Hicksville, N.Y.—Ever since German laminate manufacturer Witex AG filed for Chapter 11 protection in its homeland (FC-News, June 9/16, 2003), it has been like a roller coaster ride in terms of what is going on with its products in North America. The latest event in the long and winding road came earlier this month with the German company announcing it has formed Witex Flooring Inc., as a wholly owned subsidiary to be its sole authorized distributor of Witex branded laminate floors in North America. Roland Elbracht, who was one of the people who initially helped establish the Witex brand in the U.S. in 1994, has re-joined the company as president of Witex Flooring. He comes to the company from Robina where he helped launch its line in the U.S. last year (FCNews, April 12/19, 2004). This move came in conjunction with Witex AG canceling the agreement it had with Witex USA, which last year was spun off by the German mill to an investment group consisting of senior U.S. management officials, two investment companies— KCA Capital and Chatham Capital —and Bill Hamlin, a veteran of merchandising and the home improvement business (FCNews, June 21/28, 2004). Witex USA, which is based in Kennesaw, Ga., still exists as a company but it no longer has the rights to market and sell flooring products under the Witex brand. Witex Flooring, which is also based in Kennesaw, will only deal with laminate flooring and not wood and ceramic as the other Witex had done. Elbracht said the new company will concentrate on only its core business of laminate flooring. “That’s our first priority and we will spend our efforts growing that business.” Quality Products He told FCNews that he came back because he “still believes in the Witex name and its products. Witex as a brand still has a good image because it has always made quality products and that hasn’t changed. In fact, we have some new laminate-related products in the pipestream for 2006 that are truly innovative in their design and construction and feel they will be a tremendous boost for our customers. “That’s the other thing,” he added. “Our customers have given us every indication that they continue to believe in the value of the Witex brand and want to continue with it. And, now that they will be working directly with the manufacturer since we are owned by it, they can expect improved service and assured availability of product, not to mention more competitive pricing. “Based on all this,” Elbracht noted, “we can build a successful niche in laminate based on high performance and good quality.” The current Witex Flooring operation consists of Elbracht and a team of eight people along with a warehouse in Kennesaw that already has the full range of Witex laminate in stock. “Right now, we have a very slim operation in terms of personnel,” he explained, “but we plan to add more people as needed.” Proper Service To ensure distributors and retailers across North America are properly serviced, despite having a small staff, the company formed an agreement with LET Industries of Atlanta to act as its sales force. LET is a newly formed sales and marketing company for the flooring industry and is comprised of owners Matt Thornton, who used to be the vice president of sales and marketing for Witex USA; Joey Lester, and Darryl Edwards. In addition to Thornton, a number of the 20 or so salespeople the company has across the U.S. and Canada, have experience with Witex branded products. “Our familiarity with Witex laminate and the market itself gives us a unique perspective on the Witex Flooring business,” said Edwards. “We have enormous confidence in the Witex products and our ability to sell them.” Elbracht said LET is basically an independent sales force, i.e. agents, with each person assigned a certain territory. Thornton said feedback from Witex customers “has been extremely positive. Distributors are anxious for shipments and are optimistic about the future.” He told FCNews that LET is set up to help both start-up companies or those who are having troubles in the U.S. and it can play a major role in keeping costs down while enabling a mill to establish itself. “We have no inventory or receivables, rather we do the sales, marketing and pricing as well as bring industry knowledge to the table.” Though Witex Flooring is LET’s first account, “and will be our main focus,” he said the company is in discussions with some wood and ceramic companies since the Witex agreement is just for laminate. While all this may sound confusing, one issue yet to be resolved is what happens to the Laura Ashley laminate, wood and ceramic products. Witex USA had been marketing and selling the designer brand but the laminate came from Witex. Piet Dossche, president and CEO of US Floors, actually holds the Laura Ashley licensing rights for hard surface flooring products—laminate, wood, ceramic and resilient—in North America “For the last four years Witex has been a manufacturer and distributor partner under the license,” he told FCNews. “So, now, we are evaluating what will be best for everyone, especially our retail customers.” Dossche said he and Witex AG are in discussions for the laminate, but nothing had been finalized at press time, and “we would like to work with others on the other products which is something we’re evaluating. “The Laura Ashley brand is still very viable and we want to keep it active,” he added, “but I want to make sure that both the distributor and retailer will be serviced properly.” As such, he stressed that current customers of Laura Ashley flooring products will continue to be serviced. “That is my first and foremost focus to ensure their business is not disrupted.” For more information as to how all this may affect your retail or distribution business, call Witex Flooring at 770/420-8281. —Matthew Spieler