening here if it hasn’t already.
FORT SMITH, AK: Private equity firm Sun Capital Partners plans to accelerate growth of Furniture Factory Outlet following its acquisition of the 36 store chain.
Based in Fort Smith, Ark., Furniture Factory Outlet (FFO Home) operates 36 stores in Arkansas, Missouri, Oklahoma and Kansas. Sun Capital said it acquired the company, billed as a value-oriented home furnishings retailer, from Alpine Investors and believes significant expansion opportunities exist. The company also manufactures bedding under the Comfort Coil and Natural Elements brands.
In explaining Furniture Factory Outlet’s value propositions, Sun Capital said, “the retailer offers superior value products priced below the competition, and distinguishes itself by eschewing the showroom distribution model and allowing consumers to purchase products immediately from on-site inventory.”
According to Marc Leder, Sun Capital’s Co-CEO, “(Furniture Factory Outlet) has established itself as an outstanding value-oriented retailer, and we’re excited about the opportunity to leverage our strong retail sector expertise to help the business accelerate its growth plans. We share management’s belief that market success begins with offering a superior customer experience, and we’re committed to further enhancing this key hallmark of the FFO Home brand.”
“We see significant expansion opportunities for this business,” said Sun Capital senior managing director M. Steven Liff. “At Sun Capital, we can quickly bring to bear both financial and operational resources in order to rapidly capitalize on market growth opportunities. We look forward to collaborating with the FFO Home management team to help the business reach its full potential.”