Johns forms new company, acquires Park Designs

Bungalow, a two-year-old importer of rugs and home accents, and Park Designs, a 22-year-old importer of textiles, gifts and home accents, merged in February to form Scout Limited.

The creation of Scout is the brainchild of industry veteran Ben Johns, who earlier co-founded The Bacova Guild and Whereoware. Johns will be CEO of Scout, and daily operations of the two companies will remain separate.

"I've had this idea since Bacova days as that company left the specialty retailer for the big stores," Johns said. "We can be more creative with product for these stores."

Park Designs, a well-established company based in Goldsboro, N.C., was the perfect choice to be the foundation of Scout, Johns said. "Park was the first company, starting in 2003, and the last company I talked to," he said.

Johns said Park Designs possessed the traits he was seeking: a well-entrenched import company sourcing primarily from India and China, not reliant on big box orders, with specialty stores and catalogs as customers and with back-office systems in place.

Putting Bungalow, a company Johns founded two years ago, into the mix simply is combining the steps of acquiring a foundation company and its first acquisition at the same time, he said. He also said he expects Scout will continue to look at other possible acquisitions, either older brands that need refocusing or newer companies that lack resources or financing.

"As the competitive landscape of the industry intensifies, this new structure allows us to quickly adapt and aggressively meet changing market conditions," Johns said. "We have assembled all the core resources to explore and extend our best of class business practices to complementary gift businesses and build a business model for the future. It all starts with the alignment of these two very talented management teams."

Rob Shriver, an 18-year industry veteran, will continue as president of Bungalow, a fashion-forward lifestyle designer, importer and distributor of flooring, tabletop, home accents and bags.

Marty Metzler was named COO of Scout Limited and president of Park Designs. Tom Bell, who co-founded Park Designs in 1984 with his wife Cissy, will serve as an advisor focused on strategic development.

Key managers for both companies will continue to serve in their current capacities, according to a company announcement.

"This alliance provides the leadership and the means for Park to grow to the next level," said Tom Bell, chairman of Park Designs. "I am delighted to be handing the reigns over to Ben, Marty and my sons, Miller and Thomas, enabling me to research and evaluate other opportunities we can add to this exciting new venture."

Park Designs will continue to operate in North Carolina and Bungalow will maintain operation in Millsboro, Va.