How did we miss this? As DWR continues forward on the road to reinvention amidst the toughest retail environment in its history, big changes have been afoot. First, they quietly delisted their common stock from NASDAQ last month after they failed to maintain a $1 minimum for their stock price and sought to cut costs. Then, this Monday, they completed a deal to raise $15m for a 91.33% ownership stake in the company. Here's the scoop...
• Ray Brunner, DWR CEO: "As we continue to look for savings that do not impact our people (staff reductions) or our clients (quality compromises) we are leaving no stone unturned. So, when we looked under the NASDAQ stone we saw expense with no real value to us." more at DWR Blog
• The Street Insider: "The decision to delist has been reached as part of the Company's overall strategy to conserve resources and improve cost-effectiveness as the benefits of maintaining a NASDAQ listing have declined." More at The Street Insider
• Businessweek: "Glenhill Special Opportunities Master Fund LLC, an affiliate of Glenhill Capital Management, LLC, subject to customary closing conditions, will invest $15 million of additional capital into the company in exchange for a 91.33% ownership stake." more at BusinessWeek
I don't feel anything for DWR. Their stuff is NOT within reach of normal people. And I wish they would stop calling themselves that.
view GreatFriend's profile
As much as I've moaned about DWR I'm sad they're in this jam. They've been an important presence on the scene.
Good luck DWR!
view Henrietta the Terrible's profile
15 million seems awfully low...
view Bridget212323's profile
$15m for that big of a share in the company clearly shows how overpriced and over valued the company considered itself. Crazy.
view cettelbrick's profile
Though I never actually purchased anything from these folks I still get their beautiful yearly catalogues and other costly promotional materials so I am not surprised they are suffering financially. It was just a matter of time before poor customer relations caught up with them. Perhaps DWR will learn a little humility now but I'm not holding my breath.
view Bo Placebo's profile
yes, 15m is extremely low. i've had a lot of good experiences with DWR and hope it's able to weather this bad economy. good luck DWR--i'm pulling for you!
view timmy jr.'s profile
I have to admit, when I first stumbled onto DWR, I just shrugged it off entirely, thinking, "Within reach? Within WHOSE reach!?"
I'm a schoolteacher with a master's degree who's been working for 23 years, and I live a happily slightly-lower-end-of-middle-class lifestyle. I could never pay the kind of prices DWR charges. Honestly, who makes enough money to buy that stuff? It's not anyone I've ever met. Do these people actually exist, or did they just buy the furniture with their lied-about, sub-prime mortgages and outrageous credit lines?
I happily yard sale, antique, and flea market; I eBay and Craigslist. After six years, my house is full of beloved and unique pieces, most of which cost me well under $100. I'd put my home up in a style contest against the homes of those who hire designers and buy at DWR.
My vintage oak school chairs, used as dining chairs, cost from $0 to $25; I got them curbside and at the flea market. They've got great lines... and any week now, they'll be painted up in some vibrant color to set off the oak table.
Over at DWR, we've got the "Egg" chair, whose price according to the website is $5,934.00 - $15,038.00. Let's take the first, low-end figure: it's months and months of mortgage payments for me and my friends. The high end? It's an entire year's rent or mortgage.
And if we go to the "Basics" section of the website - ostensibly put there to let DWR be within the budget of all! - we've got fun aluminum "Navy" chairs that look a lot like my free oak chairs... for $415 a piece.
The homes I love the most on the AT site are the ones where the not-rich homeowners have to be inventive and creative and make their spaces special with what they can afford. That's where true design and creativity show themselves.
So... reinvent yourself, DWR. The world where folks pretended they could spend $15,000 on a chair was a world of smoke and mirrors.
view Mary B C's profile
In my pc browser I keep a set of bookmarks in a folder labeled DOOR -- Design Out Of Reach.
DWR does need luck. It surely will not survive with the same product assortment it currently sells. I do hope that its only the more ridiculous items that are jettisoned -- whether they find champions in other places or not -- so that the more relevant and timeless items remain.
view kushkush's profile
To Mary B C,
I am in no way saying DWR is cheap, but have you ever heard of brands like Moroso, B&B Italia, Cappellini, or De La Espada? Yes, I think you could put together a wonderful house on a budget. Most pieces I have the DWR sells are vintage originals which I obtained for 80% less. But to think that DWR is the top of the line when it comes to pricing, DWR has brands that are the bread and butter of modernism, most have been around since for more than 50 years. Their falter is their bricks and mortar stores they have so many of in useless locations. They've spread themselves too thin. If they had remained an internet based company with several locations across the US, they wouldnt be in this mess. Look at Room & Board, not completely comparable, but they have less than 10 stores total and are considerably larger than DWR. DWR is the 7/11 of modern furniture. It was their greed that got them to where they are (60 stores , going public WAY too fast). Ray Brunner should be fired (even if he is, he'd get his huge payout- just look at their public financial information), but atleast if that would happen it might get them back on track. DOWN WITH RAY BRUNNER!
