by Purchase will allow company to produce custom upholstery for its wholesale and retail brands, while also continuing to produce the Bauhaus line
SALTILLO, Miss. – The RW Collective, a whole-home furniture importer based in Rockford, Alabama, has purchased the assets of upholstery manufacturer Bauhaus Furniture Group, a move that the company said “strengthens its domestic production capabilities and accelerates its vertical integration.”
The acquisition comes less than a week after Bauhaus announced to its employees that it was closing its doors on Monday, March 10. Company President Daniel Lim said the closing was related to challenges ranging from a conversion to its new software system to the uncertainty of government tariffs and the continued soft business environment.
When it heard of the closing, The RW Collective immediately responded with an interest in acquiring the manufacturer, which produces its upholstery line in a 200,000-square-foot plant in Saltillo that employees roughly 75 workers.
As the deal has been completed, those employees are now part of The RW Collective team.
Officials did not reveal a purchase price for the company. However, officials said that for many years, the company had been looking for an opportunity for an expanded domestic manufacturing footprint that complements its case goods factory in Indonesia.
Officials said that The RW Collective, which also is a sister company to retailers Stock & Trade Design Co. and Jess & Gray, has already partnered with Bauhaus on the retail and the wholesale side of the business.
Thus, the purchase made sense as it will allow it to expand its product line, reduce lead times and expand its customization to its wide customer base. The U.S. plant also will allow it to produce more categories including upholstered beds and dining chairs, for example.
“This is an exciting milestone for The RW Collective,” said CEO Michael Carey. “Bringing manufacturing back to the U.S. has been a long-term goal, and Bauhaus presented the perfect opportunity. Their skilled craftsmanship, quality production and logistics expertise will have an immediate positive impact on our ability to serve customers.”
The company said that it also remains committed to producing the Bauhaus Furniture upholstery line “while working diligently to strengthen its relationships with both current customers and vendors. This dedication to excellence will ensure that the brand continues to build trust and deliver superior products.”
Bauhaus was formed in Northeast Mississippi in 1989 and over the years has produced a line of upholstery including sofas, sectionals and occasional chairs in a wide range of styles, from transitional to casual to contemporary. These are offered in hundreds of fabric options that can ship in four weeks or less for custom orders.
“This acquisition strengthens our position in the industry while reinforcing our commitment to domestic manufacturing,” said RW Collective COO Rebekah Osborn. “It allows us to build on an already strong foundation and provide a better, faster and more flexible supply chain for our partners.”
