Article Number: 3064
Four months later, life after Hoboken Floors - Allstate Flooring, the stage for Joel Lefkowitz to reinvent himself
By Steven Feldman
CLIFTON, N.J.—Joel Lefkowitz, along with his brother, Ira, grew Hoboken Floors to become the largest flooring distributor in the U.S. with annual sales of $500 million at its peak. Less than four months after majority owner Code Hennessey & Simmons opted to shut the doors, Lefkowitz has re-surfaced as president of Allstate Flooring, the Mullican Flooring-owned distribution center serving the New York metro market.
Don’t be fooled for an instant. Despite not having an equity stake, this is Lefkowitz’ deal. “They give me full control,” he recently told FCNews in an exclusive interview. “While they do have to approve large-scale expenditures, Allstate has the ability to take on as many lines as it chooses—within reason and provided it does not compete or conflict with Mullican-branded products.”
In illustration, Allstate distributes Mercier as its second major line. After that, the lineup features a series of niche brands:
• Landmax, a Chinese-imported line that Lefkowitz describes as “engineered, sawn face, mostly exotics.”
• Ten Oaks, a domestically produced, upper-end line that is “the only prefinished, pre-sealed product on the market right now.”
• Arbor Creek, a Chinese-manufactured line of handscraped, exotic, unfinished and prefinished products.
• Hackwood, an “extremely high-end” collection of solid and engineered products featuring wide widths, and fumed and oiled looks.
• BamStar bamboo offering unique products such as stained and handscraped.
• Ark Flooring, run in the U.S. by Ira Lefkowitz and featuring unique solid and engineered product with “a large concentration on exotics.”
Lefkowitz admits Allstate is small—and he intends to keep it that way. “It’s like a familyrun business,” he said. “Everyone does what they have to do to get the job done. We all do multiple tasks.” The company consists of just 19 people: seven in the office, three drivers and their two helpers, two warehouse people and five salesmen. All are Hoboken alums.
One thing he promises is Allstate is not going to work on volume. “Hoboken got so big you had to do so much volume to fuel that thing,” he recalled. “That is one thing I am not going to do again. In this climate it is very difficult to be as big as Hoboken and succeed. You’re better off staying small, creating your own niche and working within your parameters.”
Lefkowitz also assures Allstate will concentrate solely on wood flooring. “Maybe we’ll have one laminate, but that’s as far as it goes.” And there will be no private-label program, such as Hoboken’s Woods of Distinction. “I’m definitely not ready for that. I think I come out stronger at this stage with manufacturer brands. Plus, you have to come out with your own merchandising, your own samples and bring in your own inventory. And you can’t share materials with other distributors if you have your own brand.”
Allstate’s success will be hinged on capitalizing on what Lefkowitz identifies as its competitive advantages. “There are high-end materials no one has access to or knows how to promote,” he said. “We are very strong in exotics. We are trying to find niches in the market where other people aren’t.”
And then there may be the biggest competitive advantage: himself. “I think I know wood flooring better than any other distributor in the business. I grew up in this business; I used to eat and breathe it. I know trends, finishes, how to source the right lines and partner with the right manufacturers.”
Despite the competitive advantages, Allstate is not without its challenges. “There seems to be 9 million people in the wood flooring business,” Lefkowitz said. “There is so much product around; they have to find a vehicle to move their products in order to stay in business. So you really have to find your niche.”
Another big problem, Lefkowitz noted, is the Internet, where this time around he is not getting involved as he did with Hoboken. “The thing about being small is you can pick and choose who you do business with. The Internet is not worth the aggravation. Retailers won’t give you business if you’re with the Internet sellers. Besides, they don’t need me. I’m trying to find product that’s different than what everyone else has and don’t want to bastardize it.”
At the end of the day, Lefkowitz says all he wants to be is a formidable distributor in this market. “I want to bring in unique products, set trends instead of follow them and make a profit. And we did that in the month of January.”
Specifically, his short-term goals include:
• Moving to larger facilities in Fairfield, N.J., in April;
• Putting Hoboken in the rear-view mirror;
• Exceeding budget. “We will look to grow a bit each month and hope to be among the top four distributors in the New York metro market.
