Victor Group to exit residential fabric market
Home Accents Today Staff -- Home Accents Today, October 11, 2013
Saint-Georges, Quebec - North American textile source Victor Group is pulling out of the residential fabric market, the company announced.
Company officials said the gradual phase-out of the residential business unit will take place over the next two quarters.
Victor Group entered the residential fabric market in 2007 when it acquired Quaker Fabrics. In 2009 it acquired Craftex, another residential brand.
"This was a difficult decision because we have invested much time, effort, resources and capital into this business unit," said Alain Duval, president and CEO of Victor Group. "But the reality is that this business is simply not sustainable in the future. This decision will allow us to focus on market segments that align more closely with our core competencies and long-term strategic plans."
Representatives said that several factors prevented significant growth in the category, saying that "the complexity of the product mix required to satisfy the market needs" put a strain on the company's operations and supply chain. Additionally, officials said that there is a shrinking customer base for more traditional fabrics in the mid-to-high price range.
Operations for the residential business unit will cease by the end of the first quarter of 2014, the company said.
The company has a service and warehouse facility in Grand Rapids, Mich., and a design studio in New York.