Frederick Cooper sells building, plans to relocate

Lighting vendor Frederick Cooper has sold its quarter-million-sq.-ft. Chicago factory for between $7 million and $9 million.

Fred Gershanov, vice president at Cooper and a part owner, said the company is searching for a smaller facility in the Chicago area, but will begin laying off some of its 120 workers at the end of March if a facility has not been found. At the beginning of March, no location had been found and layoffs had not begun although some employees had left for other jobs. Hopes were high a nearby location would be found later this month and layoffs would not be needed.

The 80-year-old company, which includes the Tyndale division, has produced high-end designs at its landmark Diversity Avenue address since 1970, but the surrounding area has become a draw for young professionals seeking refurbished condominiums.

Gershanov said the company also faces challenges because of the influx of imports in the marketplace. Many lamp parts are no longer made in the United States.

Gershanov said the company will show at the upcoming furniture market in High Point, N.C.

"We'll have the new introductions," he said. "We're going forward. We're shipping now and we'll keep on shipping."

Gershanov said the company must become more efficient to remain competitive. "One way of getting more efficient is to move to a one-story building instead of a four-story building," he said. "And I assume we may have to shift some production overseas to get more competitive. But for the most part, we will continue to manufacture here."

Vice President Suzanne Lauren said, "For manufacturing purposes, our building is rather antiquated, and while we're committed to producing our lamps domestically, we think it's important to streamline our operations in order to stay competitive in the marketplace."

Its focus will remain at the high end of the market. The year 2000 was its best with sales of about $20 million, Gershanov confirmed, but sales have declined steadily since then and were about $8 million last year.

Negotiating a severance pay package for the company's workers has begun with the local union. "That's our full workforce right now," he said. "If we stay in the Chicago area, I'm sure we'll be able to keep everybody."