view mod-century's profile
if i hear the absolutely tired "design out of reach" joke one more time i am going on a shooting spree.
view twelveindustries's profile
Nothing more cliche and yet somehow depressing than a joking reference to mass murder. Let's leave the guns to the townhall participants--thanks.
view jen_g's profile
yeah, the design without of reach is retarded. anyone who knows the company knows Rob's vision wasn't affordability, but a accessibility. when the company launched it was impossible to get this furniture without going through an interior designer or architect and paying their costs ontop of the MSRP - not to mention the 6 month lead time. DWR meant "in stock and ready to ship"....which is something they aren't anymore either.
view mod-century's profile
"I am in no way saying DWR is cheap, but have you ever heard of brands like Moroso, B&B Italia, Cappellini, or De La Espada?"
Mod-century, honestly... no. I probably have seen their websites in my browsing for beautiful stuff, but I wouldn't even put a bookmark on a spot that makes DWR look like the choice of the blue-collar worker. :)
The existence of even more ridiculously expensive stores doesn't lessen the irony of DWR's name. It's just such a perfect illustration of the gigantic gap between the (poor?) majority of the population and the (rich) tiny minority that can support these kinds of stores - or maybe can't, in these times.
I'm sure you're right about the failings of the officers running the company, as well. And their huge pay-outs for bringing companies to bankruptcies is one more thing that ticks off the proletariat. Grrrrrr...
view Mary B C's profile
Design Within Reach? Who's reach!?! It's more like "Design Out Of Reach"
Just for you 'twelveindustries'. ;-)
Keep your groupings tight and don't forget to breathe.
view Emeryville's profile
DWR and the likes will be a history of the past. These companies make money by making deals with their likes to have price fixing so you can not find a good deal anymore around. About 3-5 yrs ago you could find places on line that made sense to buy an american designed classic chair likes Eames and the likes. Now - there is none of that, bcs they all go behind the scenes and tweek the prices. Eames and his peers are rolling in their graves to see how their affordable chairs are priced up compared to when they first went in the market. Sometimes they sold to Bloomingdales and were totally within reach of a middle class family. No more, bcs somehow in america and elsewhere design equates with being exclusive.
The sooner DWR goes, the better it is for the industry, the other places that sell similar stuff might come to their senses and get some agreement with manufacturers to have some sense in their pricing.
view Anusha73's profile
But do they really need six stores in Manhattan? I think the main problem aside from targeting a market few of us belong to, is that they opened way too many stores... Two or three in Manhattan would have been plenty... It is and has always been somewhat of a destination place, not really a strolling by so I will stop in and spend 10k kinda place.
I do like kushkush's DOOR viewpoint. I have dropped a couple of thousand over the years there (lamps, rugs), but I always feel as though my business wasn't good enough.
Perhaps they should stick to the online presence like the started out as.
view Devyn's profile
Jen-g, while we're at it, leave the townhall comments on the political blogs.
view Seaside's profile
As far as the rich, they weren't buying from DWR, they have people for that. The offerings from DWR is pretty much main stream. The middle class WAS buying from them, the middle class isn't spending right now.
How many times do you have to see an Eames Lounge before it gets boring. There are loads of different lounges chairs to choose from, Moroso, B&B Italia, Cappellini, Cassina........it goes on and on.
view SBMODERN's profile
Yes, but if you don't buy something as iconic as an Eames Lounger, people might just think your chair is from IKEA...and we wouldn't want that. ;)
view mod-century's profile
1) To use clothing as an analogy, DWR is Banana Republic to West Elm and CB2's The Gap, and Ikea's Old Navy. It ain't Gucci or Louis Vuitton. Retail contemporary furniture can get much, much more expensive. Spend an afternoon with the price tags at Armani Casa, B&B Italia, Ligne Roset, Minotti, Flexform, Porro, or Fendi Casa, and DWR will strike you as a screaming bargain.
