Article Number: 1190
FC*CCA Ceases Operations After 19 Years, Donates $770,700 In Proceeds To FCIF
Anaheim, Calif.—With the realization that its job had been accomplished, the Floor Covering Consumer Credit Association (FC*CCA), the marketing arm of the industry’s Flex credit card, ceased operations as of June 30. At that time, it donated all its remaining funds—$770,700—to the Floor Covering Industry Foundation (FCIF), a non-profit organization dedicated to financially assisting industry personnel who have experienced catastrophic illnesses, severe disabilities or life-altering hardships.
“Ever since our inception,” said Paul Comiskey, chairman of Flex, “we have been dedicated to raising the professionalism of the retail community and to making specialty retailers more competitive in the marketplace. To this end, we have supported industry certification, education and training programs.
“In this same selfless spirit,” he continued, “we chose the FCIF to make this legacy gift of $777,700. As we have helped many in the floor covering industry over the last two decades, we hope our work lives on in the FCIF and continues to assist those most in need.”
The $777,700 is the largest single donation to the FCIF in its 25-year history.
“This gift is one more example of the selfless contributions the FC*CCA has made to the industry over the last two decades,” said Christopher Davis, FCIF’s president. “We are all touched by its generosity and honored to be given the responsibility to carry on its good works by helping those in our industry most in need.
“The men and women who helped make Flex so successful are true heroes and deserve to be called ‘champions of our industry,’” he added.
Keith Campbell, FCIF’s chairman as well as of Mannington Mills, noted, “This infusion of funds creates a marvelous situation that places the Foundation on solid footing to continue well into the future in order to provide assistance to those in the floor covering industry in need.”
The $777,700 comes from what was left of FC*CCA’s operating capital ($245,000) and sponsor funds which were originally invested in the Flex program ($532,000). While the total amount is being given to FCIF, $329,500 of it will be used to establish a permanent endowment to be used for the charitable purposes of FCIF. That request came from Shaw Industries as it represented its share of the invested funds.
According to Pennsylvania law, where FC*CCA was charted, the association was required to find all those who originally invested in it and ask if they want the money back, but the money would be taxed. Those in Chapter 11 had no choice but to take it. Consolidation also plays a role, since the money invested is attributed to the company which made the acquisition, hence Shaw’s large sum.
“We are happy to reinvest the money into this worthwhile industry cause,” said Julius Shaw Jr., the mill’s executive vice president.
Davis said FCIF’s board will meet Sept. 27 at CCA Global’s annual charity golf outing in Stone Mountain, Ga., to benefit the organization to “determine the best course of action. Regardless of the decisions made, the full donation will be handled both responsibly and prudently.”
Prior to 1987, the only way a consumer could purchase flooring was to either pay with cash or use a national credit card such as MasterCard or Visa. That’s where FC*CCA stepped in.
Founded by the World Floor Covering Association (created by a merger of the Western Floor Covering Association and American Floorcovering Association), Carpet & Rug Institute, Dalton Floor Covering Market Association, Floor Covering Installation Contractors Association and National Association of Floor Covering Distributors, the FC*CCA was established to help bring private label credit
to the flooring industry.
With the help of numerous sponsor companies, $842,750 was invested, a board elected with Ralph Boe, then president of Horizon Industries and now president of Beaulieu of America, its founding chairman, and the association was off and running. Carpetland in Chicago was the first retailer to take advantage of the program which was initially operated through Bank One and today by GE Credit Services.
Since then, 21,191 dealers have participated in the program over Flex’ 19-year history with total cumulative sales of $16.5 billion. For the 7,500 dealers still participating in the program, nothing will change for them, said Roger Hunt, executive director. “The credit program is still active and being operated by GE. It has a long and successful track record in the industry.”
With the industry approaching annual mill sales of $25 billion (see related story page one), there is no telling how much lower that figure would be without the Flex program.
The reason? Based on 2005 figures, the average ticket sale with a private label card was $2,636, while the average sale using a Visa/Mastercard was $702 and cash purchases averaged $750.
“When we started there was nothing in the industry,” said Hunt, who has been with Flex since it rolled out to dealers in 1988. “Now look at it. There are private label programs being offered all over; every buying group and major mill uses one, plus numerous regional and local financial institutions are willing to offer a credit program.”
Sam O’Krent of O’Krents Abbey Flooring in San Antonio, said, “At a time when we were looking for every advantage to compete with the big department stores, the FC*CCA gave us a selling tool which enabled our customers to extend their personal buying power and enjoy our products. Our long and proud affiliation with the association is one reason why we have been able to grow and serve the greater San Antonio market.”
So, if things have been going so well, why cease operations? “We did our job,” Hunt said, “which was to get credit into the industry. The concept of credit as a marketing tool is well understood among retailers and there are multiple programs for providing that tool. The role of Flex in pioneering the use of credit to our industry is now complete.”
The timing is also right, because GE, which was subsidizing the association, also decided to go in a different direction and was cutting back its funding. That is, instead of contracting out the program’s marketing services to each individual industry such as floor covering, it hired a telemarketing company to market its credit programs to all the industries it serves.
