Thomaston gets facelift - Thomaston Mills Inc - Feature Story - HomeMarket Trends Supplement - company profile

Discount Store News, April 1, 1991

Thomaston Gets Facelift

While larger competitors stagger through early 1991 struggling with heavy debt load, order cutbacks and cancellations, and the impending demise of several second-tier customers, Thomaston Mills president and ceo Niel High-tower sees a rosy future for his relatively small textile operation, despite losses in the past two quarters. "We have a clean balance sheet, our capital improvement expenditures are starting to bear fruit, and we're well on our way to becoming the industry's low-cost provider," he said in a recent interview.

The situation was very different just two years ago. While the rest of the industry had graduated to higher thread count goods, massive percale programs, high fashion and expanded, coordinated product lines, Thomaston was known primarily as a producer of lowend muslin product. Its percale line was formed from a 65% polyester, 35% cotton blend, compared to competitors' more attractive 50/50 blends.

So, effective this year, all Thomaston percale will boast a 50/50 blend in all of its percale, and a higher percentage of its line will be produced in percale, including some of its muslin patterns. And the company will emphasize styling, under the direction of director of design Barbara Batra.

Last year, Thomaston entered the comforter and pillow sham market for the first time, giving the company a competitively deep product line. This year, decorative pillows will be introduced on a test basis. "We'll see what the reaction is," Batra said.

According to vice president John Pope, chain buyers have been impressed with the company's turn-around. "We really had to move faster than we had planned because the reception was so overwhelming," Pope said. "This was a major change in direction, but it fit in perfectly with what retailers said they needed from us."

Thomaston has very rapidly modernized over the past two years, progressively switching to updated technology, including robotics and air jet spinning and weaving. The new technology has in turn enabled the company to revamp its product line. "We're a lot more able to do what our designer and marketing people want," Pope said. "The new technology has removed a lot of constraints."

Some constraints remain, of course. Although Thomaston can now provide extensive new looks in window treatments, more luxurious thread formulations, and is in the process of testing decorative pillows, some limitations remain, according to the company. Foremost among these is the inability to embellish textiles with piping or attached hems, both of which are finding favor in the mass market. However, said Batra, those capabilities are "not too far down the road."

To get the unmarket message out, Thomaston redesigned its packaging and renamed its percale line. The new name, American Mood, "gives the consumer a new message," said Pope. "We've downplayed the Thomaston name, and hope to build American Mood as a fashionable, value-priced line. So far, mass market buyers have been excited about the concept." Muslin packaging is also due for an update, probably later this year.

According to Hightower, Thomaston has spend $15 million in each of the last two years on new technology, and plans to spend as much in the next two. Computers and robots now comb and mix fiber blends to prearranged specifications without human intervention. New technology, Hightower said, has allowed the company to increase quality and productivity at the same time.

However, the best-made products won't sell unless the color and look are right. The company is attempting to overcome its dowdy image with eight new percale patterns, ranging from optical effect geometrics to dramatic oversized floral looks, all in a 50/50 cotton/polyester blend.

All percale collection will include coordinating window treatments and some will have coordinating decorative pillows. In previews, major chains have reacted positively to the new line, Batra said.

The company has taken a major plunge into new brights, geometrics and ethnic influences. "I think bright colors will be the trend (at the spring market)," Batra said. "But soft, air-brushed looks and dusty pastels will be important too."

Hightower noted that he was worried about the effects of a long-term recession, and the then-current Gulf War, but added the company's relatively low level of debt (about $17 million as of the end of fiscal 1990) meant Thomaston would be in a better competitive position than some of its larger competitors. "We had a really strong first half, with record sales, last year, but last fall sales just flattened out", he said. "We expect the first half of this year to be very soft, but are optimistic about the second half."

PHOTO : Thomaston's management team: John Pope national merchandise manager; executive vice president sales George Hightower; vice president, consumer products John Carson, and president Neil Hightower.

PHOTO : Automation is the key to Thomaston's new technology. At left, yarn is automatically wound into bins; at right, robots repairs breaks during spinning.