CORTE MADERA, Calif.--(BUSINESS WIRE)--Restoration Hardware, an innovative luxury brand in the home furnishings marketplace, today announced a reorganization of the Company. The purpose of the reorganization is to create a vehicle to incubate new lines of business to support the Company’s future growth, while enhancing the predictability and focus of the Company’s existing business model. Under the new structure, Restoration Hardware will maintain all existing home businesses, while a new corporation will be created to develop new lines of business, including apparel, accessories, footwear and jewelry, many of which will be complementary to the Company’s new product development strategy. Restoration Hardware, at its sole option, will have the exclusive right to acquire each of the new businesses when they reach an appropriate level of maturity and profitability.
In order to execute this plan, the Company will reorganize its leadership team. Gary Friedman, the current Chairman and Co-CEO of Restoration Hardware, will become the Founder, Chairman, and CEO of Hierarchy, the newly created company. Mr. Friedman will control Hierarchy, with Restoration Hardware owning a minority stake. Mr. Friedman will continue to be involved with Restoration Hardware in an exclusive advisory role, serving as Creator and Curator for Restoration Hardware with a focus on strategy, creative, and design direction. Mr. Friedman will remain the largest individual shareholder of Restoration Hardware and will serve as a non-director advisor to the board in his role as Chairman Emeritus. Carlos Alberini, Co-CEO of Restoration Hardware, will become Restoration Hardware’s sole CEO and will lead all major functions of the business. Since joining the Company in 2010, Mr. Alberini has played a major role in transforming the Company into a leading luxury brand.
J. Michael Chu, a Managing Partner of Catterton Partners, will assume the role of Chairman of the Board of Restoration Hardware. Mr. Chu stated, “We are very excited about today’s announcement, as it represents yet another significant milestone in the extraordinary transformation of Restoration Hardware. The new structure provides a creative and efficient way to develop new businesses. Gary Friedman, who transformed Restoration Hardware into an admired lifestyle brand in the luxury home market, has demonstrated the ability to re-conceptualize and build some of the most successful brands in the industry, and his continued efforts to drive innovation at Restoration Hardware will be invaluable.”
Restoration Hardware is jointly controlled by Catterton Partners and Tower Three Partners. William D. Forrest, Managing Partner of Tower Three Partners, said, “We are thrilled with Carlos’s promotion to CEO of Restoration Hardware. Carlos has made a significant impact on the Company’s growth and enhanced performance over the past two years and he will lead a very strong management team. We are confident that Carlos will continue his successful leadership of Restoration Hardware.”
Gary Friedman commented, “Today’s announcement supports our goal and belief that we can curate a lifestyle well beyond the four walls of the home. It allows us to leverage our core capabilities to innovate, curate, and integrate new businesses and develop a brand that transcends typical models existing today. I am proud of the strong brand we have built, excited to pursue this new paradigm and partnership with Carlos, and passionate about imagining and creating a truly special business and brand.”
Carlos Alberini stated, “We have a great team of very passionate and committed people. We have accomplished a lot as an organization and we see big opportunities ahead. I am honored that the Board has entrusted me with this new role and I could not be happier to work with Gary to continue to build this amazing Company together.”
Gary Friedman was appointed Chairman and Co-Chief Executive Officer of Restoration Hardware in June 2010 and has served as the Company’s Chief Executive Officer since March 2001. Prior to joining the Company, from 1988 to 2001, Mr. Friedman worked for William-Sonoma, Inc., a specialty retailer of products for the home, where he served in various capacities, including as President and Chief Operating Officer from May 2000 to March 2001, as Chief Merchandising Officer and President of Retail Stores from 1995 to 2000 and as Executive Vice President and President of the William-Sonoma and Pottery Barn brands from 1993 to 1995. Previously, Mr. Friedman spent eleven years with The Gap, Inc., a specialty retailer, in various management positions.
Carlos Alberini joined Restoration Hardware as Co-Chief Executive Officer in June 2010. He has also been a director since June 2010. Prior to joining the Company, he was President and Chief Operating Officer of Guess?, Inc., a publicly traded specialty retailer of apparel and accessories, from December 2000 to June 2010. From October 2006 to December 2000, Mr. Alberini served as Senior Vice President and Chief Financial Officer of Footstar, Inc., a footwear retailer. From May 1995 to October 1996, Mr. Alberini served as Vice President of Finance and Acting Chief Financial Officer of the Melville Corporation, a retail holding corporation. From 1987 to 1995 he was with The Bon Ton Stores, Inc., an operator of department stores, in various capacities, including Vice President, Corporate Controller and Senior Vice President, Chief Financial Officer. Prior to that, Mr. Alberini served in various positions at PriceWaterhouseCoopers LLP, an audit firm.
About Restoration Hardware
Restoration Hardware is a luxury brand in the home furnishings marketplace, offering product assortments across a number of categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, as well as baby and child products. Restoration Hardware operates a fully integrated business across multiple channels of distribution including galleries, source books and websites.
About Catterton Partners
With more than $2.5 billion currently under management and a twenty-three year track record of success in building high growth companies, Catterton Partners is the leading consumer-focused private equity firm. Since its founding in 1989, Catterton has leveraged its category insight, strategic and operating skills, and network of industry contacts to establish one of the strongest private equity investment track records in the middle market. Catterton Partners invests in all major consumer segments, including Food and Beverage, Retail and Restaurants, Consumer Products and Services, Consumer Health, and Media and Marketing Services. Catterton's investments include: Restoration Hardware, Cheddar's and Noodles restaurants, Frederic Fekkai, Build-A-Bear Workshop, Kettle Foods, Odwalla and P.F. Chang's China Bistro. More information about Catterton Partners can be found at http://www.cpequity.com.
About Tower Three Partners
Tower Three is an operationally‐focused private equity firm with over $700 million in capital under management. Our strategy is to create and manage a concentrated portfolio of investments in U.S.‐based middle‐market businesses which face either balance sheet, operational or sector challenges. Our professionals are experienced with operational management, financial restructuring, private equity and credit markets. With long‐term committed capital from major institutional investors, in addition to traditional buyouts or take‐private transactions Tower Three Partners has the flexibility to acquire fulcrum debt securities and participate in restructuring transactions. Our firm targets investments of $25 million to $125 million across a broad range of industries.