Circuit Revisiting Majaps?
Hollywood, Fla. — Circuit City may be reconsidering its controversial decision to abandon the major appliance business three years ago. According to Bill Trawick, president and executive director of the NATM Buying Corp., Circuit City's president Phil Schoonover has been exploring white-goods opportunities with a major majap manufacturer. NATM dealers, in town for the buying group's annual meeting, said that Circuit may be seeking a virtual inventory and fulfillment model similar to the one that GE provides for The Home Depot. Neither Circuit City nor GE had responded to TWICE inquiries by press time.
Frigidaire Shipments Back On Track Following Blaze
Anville, Ky. — Electrolux/Frigidaire has resumed full production of its side-by-side refrigerators following a fire that completely destroyed a components factory, here, earlier this year.
No one was hurt in the blaze that gutted the facility, which produced icemakers, ice dispensers and control units for the majap maker. According to a Frigidaire spokesman, the company was able to make do with alternate production during the five weeks before full production resumed on the refrigeration line. “Our inventory was stretched, but we took care of things,” he said. “What could have been a bad situation was circumvented.”
BSH Cuts All Ties To HADCO
Huntington Beach, Calif. — BSH Home Appliances has formally ended its relationship with HADCO, the company's Southeastern U.S. distributor, and will now serve most of that market directly without appointing any distributor in the region.
The move follows an agreement struck between the two parties last year, in which BSH acquired HADCO's Northeastern U.S. operations and gained the right to direct-sell within the Southeast. The agreement also gave BSH permission to terminate its partnership with HADCO upon notice any time thereafter.
“We are very excited over the great enthusiasm that dealers in the Southeast have shown for BSH and its products,” said BSH's president/CEO Franz Bosshard. “Our entry into the market has been very successful thus far.”
In anticipation the change, BSH established new offices, warehousing and shipping infrastructure in the Southeast, and has hired new employees to staff it and support local dealers. The company now sells direct to all of the Northeast and Southeast territories along the Atlantic Coast with the exception of Florida, where BSH is served by its distributor ARD.
Bosshard stressed that the move is unrelated to, and does not affect, any other BSH distributor.