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Wickes Cos. said it's putting Simmons U.S.A. and Simmons International, a leading bedding manufacturer, up available, after purchasing the company seven months ago in Gulf & Western.

In a move that surprised couple bedding industry executives, Wickes Stated it is divesting itself of Simmons and general retailing companies in order to generate income for acquisitions in core companies. It is also promoting three retail chains. https://www.facebook.com/bestfutonmattressreviews/

Michael Sitrick, senior vice president of Wickes, said, "Simmons is rewarding and a good organization, but it does not fit in with our long term strategy.'

He denied that the company in currently negotiating to sell Simmons to some particular group, and declined to comment on recurring reports of a buyout led by Simmons president Robert Magnusson. Magnusson declined to comment on any possible plans of a leveraged buyout by management.

"We Aren't engaged in active negotiations at this time to Market Simmons, even though it is up for sale,' Sitrick said. "We would have announced it if we were.'

Wickes, that purchased Simmons last year after it bought the Consumer Products Group of Gulf & Western, is promoting Simmons U.S.A. and Simmons International, which produces bedding and sleep sofas. It'll keep Simmons Universal, a smaller branch which includes Greeff Fabrics and Thonet, a contract furniture manufacturer.

Sitrick highlighted that home decor is a core business for Wickes and said there are no plans to sell either Wickes Furniture or Leath Furniture, '' both of which he said were "very profitable.'

"Our decision to market doesn't have negative implications with Regard to Simmons. It will not fit into our long-term startegy. We're promoting the Women's World shops, which can be one of the most prosperous kinds of shops in that industry, but it does not fit in with our plans.'

Sitrick also declined to speculate on what Type of timetable the Firm has for selling Simmons, but Sanford Sigoloff, chairman of Wickes, stated he wishes to complete its divestitures in order to take advantage of acquisition opportunities.

In 1985, the aggregate earnings of the Gulf & Western customer Products group had annual revenue of $700 million. Sitrick declined to split out Simmons' annual sales, but they are estimated at $230 to $240 million at the USA and $375 million world-wide.

Previously, Simmons was the largest bedding manufacturer, but a History of quality, operations and support problems over the past couple of decades has sliced its market share by up to half, and pushed off it lots of retail floors.

But, direction, led by Magnusson, has recently implemented A strategy to handle both service and product complaints. The product brand recognition which has carried it through the majority of times makes Magnusson convinced that it might recover its lost market share.

Gulf & Western's purchase of the ailing firm in 1978, And its subsequent tapping of Magnusson, then venture of Stearns & Foster, to lead the newly separated bedding department termed Simmons U.S.A., suggested the beginning of a whole restructuring of everything from products to processes to personnel.

In a previous interview with HFD, Magnusson explained that Simmons' downturn started with extensive warranty returns in the mid-to-late 1960s. The organization's attempts to increase profitability in the wake of these returns centered on cutting costs in the production process and putting a reign on investments to preserve and update the plants, each of which ultimately resulted in a weaker product.

The effects of the factors were compounded by an operating System badly in need of revamping. The company had in place a conglomerate accounting program, which offered no way of holding plants accountable for their quality or profitability. And with no accountability, even the best of employees were never challenged to take an individual interest in the company's bottom line--a difficulty that wholly-owned and operated businesses are especially vulnerable to.

The damage has been extensive. Simmons' return rate in the Mid-to-late 1970's was the highest in the industry, according to Magnusson, and its market share shrunk from 24 percent from the late 1960's to 12 percent from the late 1970's. Probably more challenging to quantify--and perhaps more difficult to mend--compared to the number of products being returned was the reduction of retail salespeople's confidence in the Simmons merchandise. "The variety of accounts that fell was enormous,' Magnusson stated. "The number of salespeople deciding to not market the item was tremendous.'

Magnusson joined the business in 1979 and methodically started Addressing all these problems. He instituted a program of monthly quality review meetings to identify needed product changes; he led modifications in methods and materials; he restructured the company along product lines, creating individual profit centers; he made a few important personnel changes, while also promoting a decrease, through both attrition and an early retirement plan, at the total number of Simmons employees; and he introduced programs from the factories to take advantage of an owned-and-operated firm's trend to more easily muster worker pride and enthusiasm around a national identity.

In a year and a half, Magnusson said, indications of advancement Were in the works: Materials and approaches changes were producing an improved product; the decline in marketshare had been postponed--and, since that time, marginally reversed; the number of consumer complaints and yields were starting to head downward.

Magnusson calls Simmons' new Beautyrest Contour Flex unit the "culmination of the quality narrative' The mattress includes pocketed coils ultrasonically bonded together. "Before, the rolls were tied together with string. That gave the product an intrinsic weakness, ''' he said. "Now the rolls are sealed together. This gives the device stability and integrity while still retaining the coil actions.' He explained that adding to the device's advantages is the fact that pocketed coils, by themselves, are "inherently comfortable. We could use less upholstery, and gain a price advantage.'

