The June Lightovation show was a strong one for Nevada-based manufacturer Varaluz, especially as it marked the launch of a proprietary furniture collaboration with the brand Conrad Blair, which was very well-received. That welcome reception to the product introductions overall was tempered by some not-so-good news of the company filing for Chapter 11 reorganization the week after Lightovation.
As company founder Ron Henderson explained, “This is an expedited version of Chapter 11 with full repayment of valid debts.” The expedited arrangement allows for a speedier resolution than the typical Chapter 11 filing and Henderson is adamant that the company’s day-to-day operations are continuing business as usual. “We have plenty of inventory and we’re already shipping what we showed in June,” he said. Furthermore, Varaluz’s licensing agreements with The Smithsonian and with interior designer Tamara Day are not affected in any way.
In short, any rumors that Varaluz is closing its doors are false. Henderson admitted there have been financial complications dating back to absorbing the exorbitant freight costs in the aftermath of the pandemic, coupled with his decision not to institute price increases during that time, as contributing factors that essentially snowballed into a larger crisis when other unexpected debts arose.
“This action [Chapter 11] is to protect our team,” he explained. “We’re honoring all of our debts, including paying commissions. Everyone will be paid.”
Henderson is optimistic about a quick resolution. “I look at this as our next chapter. We are a nimble, small company,” he noted. The healthy orders that the new lighting, furniture, and wall art received at the recent High Point Market and Lightovation hopefully indicate that the financial setback will be temporary as the manufacturer regains its footing.
Varaluz will continue to produce unique, trend-forward pieces with a Mid-Century Modern core. The Conrad Blair line of furniture is expected to grow. “The quality is amazing; it’s all solid wood,” Henderson said. “The hope is to grow the furniture line and, of course, the fresh lighting designs that customers have come to expect from Varaluz.”
The company will continue to exhibit at Lightovation, High Point Market, and Las Vegas Market and will be debuting new products at each upcoming show.
