“Most of the investors couldn’t tell you the difference
between a sofa and a loveseat.”
Tom Bleile, Investor in Norwalk Furniture
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| Photo by Norwalk Furniture |
This story starts out like so many we’ve read lately: a hometown company that’s been making a high-quality product for generations suddenly shuts down because of the bad economy. People lose jobs, their pride takes a hit, and the town loses much of its tax base. But it’s here—after the shutdown—where this story takes a twist.
Norwalk Furniture, of Norwalk, Ohio (population 17,012), has been making high-end sofas and chairs for more than 100 years. Over that time, the company grew to the point where it was running its own fleet of trucks and chain of retail stores. But in 2008, when the economy screeched to a halt, so did orders for custom-made furniture. In response, the bank cut the furniture maker’s credit line, and the company was forced to shut down. Things looked bleak.
But a handful of families in the small town of Norwalk couldn’t let the story end there. Twelve of them banded together, and in just four days they put together enough capital to buy the company. None of the investors were experienced in furniture making, but they figured that if they kept things simple and went back to doing what Norwalk Furniture did best—making great sofas and chairs—they might just make a go of it.
Three years later, they’re doing it. Norwalk Furniture employs about 150 workers and has zero bank debt. Its namesake hometown has seen its population grow, and other businesses are getting in on the action, too. A baking company a few miles down the road, inspired by the Norwalk Furniture example, recently decided to expand its operations.
The group of twelve investors who put their money on Norwalk Furniture might not have known much about the furniture business, but they sure knew how to take care of business . . . and how to take care of their hometown along with it.
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