Acquisitions

Despite Fed's actions to make the stock market more stable, the housing crisis continues and one by one economy branches are affected. Furniture makers are now hit by the housing slump. This fall at the High Point Market- the twice-annual home decor and furnishings trade show that presents what consumers will see in stores next season- the place was rather empty. According to Doug Schock, a territory manager for OneCoast Midwest Home, the housing slump combined with the weak economy led to a downfall in the interest of people for the latest styles in sofas, bedroom sets, and dining room tables and chairs. This year although there wasn't any official attendance number, it was clearly obvious that the housing issue had a great influence on the industry turning it into a victim. More than 85,000 industry insiders descend on North Carolina for the market, at which thousands of vendors fill 188 buildings and 12 million square feet of showroom space with thousands of new products. Unfortunately most of them were still waiting for customers and even gave up to the custom of participating in the traditional dance of hand-holding buyers as they walk though bedroom and dining room displays. The entire issue is reinforced by Russ Ortiz, president and chief executive of Shine Home, a California-based home furnishings boutique. The forecast for the furniture market is a growth of 1.5 percent this year and 2.2 percent in 2008, according to journal Furniture Today. That might make the 2007 year one of the worst from 2001 when sales declined o.6 percent. Vaughan-Bassett Furniture Co., one of the nation's largest manufacturers of wood furnishings is one of the furniture companies that came up with new ideas like the model of "green furniture". Doug Bassett, a spokesman for the Virginia-based company, revealed that the company came with fewer products than last year due to the dealer's low interest. Besides all this, the cheaper Asian furniture becomes a real competition. 200 Virginia-based Stanley Furniture Co. workers hit the sack and Bombay Co. filled for bankruptcy. Furniture Brands International Inc., the maker of Broyhill, Thomasville and Lane brands registered a loss of 66 percent in the second quarter. However, Morningstar equity analyst John Gabriel says it is only a natural selection from which only the strongest will survive. Don't go away…more to come!

related story: http://news.yahoo.com/s/ap/20071008/ap_on_hi_te/sap_business_objects;_ylt=Am7UgJ34FjrSlU1YwC5aIT2s0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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