Summary:
Floyd, a Detroit furniture startup, has been acquired by Rize Home.
Founded in 2013 by Alex O'Dell and Kyle Hoff, Floyd gained recognition through a Kickstarter campaign.
CEO David Jaffe aims to maintain Floyd's distinct brand identity and expand its market reach.
Floyd's workforce decreased from 60 to 15-20 by the time of the acquisition.
The acquisition is seen as a positive move for both Floyd and the Detroit business community.
Floyd's Rise from Startup to Acquisition
A Detroit furniture company that gained significant traction as a startup and received multiple design awards has been sold. Founded in 2013 by recent college graduates Alex O'Dell and Kyle Hoff, Floyd specializes in direct-to-consumer furniture, offering a variety of living room and bedroom pieces. The company's early funding stemmed from a Kickstarter campaign.
In late October, Floyd was acquired by Rize Home, a larger furniture company based in Ohio. Founded in 1952, Rize manufactures bed frames and additional furniture items. David Jaffe, Rize's owner and CEO, is a co-founder of the outdoor apparel retailer Moosejaw, which adds an intriguing connection to Floyd's history.
Maintaining the Floyd Brand Identity
During a phone interview, Jaffe emphasized that Floyd will continue to operate as a distinct brand and plans to expand its market presence through new retail channels while maintaining its Detroit roots. The co-founders, O'Dell and Hoff, will remain involved in guiding Floyd's direction.
"It has a really unique identity and they’ve built an unbelievable brand that we don’t intend to touch," Jaffe stated.
Floyd will relocate its headquarters from Eastern Market to Corktown, although the exact location is yet to be determined. The acquisition is seen as a strategic move to enhance product rollout and logistics efficiency.
Growth and Changes Amidst Challenges
Floyd experienced significant growth during the early years of the COVID-19 pandemic, with sales surging and the employee count rising to 60. However, this number dwindled to 15-20 by the time of the acquisition. Jaffe remarked on the overall spike in furniture spending during the pandemic, which benefited many in the industry.
In 2021, Floyd successfully raised $15 million in a Series B funding round and garnered national recognition for its products, including sectional sofas.
Positive Outlook for Floyd's Future
Jaffe's connection to Moosejaw, alongside his ongoing friendship with co-founder Robert Wolfe, positions him uniquely to guide Floyd through this transition. Wolfe expressed optimism about the acquisition, comparing Floyd's brand ethos to Patagonia, emphasizing the community and identity behind the products.
Overall, the sale is viewed positively for both Floyd and the Detroit business community. Jaffe believes the acquisition will allow Floyd to leverage Rize's strengths while preserving its unique brand identity and commitment to design and sustainability.
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