The purchase is projected to expand the corporation's annual sales volume to $4.5 billion and bring some 250 Flooring America and 100 GCO stores in the United States and 100 Carpet Max Canada locations under the Carpet Co-Op of America umbrella. All of the franchises were part of the estate of bankrupt Flooring America Inc. Under the new organizational structure, most of the existing management within the Flooring America and GCO organizations will remain on board, according to Alan Greenberg, co-CEO of Carpet Co-Op of America.
"With the Flooring America and GCO franchises added to our organization, we will be able to achieve much greater economies of scale and higher efficiency in key areas," said Howard Brodsky, co-CEO of Carpet Co-Op of America. "Among the most immediate benefits will be the ability to achieve significant reductions in distribution costs for all companies."
The purchase of the Flooring America and GCO franchises is part of Carpet Co-Op of America's aggressive strategy for continued growth. Previously, Carpet Co-Op of America acquired a majority interest in FloorExpo Inc., which serves the fast-growing residential builder's market.