ELKIN, N.C.—Arlie O. Foster, cofounder and retired senior executive of Salem Carpet Mills, died on April 23 at Wake Forest University Baptist Medical Center. He was 89.

In 1954, Foster founded Hafo Distributors in Winston-Salem, with his brother A.G. Foster and William Hailey. Originally named from the first two letters of the men’s last names, the company became Salem Carpet Mills in 1968, and over the next 25 years it grew to become the nation’s number two carpet manufacturer in residential sales, with more than 3,000 employees, annual sales of over $440 million and nine manufacturing plants throughout Georgia, South Carolina and Tennessee.

In 1972, Salem became a public company and, in 1992, it merged with Shaw Industries. From the day of its creation, Foster served on Salem’s board of directors, holding the titles of executive vice president and secretary, according to his daughter Janice Foster Jordan, the company’s first female officer.

Though he retired from the day-to-day operations on Jan. 1, 1986, he continued to serve the company in an advisory capacity and as a director until its merger with Shaw, she said. “My dad loved working directly with our customers and our employees, insisting on the highest level of customer service,” she added. “He had a natural flair for retail operations, as well, and during one period headed the company’s group of 22 retail stores. Dad treated all competitors with respect and was of the era that a man’s handshake really was his word.”

Foster’s death was preceded by his wife, Grace; a daughter; a sister and several brothers— including A.G. He is survived by two daughters, Janice F. Jordan, a former Salem Carpet vice president, and husband, Chris, and Joan F. Allan and husband, Peter; two sisters; five grandchildren, and eight great-grandchildren.