by Letter to dealers suggests a potential future partnership with key supplier MotoMotion Furniture
WINNIPEG, Manitoba — A letter upholstery manufacturer Palliser Furniture issued to dealers this week indicated that it is involved in “close and constructive” discussions regarding a potential future partnership with components supplier and motion upholstery resource MotoMotion Furniture that could further stabilize Palliser’s operations moving forward.
While the letter offered few specifics regarding this partnership, Palliser Holdings President and CEO Peter Tielmann noted that any arrangements “will be carried out in compliance with applicable laws and regulations in the relevant jurisdictions and appropriate announcements will be made in due course.”
Tielmann told dealers Palliser looks forward to meeting with them at this week’s High Point Market where it will show them an expanded mix of product. He also said the company will share plans for its partnership with MotoMotion and provide further clarity on the timeline to restore consistent and timely deliveries.
Tielmann was not immediately available for further comment.
However in the letter, he said that over the past year the company has experienced liquidity challenges that have affected the timing of supplier payments, adding that this also has resulted in disruptions to raw material flows to its factories while also delaying orders.
“We fully recognize the impact this has had on our retail partners, and we sincerely apologize for the inconvenience and disruption caused,” he wrote.
The letter went on to note that the company has taken immediate action to address these challenges and that with the support of longtime supplier MotoMotion, it is stabilizing supplier relationships and “accelerating the flow of materials back into our factories. Material orders are being placed to support both backlog fulfillment and to strengthen inventory depth across key programs.”
Tielmann added that the company’s Mexico manufacturing facilities “are well positioned, and with improved material availability, we are confident in our ability to deliver with greater reliability going forward. Our shared priority is to improve lead times, enhance reliability and ensure we can support your sales teams with greater consistency.”
A closer partnership, whether through a merger or ownership stake from MotoMotion, could benefit both companies.
For Palliser, it could further secure its more than 10-year relationship with and the supply of materials from MotoMotion. It also could tap into product innovations and technologies that MotoMotion has built into its own motion upholstery line.
In turn, MotoMotion can benefit from Palliser’s strengths as a North American producer of custom stationary and motion upholstery. It can also tap into Palliser’s retail customer base including dedicated galleries where the manufacturer showcases its mix of custom options including fabric and leather covers.
At market Palliser shows in space 400 of 220 Elm.
