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March 07, 1997 - Image 65

Resource type:
Text
Publication:
The Detroit Jewish News, 1997-03-07

Disclaimer: Computer generated plain text may have errors. Read more about this.

Loose Ends

of employees who accepted the
offer.
The layoffs do not affect New
York Carpet World retail sales
staff or branch managers.
Among the employees relocat-
ing to Dalton is Ken Petke of the
New York Carpet World Division.
He was reached at his new office
in Georgia but was unable to pro-
vide a specific figure of those who
chose to transfer to the parent
company. Mr. Petke said the
number includes workers in "var-
ious functions and not just key
executives."
The staffers remaining at the
Southfield headquarters include
Jim Telfer, New York Carpet
World's president. Mr. Telfer also
did not return telephone mes-
sages.
The company's former presi-
dent, Mr. Berlin, will remain in
Southfield, said Mr. Shaw, al-
though it was unclear what his
title would be. "He will be work-
ing with us on a corporate level,"
said Mr. Shaw, but he would not
state if that would be as a con-
sultant or employee. Mr. Petke
confirmed there was speculation
that, at the time of the purchase
last May, Mr. Berlin had said he
would remain with the company
for three years.
"Severance packages were of-
fered to those who chose not to
stay with the company," said Mr.
Shaw. These packages include
compensation for unused vaca-
tion time and other benefits ac-
crued. The company assisted the
of the acquired stores," said Mr. displaced workers with return-
Shaw.
ing to the job market by provid-
"Every person was offered an ing assistance in creating
alternative position within the resumes.
company," said Mr. Shaw, whose
The layoffs were part of an "or-
uncle, Robert E. Shaw, is chair- derly transition" said Mr. Shaw,
man and CEO of Shaw Indus- and were not handled as a "Sat-
tries.
urday night massacre" with lit-
But at least one displaced ex- tle advance notice.
ecutive, who did not want his
Both Mr. Shaw and Mr. Petke
name used, said the offer en- denied that the Russian emi-
tailed becoming a carpet sales- grants were being displaced in
man at one of the retail stores. the "administrative centraliza-
The individual declined to accept tion." Both men believed most of
the job. No figure was available the former Soviet citizens were
from Mr. Shaw on the number
remaining with the compa-
ny although this could not
be independently confirmed.
Shaw Industries is the
world's largest carpet re-
tailer, with annual sales in
the $2.9 billion range.
At the time of its pur-
chase, New York Carpet
World was the largest car-
pet retailer, with nearly 200
stores in 17 states and $400-
$450 milion in sales.

The parent company of New York Carpet World
is slashing staff at the Southfield headquarters.

>

ALAN ABRAMS

SPECIAL TO THE JEWISH NEWS

PHOTOS BY DANIEL LIPPITT

ew York Carpet World is laying
off "close to" 150 management
employees at its Southfield head-
quarters over the next six weeks.
Twenty of the company's
staffers have accepted relocation
to the carpet retailer's parent
firm in Dalton, Ga.
At least 20 more will remain
at the slimmed-down version of
New York Carpet World's head-
quarters in Southfield, said
Julius Shaw, vice president of
Shaw Industries, the mammoth
carpet manufacturer which pur-
chased New York Carpet World
last May.
Reports of the impending lay-
offs began to surface in mid-Feb-
ruary from displaced employees
who declined to give their
names. Telephone messages left
for Marvin Berlin, former pres-
ident and co-owner of New York
Carpet World, were not re-
turned.
Most of the displaced workers
are Jewish, and a disproportion-
ate number are Russian immi-

grants who were hired by Mr.
Berlin and former co-owner Irv-
ing Nusbaum.
Those laid off were mainly in
administrative or merchandising
positions, said Mr. Shaw, and in-
cluded workers in accounting,
customer relations, inventory
control and credit collections.
Shaw Industries recently pur-
chased several other carpet re-
tailers across the country and is
eliminating duplication in those
divisions as well.
"We are consolidating a lot of
administrative functions for all

Above: Mod Firsht of New York
Carpet World goes over a sale
with customer Bill Hartwell,
while Brandon and John
Hartwell play.

Right: The New York Carpet
World store and headquarters
on Eight Mile near Telegraph.

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