Eliminating the need for many layers of upholstery also largely Eliminates the potential for depression and sags in a mattress, because, he said, a compression of upholstery is what generates those depressions. His assertions of enhanced quality were extended a measure of service by a top durability rating for its Beautyrest Royalty, a Contour Flex model, in the March 1986 issue of Consumer Reports. "We're confident that we're likely to get the lowest return rate, as opposed to the maximal,' he explained. "Returns are now down to a minimal rate.' https://www.quora.com/profile/Futon-Mattress/Futon-Mattress/Best-Futon-Mattress-Reviews

Other developments at Simmons have concentrated on installing systems To make the business more responsive to retailers. Simmons currently has 12 plants producing innerspring mattresses, two of which--people at Denver and Seattle--were inserted in the last 18 months. With these improvements, Magnusson said, "we could provide powerful, competitive service to almost all parts of the United States. Last year there were some areas where we were not pleased with our service. We finally have a computer-based made-to-order system in each plant. It allows us in the immediate metropolitan regions to give three- to four-day delivery, six- to eight-day in outlying places, all while decreasing our finished-stock inventory.'

And most recently, Simmons has developed a complex sales Compensation program that tailors different sales goals to fit each of Simmons' 130 territories. "Sales compensation was just another piece of the puzzle,' said Len Gaby, vice president and general manager. "Our sales agents are highly encouraged and feel that they have a schedule that meets their unique challenge.'

Magnusson emphasized that Simmons' solutions are long-term ones; Impact is anticipated to be felt "in 1986, 1987, and outside. The memories of retail salespeople are long. It takes time to recover their confidence. It takes a while to convince them of the positive benefits of the improvements we have made. Our Number One priority would be to solidify our relationships with our existing accounts.'

Priorities for the future, '' he said, include targeting "major quality traders' that can "fill the voids in our supply channel'; fostering marketing programs; and continuing to develop the new second-generation Contour Flex, that requires a smaller investment in materials and capital. That model has already been released in England, France, Japan and Canada. He believes it's possible for Simmons to increase its market share by 1/2 of one percent every year, which could equal $10 million in increased sales.

"Now we've got the service, we have the product, we have a Fully integrated app,' Magnusson stated. "My feeling is that Simmons is in the best place for significant rise of anyone within our industry. We were able to stay Number Two, and we have the potential to recover the number one spot.' He added, the market is starting to recognize the gap in Simmons. "In the past year we opened 100 new accounts,' he said. "A range of accounts are starting to seriously look at the line '

Would Simmons make it backwards?  To a large extent, producers say they've yet to see any Evidence of an end to Simmons' quality and distribution issues.

"No, the grade issues aren't over, not according to what we hear from retailers,' said one executive.

Another agreed that Simmons nevertheless has a bad record in both Quality and support: "They have not solved many problems. Simmons hasn't changed.'

However, some retailers say they are seeing progress. Two, in Specific, were determined about improvements. "Since October, using the new solution, there has been a massive turnaround, ''' said Jay Schiller of City Mattress. "The largest difficulty was human anatomy depressions. Since October, we have not had any issues.'

Simmons is A-Number One in my novel,' said Roger Magowitz of Mattress  Discounters. "There has been a complete turnaround. We did Have problems per year or a year and a half ago. Now I'd put their quality up against any other brand without hesitation. We get eight-day dispatch--in eight days we are getting our orders'

Both retailers attributed the improvement in substantial part to new People at the Elizabeth, N.J. plant, that had been considered especially weak in the past. "The Elizabeth plant is the one that's shown the most improvement,' said Magnusson. "It had been the one that needed the most improvement.'

Ed Friedman, general merchandise manager, dwelling, of Foley's, has Also noticed changes. "There were some serious issues,' he said. "But at the last three months, manufacturers and quality' service have significantly enhanced in the southwest area. I provide Bob Magnusson the credit. He faced an extremely difficult competitive situation, and he responded very well.' Before him, Simmons spoke a lot about improvement --but now we've seen some definite improvement.'

Other retailers were hesitant. Some said although they have Seen indications of improvement from the past months, it will take another year or so to completely evaluate how the new product is going to do. "Delivery has increased in the last five or four months,' one said.

"I've noticed that returns have gone down in the last six months,' said another. "But they were infamous. He pointed out that Simmons has made several major changes in personnel. "There's been so much change, it's tough to know who to speak to.'

Magnusson said that as far as direction goes, any confusion About who is in charge at the crops is a "holdover' response to events previously. "We have not had any changes in plant control structure in the last year or year and a half.'

As Simmons attempts to make a comeback, many agree it has two Factors in its favor. The first is strong consumer brand consciousness, the result of a decades-long investment. "Simmons' brand consciousness is horribly strong,' said one executive.

The next is loyalty on the part of some retailers that stayed With the manufacturer regardless of complaints and returns. Schiller was among those retailers. "When many dealers abandoned ship, we stayed,' he said. "That's my character and the nature of my business. We had problems, and they Understand we had difficulties. In the long run, it worked out nicely for people.'  https://www.quora.com/profile/Futon-Mattress/Futon-Mattress/Futon-Mattress-Queen-Size