I talked to my brother on the phone today and I got some info for those that want it. First, the CEO has shs in this co with more to come in the form of bonuses. He has a very large $$$ interest in making FBN profitable again and he will. FBN is selling furniture at a small profit, but not a loss, they're doing this to keep the $$$ coming in to stay in business. A few of their brands have their own trucking operations and these trucks are getting old and in need of repairs too often, that with the high fuel prices have made them consider paying an outside co. to move their freight. It looks like they may have a deal with a big trucking co. soon. They are not going out of business, they will be here a very long time. My brother has been with FBN for almost 12 years and he knows what's going on with them. I will stay here to monitor the rumors that are started here and verify them with him. I will try to answer any questions. BTW, you can call me Gina.
Sunny I'm sorry but I really do not understand the logic. Trucking cannot be the main issue with this company. If your brother works in the trucking division then he could be talking about some of the problems he faces in his work day but trucking is a simple factor facing every furniture manufacturer. If the corporate trucks are a strain then park them and have a common carrier Cary the loads. In the furniture industry the dealer is responsible for the freight charges so a slightly higher freight rate would be the burden of the individual dealer. I realize this would not address the corporate owned stores but for them there are many trucking companies that would be willing to make very competitive bids and begin hauling loads next week. Even old trucks in need of repairs can be sold if they are a strain on the bottom line. I have personally faced furniture trucking issues that can be resolved within hours not weeks.
I think the problem is that this company is being run by people from outside the furniture industry who are trying very hard to satisfy wall street rather that their dealer base or end consumer. Read the book "Furniture Wars - How America Lost a 50 Billion Dollar Industry" if you want to see a case study of outsiders in the furniture business. This business is made up of thousands of small operators with personal relationships and segmented into literally dozens of product sub categories. FBN sits in St. Louis (hardly the hot spot of the industry) disconnected from the everyday world of furniture. Furniture has become a simple commodity to this company and their products have become irrelevant to the consumer and their dealer base. They may be able to turn around their product problems but it looks line every brand faces an identity crisis (maybe with the exception of Lane and Hickory Chair).
Well, if you read my posts you will see that I NEVER said trucking is the main problem with this co. You sir are simply trying to turn what I said around. Lets look at what I said. They're selling furniture at a small profit right now just to pay the bills- Nope nothing about trucking in that statement, uness I missed something. That staement says a lot. That stsement says something is terribly wrong with FBN. The new CEO is doing EVERYTHING he can to turn FBN into a profitable co. again and getting rid of their inhouse trucking is just ONE step in that direction. My brother does NOT work in their trucking dept., He's at management level in the day to day operations. I would NEVER rec. anyone buy this stock, never, but I do know my brother and if he says they did not send employess home to collect UE ben. then they did not do that. That's why I'm here to begin with, stupid rumors like that. Anthing I post here, true, or false will not change what will happen to FBN in the long run so I have absolutey NO reason to lie. The new CEO was given a large amount of stock with more to come in the form of bonuses, if you were him what would you do? Shut the co. down? Doubt it.The thing with the inhouse trucking is this, it costs them multi millions of dollars to keep them on the road so they should have been parked a long time ago, that's just one small step to get theis co proitable again. Yes it will cost people their jobs but it will be the best thing for FBN because they can pay a trucking co. less than half what they've been spending to get that same freight delivered. You don't have to believe anything i say, I honestly don't care. I typing what I know to be the truth for those who do want to read it.
I believe that Scozzafava has a financial interest in turning FBN around, I just question his ability.
In regards to the trucks... How many are we talking about? If they are neglecting them due to internal cash flow problems, then it is worse then I thought. Unless, of course, they just don't have enough product to fill the trucks. That is another story.
All of the freight I receive from FBI companies comes common carrier. Many of the FBI companies already have deals in place with the carriers. In fact, forcing dealers to use specific carriers was one of the first things that began alienating their dealers. After that the problems just snowballed throughout the company.
The real problem is that you have accountants running a furniture company. They know money, not style, quality, merchandising or customer service.
I will try to answer your question about the trucks the best I can. If you need more info let me know and I WILL get it. The trucks they own are getting old and big repairs get very expensive, even some small ones cost a lot. They've decided to get rid of the old trucks and just hire trucking co.s to haul the freight. Sometimes it's hard to get a truck just when you need it going to certain places so they use more than one co. already. Werner Transportation has a contract with them for SE freight only, I do know that. They're in talks with JB trucking to handle the majority of the deliveries that their own trucks are doing now but not the SE deliveries, I beieve those will go to Werner. They're trying to get the best deal they can get. The trucks they own are a liability in more than one way, you have repairs, Driver pay, Insurance, fuel, and other reg. maintanance like tires, oiil changes, and the like. The new CEO does not think the trucks are worth keeping on the road. That's the reason for seeking out an outside co. The trucks are running right now but it will not be long before they're pulled off the road and sold and then replaced with an outside trucking co. They do have 2 big trucking companies wanting to handle the extra freight thirucking, don't know the other. Hope this helps.
No, he is NOT misinformed. This co. is sick. You can't determine that from my post? They're selling furniture for a very small profit so they can pay their bills, The trucks they do have are in need of repairs and some are parked due to very expensive repair needs so they're going to hire an outdside trucking co to deliver their freight. Let me ask you, what part of that makes you think this co is in good shape? I'll wait a little while so you can come up with a stupid answer. They'll be fine, their not fine right now and NOBODY WAS SENT HOME AND TOLD TO FILE FOR UE BENEFITS. Please don't accuse my brother of being misinformed or not telling the truth.