This is huge new intel for VYST as I have a few guesses for why they are liquidating their entire inventory to prepare to remodel the store and do a "merchandise reset." Something major is coming as the CEO, Steve Rotman, made it very clear that this move should no way be interpreted as a going out of a business sale as they have confirmed something much bigger and better than what they were doing from selling furniture. Remember, Rotmans Furniture was generating about $30 million in annual revenue with about 150 employees. For them to move on from that, leads me to think that something much much bigger is coming:
Despite Rotmans being closed two-and-a-half months because of the coronavirus pandemic, Steven Rotman, president and CEO of Rotmans, insists that in no way should this liquidation sale be interpreted as a going out of a business sale.
In fact, the massive sale is Rotmans forging ahead into the future.
Rotmans began as a family business in the 1950s as a furniture and carpet concession in a 10,000-square-foot space on Southbridge Street.
Today, Rotmans has about $30 million in annual revenue, 150 employees and a sprawling 200,000-square-foot carpet and furniture showroom off Interstate 290.
In 2019, Rotmans became a publicly traded company when Vystar Corp. acquired a majority interest in the company. In addition to being the CEO of Rotmans, Rotman is also the CEO of Vystar.
Interested in what he calls “technology for the future,” Rotman said he looked into three areas: Vytex, a natural rubber latex foam that will potentially replace plastic, in which Vystar has the exclusive U.S. contract; the purchase of the Canadian-based UV Flue Technologies for its air purifying products (branded RxAir) that eliminates 99.7% of all viruses and bacteria; and the purchase of the California-based Fluid Energy Conversion to increase pathogen killing efficiency, reduce size and cost of Vystar’s RxAir air purifiers.
“So I have those three companies as part of Vystar, plus the fourth company, which is Rotmans,” Rotman said. “And Rotmans is the organization that allows everything to happen. So, Rotmans has, sort of, changed from strictly a home furnishing company into really the home-base for the Vystar company.”
Rotman said he’s taking the furniture juggernaut and making it more efficient, with more in-stock merchandise (than special order) all with easy delivery at a fairly reasonably cost, while being able to deliver further out and as far out as 170 miles from the store.
“It cost me, in a sense, four to five percent to make normal deliveries. It cost me a few more percent to go further out. But it’s still very reasonable and it allows me to control the delivery system,” Rotman said. “So I can cover Maine, New Hampshire, Vermont, Mass., Connecticut and Rhode Island, and upper state New York with no issues. And I can deliver within a short period of time.”
With all the different divisions, Rotman said his feeling was to shrink the furniture business from 200,000 square feet to 130,000 square feet and take certain sections of the store and work with other companies that can cash in with from the foot traffic.
“Our feeling was we have to make a change. So the question is how do I remodel? How do I make the changes?” Rotman said. “So I said, ‘Look, we have to sell what we have and, basically, create some new excitement and new areas and new inventory.'”
Rotmans’ total liquidation sale begins Thursday at 725 Southbridge St. and includes more than $20 million of furniture, area rugs and mattresses that will be "deeply discounted" to make room for a remodeling effort and all new and upgraded product offerings in the future.
Rotman said the deep discounts are going to range from 35 to 70% off.
The liquidation sale will be open to the public during regular store hours, and by-appointment shopping is available upon request.
After all inventory is sold, Rotmans will close for an expected two to three weeks to remodel that will ultimately create the new showroom experience with a more curated selection of products that appeal to the modern consumer and lifestyle.
