Eller Enterprises to help The Coastal Group grow

Eller Enterprises will provide growth capital to The Coastal Group, a gift and home decor marketing agency, through a convertible debt deal.

The Coastal Group President David Weiss said Eller Enterprises President Randy Eller can convert the money he invested into an equity position at his discretion and become a partner in the Coastal Group with Weiss and his brother Todd Weiss. While there is no estimated time of when that will happen, Eller said terms of the deal allow it any time within the next three years.

The Coastal Group also established a board of directors including the Weiss brothers and Eller as lead director. Two additional directors will be named, probably before the end of the year, Weiss and Eller said.

"We hired Randy when he first started Eller Enterprises, after he left CBK, to be a consultant for us and really help us grow our business and position our company better," Weiss said. "Randy brings us and his other clients amazing business savvy and unparalleled industry knowledge."

His own experience leading CBK showed how a well-executed catalog, advertising, marketing and public relations plan can contribute to a company's growth, Eller said. "The industry is changing very rapidly at this point and the supply chain side is changing quickly, with what all the vendors in China are doing to go direct to big box stores," he said. "No one can tell exactly how that's going to play out, but I know one thing for certain: As long as there is product being made that needs to be sold, there's going to be a need for marketing, catalogs and PR. So I see the media end of this industry being a real safe haven for the next five to 10 years."

Founded in 1991, The Coastal Group is a full-service marketing agency and catalog producer based in New York City. Gift and home furnishings manufacturers, real estate developers, jewelry companies and consumer food brands are among The Coastal Group's largest clients. Weiss said he expects The Coastal Group's primary focus to continue to be home furnishings, lighting, home decor and gift.

Randy Eller