Markor Acquires Schnadig Furniture; Names Jeff Young CEO, Chairman

January 7, 2009

Markor International Furniture Co., Ltd., has acquired upholstery and case goods producer Schnadig Corp. The acquisition was finalized Monday.

Long-time Schnadig president and chief executive officer Donald Belgrad has been named chairman emeritus, and industry veteran Jeff Young has been named chairman and chief executive officer of the company now known as Schnadig International Corp.

Markor is the exclusive manufacturing source for California-based A.R.T. Furniture.

In a release, the company said the transaction demonstrates Markor's commitment to serving its U.S. and international customers.

“Markor believes that by bringing together its manufacturing efficiencies and Schnadig’s established marketing channels and brands, we will offer our customers well-made products, enhanced service, distinctive design and excellent value.” said Richard Feng, chairman and CEO of Markor Group.

Prior to joining the company, Young was most recently the chief executive officer of Furniture Brands International's HDM division, which included Henredon, Drexel Heritage and Maitland-Smith. He had also been the chief executive of Lexington Furniture Inds.

Belgrad said Markor has been a manufacturing partner for Schnadig for many years.

“I am excited about our two companies combining its respective strengths to become a leading retail supplier,” he said. “We shared similar values, and I am confident that Markor, under Mr. Feng’s leadership, will preserve Schnadig’s heritage and expand the strength of its brand.”

In November, the Markor board of directors announced that the company was looking for acquisitions in the United States. In addition to A.R.T., Markor is a major supplier to Ethan Allen.

Young said he is excited about his new opportunity.