STRATEGY ONE  >  Volume IV  >  Number 2  >  Third Quarter 2006


In This Issue

A Glimpse Into the Future
(Page 2)


Website is Latest Link in Gramicci Revival
(Page 3)


Closeout Considerations
(Page 4)

 

 

 

 

 

 

 

 


STRATEGY ONE
Published by Buxbaum Group
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www.buxbaumgroup.com


Richter Unveils New Facilities

Richter
New plant in Mexico (above) and distribution center in Arizona will allow Richter to vastly expand production and keep prices competitive.

With employees and local officials looking on, Richter Designs’ new 335,000-square-foot furniture manufacturing facility was formally opened this summer in San Luis Rio Colorado, Mexico.

The new facility will be instrumental in helping Richter Designs, the dba of Buxbaum Group affiliate Apex Design Group, LLC, to expand production and keep prices competitive on the upholstered furniture it produces for some of the nation’s leading retailers, says David Ellis, CEO of Apex Design and President and COO of Buxbaum Group. Apex Design acquired the assets of Richter Manufacturing out of bankruptcy last November.

The San Luis Rio Colorado facility is just five miles from Richter’s new 120,000-square-foot cutting facility and distribution center in Somerton, Ariz., allowing cut fabrics and leather to be transported easily to the Mexican plant and finished furniture to be shipped just as easily back to Arizona for distribution. “The Arizona and Mexico facilities function as one,” notes Ellis. Richter’s executive offices and design center will remain in Los Angeles, which is less than five hours away from the new facility by car.

A major benefit of the new operation is its combined size. “This expands production capacity from two to three times our current volume, so it gives us ample room to grow,” Ellis explains. “It also allows us to continue offering our customers price competitiveness. As raw materials and freight costs increase, the challenge is how to keep prices down. We’re able to do that in the long term by moving to a lower-cost facility than the company’s prior plant in downtown Los Angeles.”

In fact, the new distribution center alone is larger than Richter’s entire factory in Los Angeles. Production is currently transitioning from that plant to San Luis Rio.

For more click here (Page 4)


Buxbaum Goes ‘On Patrol’ in
Swimwear Market

Paul BuxbaumWhen Buxbaum Group was brought in to sell the remaining inventory of swimwear maker Beach Patrol, the race began. It was April 21, late in the season for swimwear, and the Buxbaum team quickly came up with a strategy to get as much value as possible on behalf of the secured lender.

By the end of June, the task was complete. Working with the receivership estate, the company had sold the inventory and wound down Beach Patrol’s operations.
“We were efficient and productive at liquidating the assets to obtain the greatest value that could be gotten in the market in a short time frame,” notes Paul Buxbaum, Chairman and CEO of Buxbaum Group.

For more click here (Page 2)

 

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