Costa Blanca pulling out of U.S. market
By Gary Evans -- Furniture Today, May 26, 2008
High Point — Spanish upholstery fabric source Costa Blanca Textiles said it is pulling out of the U.S. market, citing the weakened U.S. dollar.
A subsidiary of a large European textile conglomerate, Costa Blanca has sold to U.S. customers since 1999.
"We've had a very good run," said Todd Bowles, vice president of operations. "We have a very loyal customer base and we've carved out a nice niche for ourselves as a producer of luxurious plains and base cloths. We have also done a good job with our suedes."
But in recent years, the weakness of the dollar against the euro has put pressure on margins, Bowles said. He said the company has "held prices for as long as we could in hopes the dollar would rebound but we just can't continue to hold prices. If we really put the true mark on our fabrics, they would all jump at least 30% in price and that's too much to ask our customer to take on."
Separately, the company announced it had sold the U.S. rights to market and distribute its Unisuede brand of sueded microfiber to JLA Home Fabrics. The purchase price was not disclosed.
JLA will stock the line, which is produced in China, in its 110,000-square-foot warehouse in Reidsville, N.C. George Kerr, president of JLA, said the company "will offer its customers the same high standards they have come to expect from Costa Blanca Textiles."
Bowles said Costa Blanca was turning over inventory and its source in China to JLA.
Bowles said he is pursuing other employment opportunities.