“So,” Hunt concluded, “we pursued some other options and in the end decided the best decision was to dissolve, knowing we can walk away with our heads high for doing a job well done.”
For more information about the FCIF, call 714/634-0302.
“Ever since our inception,” said Paul Comiskey, chairman of Flex, “we have been dedicated to raising the professionalism of the retail community and to making specialty retailers more competitive in the marketplace. To this end, we have supported industry certification, education and training programs.
“In this same selfless spirit,” he continued, “we chose the FCIF to make this legacy gift of $777,700. As we have helped many in the floor covering industry over the last two decades, we hope our work lives on in the FCIF and continues to assist those most in need.”
The $777,700 is the largest single donation to the FCIF in its 25-year history.
“This gift is one more example of the selfless contributions the FC*CCA has made to the industry over the last two decades,” said Christopher Davis, FCIF’s president. “We are all touched by its generosity and honored to be given the responsibility to carry on its good works by helping those in our industry most in need.
“The men and women who helped make Flex so successful are true heroes and deserve to be called ‘champions of our industry,’” he added.
Keith Campbell, FCIF’s chairman as well as of Mannington Mills, noted, “This infusion of funds creates a marvelous situation that places the Foundation on solid footing to continue well into the future in order to provide assistance to those in the floor covering industry in need.”
The $777,700 comes from what was left of FC*CCA’s operating capital ($245,000) and sponsor funds which were originally invested in the Flex program ($532,000). While the total amount is being given to FCIF, $329,500 of it will be used to establish a permanent endowment to be used for the charitable purposes of FCIF. That request came from Shaw Industries as it represented its share of the invested funds.
According to Pennsylvania law, where FC*CCA was charted, the association was required to find all those who originally invested in it and ask if they want the money back, but the money would be taxed. Those in Chapter 11 had no choice but to take it. Consolidation also plays a role, since the money invested is attributed to the company which made the acquisition, hence Shaw’s large sum.
“We are happy to reinvest the money into this worthwhile industry cause,” said Julius Shaw Jr., the mill’s executive vice president.
Davis said FCIF’s board will meet Sept. 27 at CCA Global’s annual charity golf outing in Stone Mountain, Ga., to benefit the organization to “determine the best course of action. Regardless of the decisions made, the full donation will be handled both responsibly and prudently.”
Prior to 1987, the only way a consumer could purchase flooring was to either pay with cash or use a national credit card such as MasterCard or Visa. That’s where FC*CCA stepped in.
Founded by the World Floor Covering Association (created by a merger of the Western Floor Covering Association and American Floorcovering Association), Carpet & Rug Institute, Dalton Floor Covering Market Association, Floor Covering Installation Contractors Association and National Association of Floor Covering Distributors, the FC*CCA was established to help bring private label credit
to the flooring industry.
With the help of numerous sponsor companies, $842,750 was invested, a board elected with Ralph Boe, then president of Horizon Industries and now president of Beaulieu of America, its founding chairman, and the association was off and running. Carpetland in Chicago was the first retailer to take advantage of the program which was initially operated through Bank One and today by GE Credit Services.
Since then, 21,191 dealers have participated in the program over Flex’ 19-year history with total cumulative sales of $16.5 billion. For the 7,500 dealers still participating in the program, nothing will change for them, said Roger Hunt, executive director. “The credit program is still active and being operated by GE. It has a long and successful track record in the industry.”
With the industry approaching annual mill sales of $25 billion (see related story page one), there is no telling how much lower that figure would be without the Flex program.
The reason? Based on 2005 figures, the average ticket sale with a private label card was $2,636, while the average sale using a Visa/Mastercard was $702 and cash purchases averaged $750.
“When we started there was nothing in the industry,” said Hunt, who has been with Flex since it rolled out to dealers in 1988. “Now look at it. There are private label programs being offered all over; every buying group and major mill uses one, plus numerous regional and local financial institutions are willing to offer a credit program.”
Sam O’Krent of O’Krents Abbey Flooring in San Antonio, said, “At a time when we were looking for every advantage to compete with the big department stores, the FC*CCA gave us a selling tool which enabled our customers to extend their personal buying power and enjoy our products. Our long and proud affiliation with the association is one reason why we have been able to grow and serve the greater San Antonio market.”
So, if things have been going so well, why cease operations? “We did our job,” Hunt said, “which was to get credit into the industry. The concept of credit as a marketing tool is well understood among retailers and there are multiple programs for providing that tool. The role of Flex in pioneering the use of credit to our industry is now complete.”
The timing is also right, because GE, which was subsidizing the association, also decided to go in a different direction and was cutting back its funding. That is, instead of contracting out the program’s marketing services to each individual industry such as floor covering, it hired a telemarketing company to market its credit programs to all the industries it serves.
“So,” Hunt concluded, “we pursued some other options and in the end decided the best decision was to dissolve, knowing we can walk away with our heads high for doing a job well done.”
For more information about the FCIF, call 714/634-0302.
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