Article Number : 2848 |
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| Date | 1/15/2008 8:30:14 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2848 |
| Abstract | Hicksville, N.Y.—Hoboken Floors is shutting its doors after 77 years in business. In what came as no surprise to many, the industry’s largest distributor gave termination notices to 120 people Oct. 29, informing them the company would “begin to wind down the business immediately... |
| Article | Hicksville, N.Y.—Hoboken Floors is shutting its doors after 77 years in business. In what came as no surprise to many, the industry’s largest distributor gave termination notices to 120 people Oct. 29, informing them the company would “begin to wind down the business immediately.” Industry insiders say not one but many factors contributed to Hoboken’s demise. The obvious one was the economy, particularly the new-home construction market. Some trace it to 2005, when private equity firm Code Hennessy & Simmons (CHS) purchased the majority from longtime owners Ira and Joel Lefkowitz, and the loss of the Mannington line occurred. Many say it was a philosophical change from individual ownership to corporate. Another possibility was Hoboken had more than 30 wood lines, a number many say is unmanageable. In the end, though, it comes down to money. Hoboken was highly leveraged, and multiple expansions only exacerbated the situation. Then there were issues with inventory, such as $80 million of goods for $350 million in business.” So where does the fault lie? We will never know. But as one of Hoboken’s former suppliers said, “This was inevitable.” |