$1 Billion In Debt.......WHOA

The apparent Purchaser of Simmons and Serta Mattress Manufactures, Ares Capital will inherit roughly $1 Billion in debt. Ares Capital expects this debt to be paid off in a matter of a few years, via Chapter 11 bankruptcy laws that stipulate they don't have to pay off several hundred million of said debt. There are plenty of critiques claiming their forecast is way to soft.

Cargo Ships and the market of furniture.

With the recent hijackings of merchant cargo vessels around the world one has to ask: what impact if any do these crimes have on the economy and the very goods the vessels transport? While A Ball of Wax may not be a financial institution, our knowledge of our own industry is quite sound. Most furniture today is shipped from abroad aboard such cargo vessels as the ones recently hijacked. Although the majority of these ships come through shipping lanes from China some do in fact come from the east around the horn of Africa. Although the product itself is worthless to the pirates, it and the ship hold significant value with the manufacturer and freight company and can therefore be ransomed. As hijackings increase insurance will and has increased as well. Freight companies are forced to charge more per container to make up for the added costs. The furniture manufacturers would normally charge more for their furniture but here is where timing comes into play. Due to the current economic situation the manufacturers know that they can not charge more and still sell product. Most manufacturers are already losing money and are therefore being hit on both fronts. More than likely from what we can tell, the manufacturer's that currently produce furniture in the middle east will stop.

HON lays off 80 Employees.

Roughly 80 Employees of the HON furniture facility have been laid off. HON relates the lay offs to the current economic downturn. No news as of yet if more layoffs are scheduled.

New Pilot Chair.

Alu Design and Services AS has released a new Ergonomic Pilot chair designed specifically for ship-bridge work. With recent orders showing a world wide interest the company plans on marketing the chair on a world wide basis. The chair is designed for comfort and longevity and based on the current reception of the chairs design we don't expect it to disappear any time soon.

Outdoor Furniture Banned.

In response to superbowl riots, Pittsburgh has passed legislation to ban Indoor furniture placed outside. Any "upholstered" furniture, defined as any furniture containing padding for sitting or reclining will warrant a fine between $200 and $500 dollars.

International Furniture Show.....Flooded.

The Malaysian international furniture fair located in Kuala Lumpur was shut down due to a flash flood of a local river. Roughly 100,000 square feet of the exhibition hall was flooded, shutting down a number of exhibitors. The flash Flood quickly passed throught the area and power was restored sometime thereafter. No one from the fair was injured in the flooding.

Thieves Steal Furniture.

Three thieves have been arrested on charges of possessing stolen merchandise in London. The merchandise.......furniture. That's right, FURNITURE. Gold, Silver, Platinum, and Jewels apparently weren't worth enough to try and steal so the A-team of London's bandits decided to pull a fast one on the police and steal a trucks worth of furniture. Total score....a few thousand dollars. The thieves were caught when the police searched their home on suspicion of the crime. Yes, the crooks thought it was a good idea to use the furniture in their own home instead of selling it. Genius.

Check out the whole story HERE.