The information on the American Furniture fire appeared very different to me after looking at an article in the local paper after looking at the Company's press release. It appeared much worse in the local paper. Some other due diligence revealed that this company had a similarly devastating fire a few years back. Not sure of all of the particulars here but I guess lighting does strike twice. Another thing that came up appears that the predecessor company may have filed bankruptcy with this same CEO. Just some very unusual coincidences here. I'd like to hear from others about this.
After reading the CC transcripts - I still have a funny feeling about AFM. Q1 is suppose to be the strongest quarter - yet sales averaging $12mil per month doesnt bode well for the rest of the year. From others in the furniture industry I've heard that its not unusual for management to have undisclosed direct/indirect ownership interests in vendors (which may be common for that part of the country -- just like doing business in Mexico or Eastern Europe. All in all an uncomfortable situation with an apparent prior bankruptcy and strikingly similar plant fire a few years back. I would ask CODI management to fully disclose all related party transactions and require company officials adopt a strong code of ethics policy (and enforce too!)
CODI overall looks pretty good - just hope the rest of the businesses are stronger that this one.