New River closes outdoor furniture division
Early-buy orders will not be shipped
Cinde W. Ingram -- Casual Living, 12/2/2011 9:23:37 AM
New River Furniture Company closed its outdoor factory in Brazil, leaving casual furniture dealers who placed early-buy orders without that furniture resource.
Michael Mettendorf, vice president of sales and marketing, said he was contacted Tuesday night and told the factory owner had informed more than 100 workers Monday that the outdoor furniture factory in Medianeira, Brazil, was closed.
Reasons cited included the unfavorable exchange rate between the Brazilian currency and the U.S. dollar as well as Brazilian inflation in the cost of raw materials.
"I was just very shocked by it because we had just spent money on photography, new product development, samples, the show, advertisement - just a host of marketing materials which probably was over $100,000," said Mettendorf, who began sharing the news with sales reps and dealers on Wednesday.
The news was also being shared with Virginia Beach-based customer service, warehousing, finance, marketing and other personnel. "At this time of the year and in our economy, it's going to be very difficult to find something," Mettendorf said. "It would have not been my choice to end it this way."
The company entered the U.S. market in 2005, primarily by offering rockers made of Brazilian cherry and Brazilian maple wood. Its line expanded over the past six years to include eco-friendly, water-based Reve finishes and full deep seating collections.
The company had 600 dealers at closing, but had lost some of its largest customers because of pricing issues.
Mettendorf described this year's early-buy response as better than last year's. "The early buys will not be shipped, unless they can be satisfied with some existing inventory in the warehouse," he said. "Nothing new is coming from Brazil unless is in on the water. We have some merchandise in Virginia, which they will deplete and then close that warehouse. The bad thing about that is, you're talking about claims and warranty issues and you're walking away from that."
"It's bittersweet," Mettendorf said. "It's never easy shutting something down that you've invested in. You build something, you're part of creating a brand and making it worthwhile and you have people depending on you - not only your reps but your dealers. Obviously, the exit in itself is trying to the dealers. I would like to thank our dealers and everyone involved for their efforts in multi-years."
Phil Knight, Nike’s Founder often referred to getting their name into the press as, “Any ink is good ink!” Well, from my perspective, this article does not sound to good to me right now. This ink is simply not good ink. Please allow me to thank New River's hundreds of dealers (600+), an awesome national sales team, the NR leadership team in Brazil, and so many industry friends. I would like to specifically thank you for your support, business partnerships & friendships for seven wonderful years.
It is mind-boggling how in one week one goes from being involved in every facet of the business to the next week, wondering if you still have the opportunity to stay in the industry. Unfortunately, just like many of you, I did not see NR's closure coming (with recent sales, marketing, product and branding investments). I'm truly sorry for the burden this places on our own employees, incredible sales representatives and of course, our valued dealers – in losing a reliable resource in outdoor furniture and the issues with claims and/or warranties. There is a letter recently sent to all dealers by NR ownership that succinctly states that the Brazil factory will offer refunds in case of warranties/claims for the entire warranty period.
On the personal front, as I strongly desire to stay in our industry and believe we accomplished some wonderful things with NR in a short time (developing our brand into a category leader position), if you know of any opportunities in our industry, please feel free to reach out to me. It is my sincere hope to stay in the casual industry because I now consider it family! So, that’s where you can help us! Please call (423/227-1928) or email (mmett@yahoo.com) me with any opportunities or leads! It is a tough time for my family and I, and immediate leads from unposted job opportunities (there are no postings as companies simply do not have plans of adding anyone right now) and any referrals are appreciated! I'm prepared to interview and start a new partnership immediately. There are always opportunities for the person who knows how to lead, earn and drive business, and whose personality is engaging, deliberate, experienced and still willing to listen and learn! Someone once said, more is sold by listening than talking. And, I only need one worthwhile employment opportunity. Your positive referrals and kind thoughts are appreciated!
I like this quote: It is often hard to distinguish between the hard knocks in life and those of opportunity. ~ Frederick Phillips
Sincerely,
Michael Mettendorf, New River VP Sales and Marketing
Michael Mettendorf - 2011-12-07 11:27:55 EST
I am indeed very sorry of this Brazilian manufacturer behavior that I know very well. They told about the pricing problems some month ago, that was really very difficult to keep the offered price levels because they were losing money! but would never just communicate the shut down without a well scheduled discontinuation plan with New River.. this behavior just lead brazilian's supplier in a marginal condition of non reliable. I have been planing to enter the US market with some possible Brazilian suppliers and guess this situation will make my plans harder to be achieved. I would like to talk be in touch to New River's Commercial & Marketing CEO for possible sources of wooden outdoor collections, better in design and equivalent quality. my contacts : Skype = joyce.nicholson1; +55 11 4702 8583. email: joycentaves@gmail.com.
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