2) As much as I wanted to like it, DWR has never been a favorite of mine. I have walked through the stores and thumbed through the catalogs many times but I have never come that close to purchasing anything. The look always veered towards cold, modern bachelor pad/MCM cliche. It lacked the warmth and creative flare shown by some of its (much) pricier european rivals, and it was too expensive to be considered a viable decorating compromise when there were much less expensive (and similar) contemporary pieces coming to market with increasing regularity from competitors like CB2 and West Elm. Those competitors didn't exist when DWR launched, and DWR did a terrible job of adapting to the threat they posed to its middle market positioning.
3) $15 million sounds like someone simply purchased the brand and logo. I suspect that they will probably close the stores, revamp the line, and return to their mail order roots just as Sharper Image did when they went out of business. Or maybe they will simply license the name to a company like Macy's who could do a line of contemporary, MCM inspired furniture using the brand as a label the same way Target uses the Mossimo brand in the clothing department.
view RichardinLA's profile
dwr is for people who want high-end modern furniture from italy where a sofa set would cost you $100k but can't afford that. so i guess in comparison $10k for a chair is within reach. not for me and given the fact that the company is barely valued more than $15mil, not for most people.
view niche's profile
relax, i sold all my guns on etsy (with matching crotcheted holders). my words are my only weapons now.
there is no price fixing going on. besides being illegal, it is also not even relevant. any company that sells products by herman miller, knoll, fritz hansen, etc. etc. etc. are all under contractural obligation to advertise prices that are dictated solely by the manufacturers that make the products. DWR and others are just middlemen for these manufacturers - selling the licensed pieces brings the retailer cachet, gives the customers the ability to purchase these items while not going through a designer, and the manufacturer gets the opportunity to move a lot more product.
view twelveindustries's profile
First off, $15,000,000? What happened? Selling ourselves a little short.
Second, I don't understand all of animosity towards Ray Brunner. I worked for DWR for a year (not the best experience but a valuable one) and during that time became well acquainted with Ray. He's a smart man who inherited a big mess from previous top execs. The man is trying to save a sinking ship with only a bucket.
It's unfortunate. Despite everyone's feelings, whether they be pro or anti DWR, that this economy is killing the Design Industry. DWR is another casualty.
view chairfetish1's profile
"The middle class WAS buying from them, the middle class isn't spending right now."
SBModern: That's no middle class I know. I'm struck deeply by the huge perception gap that exists here. And by the reality that many of the wealthier people in the country clearly never meet or talk to the truly middle class population. I am beginning to feel invisible. We are here! We are here! We are here!
Without revealing too much, I will admit that I make somewhere between $50K and $100K a year. A quick, easy, probably nonscientific Google search reveals that the mean household income in America in 2007 (pre-recession) was $50,740, and that the median income was $50,233. That should, technically, make me slighly-upper-middle class. Some of my friends and relatives make more than I do, and some make less. If you make $50,000, and only pay, say, 12% income taxes, you take home $44,000 per year, or $3,666 per month. Assume a mortgage of at least $1,200. Car payments. Child care. Food. There is no place in that monthly budget for a $5,000 couch or a $1,200 chair. Period.
If, indeed, the "middle class" was buying this stuff before the recession, I'd have to guess they were leveraging themselves to do so. Maybe, indeed, they were taking out home equity loans or sub-prime mortgages and then spending their free cash on a $8,000 sofa. But if that was the case, the spending had no basis in reality, and of course helped contribute the this giant mess we're all in. Middle-class families were pretending (and wishing, I think) to be upper-class, and they lost their homes because of it.
Now, there are families who bring in $250,000 or $400,000 and believe that they are middle class, but that's like a Bichon Frise calling himself a mutt because he doesn't like the elitist sound of "purebred." If you make six times what the average family makes, you are wealthy. Not wanting to see yourself that way doesn't change the math.
I begin to see that there's a sheltered group of upper-class people who speak only to each other, deal in business only with each other, and buy home design only from each other, and believe happily and with a rosy gaze that they are "middle class." Oh, my.
view Mary B C's profile
I don't quite get the animosity towards DWR. Surely, if there was a way to produce and market high-quality, original modern furniture much cheaper than what one could get through DWR, someone would do it (and no, mindlessly knocking off classic design in asian sweatshops doesn't count). I never bought any full-price items from them, but generally found them pleasant and efficient for the on-sale items I got. It's not their fault that over the last 10 years the $/euro exchange rate has swung by almost a factor of two, making the e.g. Vitra or Fritz Hansen pricing seem a bit loopy.
