Is Smith & Hawkins Closing Their Business? Its Time to Wait and Watch!
Is Smith & Hawkins Going Out Of Business
For thirty years, Smith & Hawkin has managed to produce impeccable furniture that seemed to be crafted and designed quite beautifully. However, their collection is only available through Target. So, what is all of this talk about them going out of business?
According to Star Tribune Business, at least 56 of these upscale Smith & Hawkin stores will be closing by the end of the year. Because of the effects of the recession, the company continued to suffer trying to increase their sales during the first two quarters beginning the year.
While sales seemed to take a plunge down by more than 20%, the company said they are anticipating more losses throughout the year. Smith & Hawkin is based in California holding about 700 employees in more than 20 states that might lose their jobs. Not to mention, many of the low volume stores were already closed late last year.
This certainly explains walking into many of the stores and being greeted by signs that read “50%-60% off on everything in the store.” Before their downfall, you could walk into one of these stores and expect to pay about $1400 for a pair of chairs that you might find on sale today for about $700.
Who would have thought that a company that posted annual sales of over $40 million in the 1990s, named the largest mail order garden retailer, would be closing its doors to the public? Although Smith, who was part owner of the company left because of the leadership style in the company and the company at one point had to be sold due to bankruptcy, the business still seemed to stay afloat.
In 2004, an investment firm called Scotts bought the business for a little over $67 million, and ever since then they have been losing money. The sad truth about it all is that Scotts seems to be having quite a bit of trouble trying to find a buyer for the company. Surely, closing the company down is the only thing that seems to make sense right now.
What is there to say about the stores that are doing pretty well? Well, if the national organization has some issues that cannot be worked out, all stores are affected by the outcome. One might think that the company could pull itself out of the hole like so many other companies that were affected by the economy, but it is not looking very good.
The only real time that the company seemed to be doing its best is at the beginning of its time. Once one of the men who helped make the company grow to a success in such a short time disappeared, so did the customers and sales. It would be nice to see a company like Smith & Hawkin, which began in the early 90s, make a comeback.
Sources: http://bit.ly/LXQ1BE and http://bit.ly/O83qJl