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FURNITURE BRANDS INT'L INC. St. Louis, Mo. When A Market Tanks, It Helps To Cut Costs.(THE NEW AMERICA)
Byline: AMY REEVES
If you haven't bought any furniture in the last year and a half, you're not alone.
Starting in mid-2000, the combination of recession, retail bankruptcies and shaky consumer confidence conspired to send the industry into a free fall.
"It was the worst industry downturn in anyone's living memory," said Joel Havard, analyst with BB&T Capital Markets.
No major player escaped unharmed. The list of victims included Furniture Brands International Inc., which owns the Broyhill, Lane, Thomasville, Henredon and other name brands.
Last year the firm's sales shrank 10% from the prior year, while earnings dropped 37%.
"We responded to the soft business environment by taking a hard look at our cost structure," said Furniture Brands spokesman Lynn Chipperfield.
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