By Janet Herlihy

COLTS NECK, NJ -- From an historical location  that once served the sport of kings, Due Process Stable Trading Co., is prospering as a provider of furnishings also fit for royalty.
   
Just over three years ago, founding partners John Ferolito and Peter Gerhard set out to establish an elaborate home furnishings collection that combines high class, fashion and quality.

The exclusive collection includes fine antique and reproduction furniture, as well as Oriental hand made rugs and accessories. The products are imported from all over the world, as well as from leading manufacturers in the United States.
   
The rug category makes up approximately 25% of
the business, according to David Grasse, president of
the company.

So far in 2007, the rug business is "great,€VbCrLf stated
Grasse. "It has taken this long to develop an
inventory and now we have adequate stock."

There is 100,000 sq. ft. of showroom space and storage in the barns that once were home to thoroughbred racehorses,  as well as additional warehouse space in
Branchburg, NJ.

Since the company started, there have been some
surprises. "Initially, I thought more of our business
would be on the to-the-trade side, but the volume is in
wholesale and that is growing,€VbCrLf he said.

 "Wholesale, we can sell thousands of units versus to-the -trade showrooms where we will sell four or five. We will
continue to operate the showrooms because that is
Ferolito's interest and it gives the company
credibility in interior fashion.€VbCrLf

A growing reputation as a fashion leader is winning
Due Process sales to high-end furnishing and specialty
retailers as well as a healthy business with
non-traditional partners, such as furniture and fabric
manufacturers.

The company develops rug collections for home furnishings companies that are then private labeled. "About 85% of the business is wholesale to high end specialty stores and our private label clients. The other 15%  is direct to the trade in the showrooms, which are available by appointment only,€VbCrLf Grasse explained.

Retailers can see Due Process at High Point and
AmericasMart, Atlanta, in showrooms shared with the
UK-based Arthur Brett and Kindel Furniture of Grand
Rapids, MI.

Quality is the hallmark of all Due Process products,
according to Grasse. The rug line is all hand-knotted,
 in high quality wools and/or silk constructions. Styles run the full gamut from traditional, through
transitional, to contemporary.

""We would rather sell fewer units at the high-end than many at the low-end,€VbCrLf said Grasse. "The most popular retail price point is $2,500 in a 5x8.€VbCrLf

Colors are constantly changing but there is no single
trend, according to Grasse. "Color depends
on the designers because they want to set themselves
apart with a particular color story. "

For fashion and color direction, Due Process works with such international consultants as Peclers Paris and London-based  Jenkins UK.

For the future, Due Process will continue to diversify
(it is now venturing into apparel) and to focus on the
luxury market.

 "Fewer companies are focusing on the high-end and a void is developing,€VbCrLf noted Grasse. "As the economy changes, the high-end isn't as volatile and doesn't fluctuate as much.€VbCrLf

Greg Bereza, executive vice president, who is also an
equity partner, handles all operations. Mike Massman,
vice president of national rug sales, heads the rug
division.

The original Due Process Stables were a thoroughbred
racehorse facility and golf course in Colts Neck, NJ,
boasting stables originally built in the 1800s.

When the property became available, John Ferolito and Peter Gerhard purchased it with an eye to converting the
barns into high-end home furnishings showrooms.

The Due Process grounds are also home to an exclusive golf club.

04.19.07