Woodmark Halts Production of Custom Cabinets

by WOHe

Woodmark Halts Production of Custom
Cabinets

Winchester, VA American Woodmark Corp. has stopped production on
its line of custom cabinetry, and will focus instead on its core
product lines, the company announced.

The publicly-traded manufacturer, known primarily for its stock
cabinetry sold through home center chains and to home builders,
said it is making the move because the company’s future growth lies
in other forms of cabinetry.

The two brands affected by the decision are Knapp, offered
through kitchen and bath dealers and independent distributors, and
Coventry & Case, sold through 23 test market Home Depot
stores.

The Minnesota facility acquired with American Woodmark’s
purchase of Knapp will be dedicated to component manufacturing in
support of other products, the company said.

“Our future growth is not in custom cabinetry due to the high
operating costs required,” said president and CEO Jake Gosa. “The
company has significant opportunities to pursue revenue growth in
our core product lines, which offer higher margins than those
earned in the custom line,” Gosa added.

American Woodmark reported sales of some $327 million in fiscal
1999.

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