TULSA, OKLA.—
Orchid Ceramics has announced that after nine years of bringing designers and consumers porcelain and ceramic tile for floors, countertops and walls, the company will be closing its U.S. operations.
With a tentative closure date around July 31, Orchid, based here, will halt commercialization of its products in the U.S. Orchid’s parent company, Corona, based in Colombia, made the decision for several strategic reasons:
Competitive challenges in the industry and opportunities available in developing countries, particularly in Colombia, coupled with the macroeconomic situation in the U.S.— including the adverse movement of the exchange rate and intense price sensitivity— has hindered consolidated profitability for Orchid.
“We are disappointed and saddened to be making this announcement,” said Kurt Graves, CEO. “We understand with the current economic situation it is a difficult but strategic decision for Corona to make. We want to assure our employees, vendors and distributors this process will be handled sensitively, respectfully and with full consideration of their needs.”
The closure will affect 22 Orchid employees directly, noted Tena Woolridge, marketing manager. “In terms of the employees who are directly affected at our distributors, that’s certainly a different number. We have many distributors and vendors who have dedicated people to serving, selling or doing different things with Orchid, so that will be a unique situation.”
In terms of its corporate headquarters, the company is working with the companies it leases space with. “We moved into this building just a very short time ago,” she said. “There is some ability to work with them on this front and hopefully we can have someone come in.
“Regarding two of our largest customers,” she added, “B&B in Sunrise, Fla., and Louisville Tile in New Albany, Ind.—we co- partner with them, and have distribution centers with them, so we are working with them and we are also working with a company called Cross Globe to help liquidate our inventories, settle with our customers and do the things we need to do. Those distribution centers will be shutting down as well.”
Orchid has built a reputation based on its brand pillars of integrity and philanthropic activities, she noted, demonstrated by its support of Tile Partners for America and Catholic Charities, among other programs. “Orchid product offerings include quality, value-oriented ceramic, porcelain, glass and decorative tiles. We’re also respected among designers and consumers for offering high-style, affordable-luxury products, including the newest Cubix and Carissa lines.”
For more information, call 866.867.8453.