Breaking News: Ragazzi going out of business
Ragazzi,
the Quebec-based nursery furniture maker, announced it is closing its doors
effective today May 1.
Ragazzi sent this letter to dealers, blaming "today's economic realities" in the shutdown. BABY BARGAINS obtained a copy from an authorized Ragazzi dealer.
Ragazzi, also known as D & F Furniture/Les Meubles D & F, told its dealers it plans to fulfill all outstanding orders received by May 12 if dealers pay Ragazzi by wire transfer.
In business since 1972, Ragazzi is among North America's largest nursery furniture makers and a mainstay of specialty stores. Among independent furniture stores, Ragazzi is a top vendor.
Ragazzi told dealers it plans to "wind down its domestic manufacturing operations on an orderly basis and focus on its importing activities." Ragazzi then asks for wire transfers of cash to cover any outstanding orders. It is unclear whether this means Ragazzi plans to reorganize as an import-only company under another name---Ragazzi recently started a subsidiary called Bambino to import furniture from Chile. A call made after-hours to Ragazzi's headquarters was not returned and there is no mention of this situation on Ragazzi's home page.
All of Ragazzi's furniture is made in a plant in Quebec.
Like many furniture makers, Ragazzi suffered sales declines in recent years as more nursery furniture was imported from China. Other Canadian crib makers have seen similar fates---rival EG's assets was sold to rocker-maker Dutailier in 2004. Ragazzi also refused to sell its wares in chains stores and instead focused on independents. However, the number of indie stores has shrunk over the years as chains like Babies R Us expanded.
The recent rise in the Canadian dollar probably also played a role in Ragazzi's demise. The currency exchange made Ragazzi's furniture more expensive in the US; the average Ragazzi crib now retails for $600 to $700. A Chinese-made crib sold in Babies R US can be had for $300. In the late 90's, when the Canadian dollar was weak, a flood of Canadian exports accounted for 30% of the US crib market, according to our estimates.
If Ragazzi re-organizes itself as an import-only brand, it will be following other former crib makers: Child Craft and Simmons. Child Craft switched to all imports in 2000 and Simmons recently shuttered its domestic plant and sold its name rights to Delta. Delta now imports cribs from China under the Simmons brand.
Since all this news is happening after hours, we hope to have additional updates tomorrow. Stay tuned.
Update 6-21-06: Ragazzi has pulled down their web site. If you need to reach Ragazzi for parts or a warranty question, call 888-324-7886.
Ragazzi sent this letter to dealers, blaming "today's economic realities" in the shutdown. BABY BARGAINS obtained a copy from an authorized Ragazzi dealer.
Ragazzi, also known as D & F Furniture/Les Meubles D & F, told its dealers it plans to fulfill all outstanding orders received by May 12 if dealers pay Ragazzi by wire transfer.
In business since 1972, Ragazzi is among North America's largest nursery furniture makers and a mainstay of specialty stores. Among independent furniture stores, Ragazzi is a top vendor.
Ragazzi told dealers it plans to "wind down its domestic manufacturing operations on an orderly basis and focus on its importing activities." Ragazzi then asks for wire transfers of cash to cover any outstanding orders. It is unclear whether this means Ragazzi plans to reorganize as an import-only company under another name---Ragazzi recently started a subsidiary called Bambino to import furniture from Chile. A call made after-hours to Ragazzi's headquarters was not returned and there is no mention of this situation on Ragazzi's home page.
All of Ragazzi's furniture is made in a plant in Quebec.
Like many furniture makers, Ragazzi suffered sales declines in recent years as more nursery furniture was imported from China. Other Canadian crib makers have seen similar fates---rival EG's assets was sold to rocker-maker Dutailier in 2004. Ragazzi also refused to sell its wares in chains stores and instead focused on independents. However, the number of indie stores has shrunk over the years as chains like Babies R Us expanded.
The recent rise in the Canadian dollar probably also played a role in Ragazzi's demise. The currency exchange made Ragazzi's furniture more expensive in the US; the average Ragazzi crib now retails for $600 to $700. A Chinese-made crib sold in Babies R US can be had for $300. In the late 90's, when the Canadian dollar was weak, a flood of Canadian exports accounted for 30% of the US crib market, according to our estimates.
If Ragazzi re-organizes itself as an import-only brand, it will be following other former crib makers: Child Craft and Simmons. Child Craft switched to all imports in 2000 and Simmons recently shuttered its domestic plant and sold its name rights to Delta. Delta now imports cribs from China under the Simmons brand.
Since all this news is happening after hours, we hope to have additional updates tomorrow. Stay tuned.
Update 6-21-06: Ragazzi has pulled down their web site. If you need to reach Ragazzi for parts or a warranty question, call 888-324-7886.
Posted: Mon - May 1, 2006 at 06:52 PM
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Published On: Feb 24, 2007 09:37 AM
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Published On: Feb 24, 2007 09:37 AM