BIRNBACH ERA BEGINS AT CAPEL

Eric Birnbach, new Capel president

 

By Lissa Wyman

HIGH POINT, NC  - Eric Birnbach has been on the job as president of Capel, Inc. for only two weeks, so he is understandably reluctant to make sweeping statements about the company's future.

However, his background in furniture, upholstery and home textiles gives him a springboard to dive right into the 88 year-old  company's multi-faceted  rug business.

Capel, based in Troy, NC, is best known as a manufacturer of braided rugs. The company is also a major importer of both hand made and machine made rugs. In recent years, Capel has also made an aggressive move into retailing.

"I can't pretend to be a rug maven. But I do have a long history and a commitment to home furnishings. I hope to use that expertise as Capel's business goes forward,€VbCrLf he said.

For the near term, Birnbach said the company's challenge is to continue on an upward growth pattern.  " Our goal is to create and sustain a competitive advantage while providing exemplary service and maintaining a financially stable platform,€VbCrLf  Birnbach said.

Capel's principal channels of distribution are  furniture stores, catalogs and the fres-standing Capel Rugs stores.  Birnbach said the company has a growing commitment to retailing, with the long-range goal of entering individual markets and dominating the rug business with large stores dedicated solely to Capel products.

Currently there are approximately eight Capel-owned stores and 11 Capel-dedicated stores. Partners in the dedicated stores have exclusive rights to Capel products in their areas. The most recent partnership is a 12,000 sq. ft. store in Lexington, KY.

Will Capel branch  into other product categories to help fill those stores? It's not part of the company's current plan, noted Birnbach. " We have a commitment to the rug industry. I have no urge  to dilute our efforts,€VbCrLf he said.

Birnbach's appointment marks the first time that a non-Capel family member has held the post of president . Former executive officers  Jesse, Leon and Arron Capel are now retiring from the day to day operations of the business while remaining on the board of directors.  "Although I've been on the job for only two weeks, Jesse, Leon and Capel have left the building,€VbCrLf said Birnbach. "They have opened offices nearby and are available in an advisory capacity.€VbCrLf

The third generation of Capel management, or G3 as they are known, is also active in the business. Mary Clara, Cameron, Richard and Arron (Ron) all hold positions in the company.

Birnbach joined Capel via an independent recruiter. He was most recently head of Beacon Looms, a textiles firm specializing in window and top-of-the-bed. Earlier, he was president of Spectrum fabrics and held several sales, buying and merchandising posts at Rowe Furniture.

Lissa Wyman, editor and publisher of Rugnews.com with  Eric Birnbach, new president of Capel, left, and Leon Capel, retiring president.

Birnbach won out over 500 applicants in a five-month search, noted Leon Capel. "Birnbach is well qualified in the areas of textiles, furniture and retailing, which fills three important gaps. The fact that he does not have experience in rugs is not as important as the other qualities he brings to the job. Most importantly, he is a leader and has a track record as a mentor and teacher.He has experience working in family-owned businesses and that is extremely important.€VbCrLf

An all-industry  party was held Thursday evening, Oct. 20 in Capel's Market Square showroom to honor outgoing board members Jesse, Leon and Arron Capel.

10.21.05