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The views constantly catch your eye. The soundtrack is ever-changing. The welcome will make you smile! A history of royalty and radicalism Gigs, exhibitions, sports fixtures, drama performances and comedy nights In Bernard's year-old son, Leo, began learning the business.
After school, he worked in the factory, cutting fabric, and accompanied his father on visits to department stores on open buying days. He joined the company full-time in In Leo, still in his 20s, took over the business from his father and began to expand it.
Factories in Los Angeles and Chicago were opened. A third generation, in the form of Leo's sons, were soon learning the business as well. The eldest, Jeff Hollander, began helping out on weekends when he was just six, counting the change in the soft drink machines and sorting canceled checks. In he agreed to come to work for the family business at a salary less than half of what he made at the ad agency, but he correctly surmised that he had a greater chance for advancement working for his father.
The s brought major changes to the bedding industry, in particular bed pillows, which for years had been dominated by a dozen strong regional companies. A wave of consolidation swept through the industry, led by Pillowtex Corp.
When the shakeout was complete only four national manufacturers and a handful of weak regional companies remained. Hollander, by attending to its own business and choosing not to get caught up in the acquisition mania of this period, was one of the national survivors. But unlike some of its larger rivals it had not accumulated massive debt loads buying up the competition, a decision that over the course of the ensuing decade would lead to the demise of some.
One of the most important steps Hollander took in the s was to start manufacturing offshore in Asia, years before it became a standard approach by U. S manufacturers. Because it was becoming increasingly difficult to find companies in the United States to do detail work such as hand sewing and double-needle sewing, Hollander turned to China, establishing an early presence in a country that would be destined to play a major role in the future of textiles.
In and Hollander relocated its corporate headquarters from Newark, New Jersey, to Boca Raton, Florida, and later moved its product testing lab to the new location. At this stage, the company remained very much a private-label pillow company, well established with mass merchants such as Kmart, Wal-Mart, Sam's Wholesale, and Price Club.
Because there was less competition in the bedding industry in the wake of consolidation, both in terms of manufacturers and retailers, Hollander saw an opportunity to broaden its approach. No longer content to compete on price alone, the company now wanted to upgrade its styling and offer higher-end merchandise, thus becoming a total resource for its customers.
A line of natural-fill comforters was introduced in , followed by more expensive duvet covers. New synthetic fillings as well as feather and down were used in pillows to produce more upscale products to trade-up customers. Moreover, the company took advantage of its strong position in pillows to grow its mattress pad business.
The company's decorative bedding products also were upgraded with the hiring of a print stylist. One of the results of this effort was new sheets added to an expanded line of decorative bedding ensembles, in order to provide low-price point ensembles with a fashion look.
To support this aggressive approach to expanding its product lines, Hollander added its manufacturing capacity in down and feather processing by opening a California plant, and increased mattress pad quilting, and cutting and sewing operations. Because the pillow business was mature, the company decided that rather than slug it out with the competition in taking away market share it would attempt to grow its fashion bedding business.
To jumpstart this effort, Hollander acquired the assets of Countess York, a bed covering manufacturer that had been forced into Chapter 11 bankruptcy.
Hollander's business was now restructured into two divisions: basic bedding and decorative bedding, which consisted of the Countess York line of comforters, bedspreads, comforter sets, window coverings, sheets and pillow cases, as well as the Cornucopia Cache line of decorative pillows.
A new director of quality assurance was brought in to implement a formal quality control program that was rolled out to all of Hollander's manufacturing operations. The Countess York line failed to catch on with retailers, prompting Hollander to scrap the line and in February hire a respected designer, Terry Dikomeit, to start a line from scratch.
In a matter of just two months, Dikomeit designed and unveiled to buyers a line of fully coordinated ensembles that received favorable reviews from retailers.
Department stores continued to see Hollander as a mass-merchant vendor and shied away, but Dikomeit's reputation in the industry was strong enough to begin breaking down some resistance. Specialty stores, on the other hand, had no such reservations and embraced Hollander's new emphasis. But in keeping with its experience in mass merchandising, Hollander opted to hold the line on pricing, giving up the final markup points in favor of setting prices that would result in high volumes.
The Countess York label would later be revived as a mass-market line. In July Hollander became involved with juvenile bedding licensing by acquiring the rights to Hank Player, a sports apparel maker. Several months later the company hired a new vice-president of sales for fashion bedding, Tom McCaffrey, who had successfully headed The Bibb Co. Later in Hollander added licenses for the classic patchwork dolls Raggedy Ann and Andy, and Rocky and Bullwinkle, the s television cartoon characters that were about to be revived as a motion picture.
In addition, Hollander signed a licensing agreement with major league baseball to produce juvenile bedding designs for the mass merchants, warehouse clubs, off-price retailers, toy chains, catalogs, and baseball team stores. Hollander added Todd Parr and its "Silly City" concept as a juvenile bedding license in Although Raggedy Ann and Andy, and to a lesser extent Todd Parr and Hanker, did well, the Rocky and Bullwinkle license proved disappointing, and the baseball design did not live up to expectations.
Because the major licenses commanded high royalties and major guarantees by licensors, Hollander soured on the hit-or-miss nature of this segment.
Furthermore, the company's non-licensed bedding generated about 80 percent of its juvenile business. As a result, McCaffrey was let go and Hollander scaled back its juvenile licensing efforts.
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