CCA GLOBAL PARTNERS TO SELL
RUG DECOR RETAIL BUSINESS
TO GROUP OF FRANCHISEES
ST. LOUIS, MO -- CCA Global Partners, Inc. has entered into a definitive agreement to sell its Rug Decor division to a group led by three of its current Rug Decor franchisees.
The franchisees, Rick Ruby, Keith Rhodes, and Bob Ellis, currently own a total of six Rug Decor stores, and have been members of the Rug Decor Advisory Council since its inception in 2003.
"While the Rug Decor model continues to be a unique retail format for selling area rugs, with significant potential for success, the Rug Decor business is not central to CCA’s core flooring business or strategy," according to CCA Global, which is also the parent company of Carpet One.
"Rug Decor franchisees will be able to move forward and prosper more rapidly with an ownership group that will provide full-time attention and commitment to the business," according to CCA Global.
Scott Hayim, Rug Decor's current president, will be a member of the ownership group and will be CEO of Rug Decor Partners, LLC.
All existing franchise and license agreements will be transferred to Rug Decor Partners, along with the St. Louis corporate store. The six stores currently owned by the new group will be operated as corporate stores. They are located in Fort Myers, FL; Destin, FL; Mobile, AL; Gulfport, AL; Jacksonville, FL, and St. Augustine, FL, along with the existing corporate store in St. Louis.
Rug Decor Partners expects to continue existing vendor relationships and current corporate programs. Rug Decor Partners will remain headquartered in St. Louis.
“I am honored to be a partner with this experienced group of individuals who share a common vision and determination to take this business model to the next level, said Keith Rhodes, owner of stores in Gulfport, Mobile, and Destin, who commented on behalf of Rug Decor Partners.
"With hard and challenging times upon us, we know that with our great group of franchisees and acquired retail working knowledge, we can make Rug Decor the best area rug specialty model in the U.S. We have a lot of work to do, but we plan big things for the future.â€
CCA remains supportive of the Rug Decor franchisees and the new business owners. The owners of Rug Decor Partners and most of the franchisees have continuing relationships with CCA through other businesses.
CCA will continue to provide corporate support services to Rug Decor Partners for a period of time after the transaction closes, which is expected in July 2009.
CCA Global Partners acquired Rug Decor in 2000 and began franchising in June of 2004. Originally located in outlet malls, Rug Decor stores are now located primarily in Lifestyle centers and free-standing locations.
The 3,000 to 4,000 sq. ft. stores stock a broad variety of national brands as well as private-label merchandise. The in-store presentation includes customized fixtures and in-store graphics. Major vendors include Karastan, Nourison, Oriental Weavers Sphinx, Shaw, Momeni, Loloi, Safavieh, Kaleen, Kalaty, Delos, Dalyn and Concord Global.CCA Global Partners represents over 3,800 locations and has aggregate member sales of over $10 billion.
CCA Global is the parent company of Carpet One, Flooring America, Flooring Canada, International Design Guild, GCO Carpet Outlet, Pro Source and other buying co-operatives and franchise stores.