Restoration Hardware announces reorganization
Carole Sloan -- Home Accents Today, August 16, 2012
CORTE MADERA, Calif. - Restoration Hardware announced a reorganization in which a new company called Hierarchy will be created to develop new lines of business, including apparel, accessories, footwear and jewelry. Under the new structure, Restoration Hardware will maintain all existing home businesses and will have the exclusive right to acquire each of the new businesses when they become profitable.
Gary Friedman, the current chairman and co-CEO of Restoration Hardware, will become the founder, chairman, and CEO of Hierarchy. Friedman will control Hierarchy, with Restoration Hardware owning a minority stake. He will continue to be involved with Restoration Hardware in an exclusive advisory role, serving as creator and curator with a focus on strategy, creative, and design direction. Friedman will remain the largest individual shareholder of Restoration Hardware and will serve as a non-director advisor to the board in his role as chairman emeritus.
Carlos Alberini, co-CEO of Restoration Hardware, will become Restoration Hardware's sole CEO and will lead all major functions of the business.
Restoration Hardware is jointly controlled by Catterton Partners and Tower Three Partners. J. Michael Chu, a managing partner of Catterton Partners, will assume the role of chairman of the board of Restoration Hardware.
"Today's announcement supports our goal and belief that we can curate a lifestyle well beyond the four walls of the home," Friedman said. "It allows us to leverage our core capabilities to innovate, curate, and integrate new businesses and develop a brand that transcends typical models existing today. I am proud of the strong brand we have built, excited to pursue this new paradigm and partnership with Carlos, and passionate about imagining and creating a truly special business and brand."
Gary Friedman was appointed chairman and co-CEO of Restoration Hardware in June 2010 and has served as CEO since March 2001. Prior to joining the company, Friedman worked for William-Sonoma, Inc., where he served as president and chief operating officer from May 2000 to March 2001, as chief merchandising officer and president of retail stores from 1995 to 2000 and as executive vice president and president of the William-Sonoma and Pottery Barn brands from 1993 to 1995. Previously, Friedman spent eleven years with The Gap, Inc. in various management positions.
Carlos Alberini joined Restoration Hardware as co-CEO in June 2010 and has been a director since then. Prior to joining the company, he was president and chief operating officer of Guess, Inc., and has held executive management positions at Footstar, Inc., Melville Corporation, and The Bon Ton Stores, Inc.
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