Vegas store is in new Bassett furniture group

Phil Levine

Friday, Dec. 10, 1999 | 11:04 a.m.

The parent of Bassett Furniture Direct and the owner of its Las Vegas store have formed a joint venture and set rapid expansion plans for the new company.

Bassett, Va.-based Bassett Furniture Industries Inc. and Phillip and Ronnie Ladin -- licencees of four Bassett stores in Texas and one in Las Vegas -- formed the Ladin Retail Group.

The new Houston-based company will initially operate Bassett's eight corporate stores, in addition to the Ladins' five outlets.

Under terms of the agreement, Bassett will own 51 percent of the joint venture while LRG and its partners will hold 49 percent.

Expansion plans call for LRG to develop five to 10 new Bassett stores per year in major metropolitan areas.

Bassett's Las Vegas store opened in late September at 7707 W. Sahara Ave. Encompassing 26,000 square feet, the store employs 30 people.

Company spokesman Jay Moore would not say if Las Vegas was among the cities targeted for expansion. However, Moore said the existing Las Vegas outlet is seen as one of Bassett's better performing stores.

"One of the reasons we feel this partnership is beneficial is that the Ladins have been very successful as a licencee," he said. "Although the Las Vegas store opened recently, we believe the city's proving to be a good market for us to be in."

Bassett Furniture Industries manufactures and sells a full line of home furniture, distributed through retailers nationwide.

Bassett officials believe the new agreement combines the company's financial strength with the Ladins' operational skills.

Moore said Bassett has a total of 51 retail outlets and 26 licencees; only the 13 stores owned by the company and the Ladins' are affected by the new joint venture.

Bassett also operates 14 manufacturing plants in five states.

Bassett's senior management structure -- including CEO Paul Fulton and Chief Operating Officer Robert Spilman -- remain unchanged as a result of the joint venture.

Ladin Retail Group Chief Executive Officer Ronnie Ladin said "the Bassett brand is one of the strongest in the country" and cited Bassett's advertising and marketing support as additional pluses resulting from the new partnership.

Bassett also said the joint venture will result in the closing of its Dumas, Ark.-based upholstery plant by Feb. 4 and the lay offs of 195 people. As a result, the company will incur a special charge of about $1.9 million in the fourth quarter.

The Nasdaq-listed company expects a loss of about $2.4 million in corporate retail operations for the year.

For the nine months ending Aug. 28, Bassett revenues fell 1 percent to $291.9 million.