Mark Steele

By Matthew Spieler
Hoboken, N.J.—Two months after his brother Ira resigned, Joel Lefkowitz has stepped down as CEO of Hoboken Floors, the company started by their step-grandfather, Joseph Sakosits, in 1930. As such, Mark Steele, who has more than 20 years of international operations and manufacturing experience, has been appointed to lead the distributor.

Steele, 45, was most recently the CEO and president of Jakel, a manufacturer of electronic motors and blowers with annual sales of $85 million. Prior to that, he was president and COO of Eurodesign Cabinets, a $60 million turnkey provider of semi-custom cabinetry to leading new home builders in California and Nevada.

Craig Dean, chairman of Hoboken Wood Flooring, the distributor’s parent, called Steele “an outstanding professional manager and a successful leader with broad and deep sales and operations management expertise. He is just the type of executive we need right now to help us improve our financial performance and grow the business in the future.”

Despite being the industry’s largest distributor with estimated annual sales of more than $600 million, Dean pointed out, like most, Hoboken has been impacted by the construction slowdown. “It is important our customers and suppliers know we are taking action to respond to this slowdown and position the business for future growth. As the business is strengthened, Hoboken Floors will continue its core commitment to providing excellent service and quality products to its customers.”

Prior to his departure, Lefkowitz had talked about the company taking steps “to better meet the needs of our customers.”

Dean noted implementation of this plan began in June. “We are currently engaged in an effort to review and make improvements to operations in order to ensure the company is positioned for long-term growth while maintaining and even improving its offerings to customers. In addition to some personnel changes, we have already reduced a number of our operating costs and improved the efficiency of our operations. We have also been working to evolve our product offerings toward the products and lines for which demand is still strong even in this down market.”

One of the personnel changes referred to was the hiring of Bill Logie, a 25-year veteran of the distribution business, to lead Hoboken’s New England business unit. He was most recently at Beacon Roofing Supply of Massachusetts where he held a number of positions including director of customer service and vice president of acquisitions and integration.

Hoboken currently operates 13 distribution and design centers located across the eastern United States. Dean said the plan being implemented by the company is to provide each division with greater flexibility and independence such that they can each be responsive to the specific needs of their customers and the marketplace in which they compete. “Therefore, the strength of the Hoboken market presence will be complimented by tailored product offerings and customer service that provides the highest value to the customer.”

Though Lefkowitz remains a shareholder, his departure marks the end of an era with the family no longer operating the day-to-day business since being founded by their step-grandfather. The brothers bought the 77-year-old distributorship in 1996.

Their leadership in steering Hoboken to the top position among flooring distributors was recognized last year as part of Floor Covering News’ 20th Anniversary, when they were included among the 20 men most influential in changing the industry over the last 20 years ( FCNews, Sept. 18/25).

“Joel’s contributions to the company over many years have been considerable,” Dean concluded. “His passion and enthusiasm for the business have been felt by our people and throughout our network of customers and suppliers. He remains a shareholder in the business, and we look forward to benefiting from his knowledge and expertise going forward.”