I would have liked to see more lesser-known designs from them, rather than the same Knoll/Vitra/Herman Miller stuff everyone else sells, but if they fold I think the US design scene will be poorer for it.
view particlebored's profile
I agree. For all their faults, they have done a lot of good. Their design events, their catalogs that feature interesting pieces and designer bios, and the accessibility of their studios (anyone can walk right in...try that at the Design Center if you're not a designer).
It's a store. A great resource for designers. Not everyone can afford it (simply a reality and by no means a right to whine about their prices).
view chairfetish1's profile
@mary b c--just because you don't know middle-class people who shop at dwr doesn't mean they don't exist. we shop at dwr and lots of our friends do. i can name about 12 people off hand but then we live down the street from dwr. You keep quoting the upper end such as a $8000 sofa. We bought our sofa from dwr & guess what, it was 1/4 that price. We bought our bed from dwr & it was comparable to room & board, crate & barrel, etc. sure they carry $3,000 lamps but they also carry very reasonable things & have sales all the time. my last purchase was a cubits cabinet for $50 & my friend scored a verner panton light for only $300 (originally $1600). every year, they send out $200 off coupons which all of us religiously look forward to & use. my friends & i haven't taken out extra loans & the majority of us are in the teaching (university) profession & are in fact very thrifty with our money. as a busy professional who unfortunately can't spend a lot of time decorating my space, dwr has been a godsend. i honestly think that for the value they are not that expensive. i'd rather spend $2000 on something that will last than throw away $900 on something not so well made. in my opinion, the only thing that beats drw in the boston/cambridge area are the antique markets & craigslist.
view timmy jr.'s profile
This doesn't surprise me in the least. There are three DWRs within walking distance of my apartment, selling the same stuff. About 2 years ago I was pricing a Neo 2-seater sofa for my mother. DWR had it in one color only. We ended up buying it through Unicahome (or was it HighBrowFurniture) where we got free shipping and no sales tax, not to mention our choice of fabrics and colors.
I have never understood why anyone would choose to purchase anything at DWR when the same goods could be had for less or equal price, tax-free and with low or no shipping cost, online. Unless, of course, money is no object.
The stores themselves are pretty, but they're all identical, and after a while, it's the SAME STUFF we've seen in every magazine layout for YEARS: the Nelson benches, Saarinen tulip tables, Eames chairs, etc. ZZzzzz.....
If you truly want "design within reach" I recommend Craiglist. That's where all the DWR stuff finds its second (and probably third) owners (just do a search under DWR -- one of THE most popular keywords I'm sure) at prices that are MUCH, MUCH cheaper (I bought an Eames Lounge Chair with Ottoman for $1,000 for example, with about 3 shallow scratches on the armest). On CL you'll realize immediately how much value this stuff loses after it's off the showroom floor. There's just too much of it out there, not to mention knock-offs galore. And it's tired.
The way I feel about DWR is the way I used to feel about Wallpaper Magazine. It's fun to wander (or flip) through for ideas, and that's about it.
view peter in chelsea's profile
Spend an afternoon with the price tags at Armani Casa, B&B Italia, Ligne Roset, Minotti, Flexform, Porro, or Fendi Casa, and DWR will strike you as a screaming bargain.
Yeah, but I've been to B&B Italia and Ligne Roset, and their stuff blows the dull, dated pieces DWR sells out of the water. Costs a fortune, but if you have a fortune it's arguably worth it. DWR is just a bad deal on tired pieces you can pick up on Craigslist for a fraction of the cost after their owners tire of having a cliche in their living room (or go broke trying to live far beyond their means).
view sunspot42's profile
I've never had anything but good experiences at my local DWR. And even tho the NY stores were a little snotty I will be very sad if they go.
Mary BC- I am a graduate from art school, I work in retail and my salary is less that $50k/ year. And I shop at DWR and similar stores. I don't think they're exorbitantly expensive (with some exceptions) - I think most people have lost touch with how much real quality costs.
I believe that it is cheaper in the long run to get good quality, well made items that will last me a very long time rather than cycle through Ikea/WestElm/CB2 every 6 months. Sure, you need to save up a bit - but little by little you get good stuff. Now I've got a great couch!, a fabulous daybed for the guest room, some wonderful end tables, and great Nelson clock. (birthday splurge)
Next thing will be to get a good bed! And it's okay to fill in the gaps with Ikea...but Ikea shouldn't be a way of life for grownups.
view Modfan's profile
and to all the "Modernism is so tired and cliche" people:
Modernism has been around for 100 years. It will outlive all of your of-the-moment trends.
view Modfan's profile