CLIFTON, N.J.—Joel Lefkowitz, along with his brother, Ira, grew Hoboken Floors to become the largest flooring distributor in the U.S. with annual sales of $500 million at its peak. Less than four months after majority owner Code Hennessey & Simmons opted to shut the doors, Lefkowitz has re-surfaced as president of Allstate Flooring, the Mullican Flooring-owned distribution center serving the New York metro market.
Don’t be fooled for an instant. Despite not having an equity stake, this is Lefkowitz’ deal. “They give me full control,” he recently told FCNews in an exclusive interview. “While they do have to approve large-scale expenditures, Allstate has the ability to take on as many lines as it chooses—within reason and provided it does not compete or conflict with Mullican-branded products.”
In illustration, Allstate distributes Mercier as its second major line. After that, the lineup features a series of niche brands:
• Landmax, a Chinese-imported line that Lefkowitz describes as “engineered, sawn face, mostly exotics.”
• Ten Oaks, a domestically produced, upper-end line that is “the only prefinished, pre-sealed product on the market right now.”
• Arbor Creek, a Chinese-manufactured line of handscraped, exotic, unfinished and prefinished products.
• Hackwood, an “extremely high-end” collection of solid and engineered products featuring wide widths, and fumed and oiled looks.
• BamStar bamboo offering unique products such as stained and handscraped.
• Ark Flooring, run in the U.S. by Ira Lefkowitz and featuring unique solid and engineered product with “a large concentration on exotics.”
Lefkowitz admits Allstate is small—and he intends to keep it that way. “It’s like a familyrun business,” he said. “Everyone does what they have to do to get the job done. We all do multiple tasks.” The company consists of just 19 people: seven in the office, three drivers and their two helpers, two warehouse people and five salesmen. All are Hoboken alums.
One thing he promises is Allstate is not going to work on volume. “Hoboken got so big you had to do so much volume to fuel that thing,” he recalled. “That is one thing I am not going to do again. In this climate it is very difficult to be as big as Hoboken and succeed. You’re better off staying small, creating your own niche and working within your parameters.”
Lefkowitz also assures Allstate will concentrate solely on wood flooring. “Maybe we’ll have one laminate, but that’s as far as it goes.” And there will be no private-label program, such as Hoboken’s Woods of Distinction. “I’m definitely not ready for that. I think I come out stronger at this stage with manufacturer brands. Plus, you have to come out with your own merchandising, your own samples and bring in your own inventory. And you can’t share materials with other distributors if you have your own brand.”
Allstate’s success will be hinged on capitalizing on what Lefkowitz identifies as its competitive advantages. “There are high-end materials no one has access to or knows how to promote,” he said. “We are very strong in exotics. We are trying to find niches in the market where other people aren’t.”
And then there may be the biggest competitive advantage: himself. “I think I know wood flooring better than any other distributor in the business. I grew up in this business; I used to eat and breathe it. I know trends, finishes, how to source the right lines and partner with the right manufacturers.”
Despite the competitive advantages, Allstate is not without its challenges. “There seems to be 9 million people in the wood flooring business,” Lefkowitz said. “There is so much product around; they have to find a vehicle to move their products in order to stay in business. So you really have to find your niche.”
Another big problem, Lefkowitz noted, is the Internet, where this time around he is not getting involved as he did with Hoboken. “The thing about being small is you can pick and choose who you do business with. The Internet is not worth the aggravation. Retailers won’t give you business if you’re with the Internet sellers. Besides, they don’t need me. I’m trying to find product that’s different than what everyone else has and don’t want to bastardize it.”
At the end of the day, Lefkowitz says all he wants to be is a formidable distributor in this market. “I want to bring in unique products, set trends instead of follow them and make a profit. And we did that in the month of January.”
Specifically, his short-term goals include:
• Moving to larger facilities in Fairfield, N.J., in April;
• Putting Hoboken in the rear-view mirror;
• Exceeding budget. “We will look to grow a bit each month and hope to be among the top four distributors in the New York metro market.
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