Rug Decor owners buy division
GULFPORT — CCA Global Partners Inc. has entered into a definitive agreement to sell its Rug Decor division to a group led by three of its current Rug Decor franchisees. Terms were not disclosed.
The franchisees, Rick Ruby, Keith Rhodes and Bob Ellis, currently own a total of six Rug Decor stores, and have been members of the Rug Decor Advisory Council since its inception in 2003.
CCA reached the conclusion that while the Rug Decor model continues to be a unique retail format for selling area rugs with significant potential for success, the Rug Decor business is not central to CCA’s core flooring business or strategy, and Rug Decor franchisees will be able to move forward and prosper more rapidly with an ownership group that will provide full-time attention and commitment to the business.
Rug Décor’s current president Scott Hayim will be a member of the ownership group and will be CEO of Rug Décor Partners, LLC. All existing franchise and license agreements will be transferred to Rug Décor Partners, along with the St. Louis, Mo., corporate store. The six stores currently owned by the new group will be operated as corporate stores, located in Fort Myers, Destin, Jacksonville and St. Augustine in Florida, Spanish Fort, Ala., and Gulfport along with the existing corporate store in St. Louis.
Rug Décor Partners expect to continue existing vendor relationships and current corporate programs. It will remain headquartered in St. Louis.
Keith Rhodes, owner of stores in Gulfport, Spanish Fort and Destin said, “I am honored to be a partner with this experienced group of individuals who share a common vision and determination to take this business model to the next level. With hard and challenging times upon us, we know that with our great group of franchisees and acquired retail working knowledge, we can make Rug Décor the best area rug specialty model in the U.S. We have a lot of work to do, but we plan big things for the future.”
CCA remains supportive of the Rug Decor franchisees and the new business owners. The owners of Rug Décor Partners and most of the franchisees have continuing relationships with CCA through other businesses. CCA will continue to provide corporate support services to Rug Décor Partners for a period of time after the transaction closes, which was expected late last month.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- UMMC reaching out after death of high school football player
- UPDATED: Jackson agrees to repay HUD $1.5 million for Farish Street blunders
- Gov. Bryant intervening in same-sex couple's divorce
- Vicksburg mayor marries during lunch break
- Mississippi River mayors announce 'seed money' for waterfront developments
- Tragedy for Jackson Prep: Football player Walker Wilbanks dies
- City leaders vote against offering insurance to one adult, possibly same-sex partner
- School superintendent says he never intended to hire wife's uncle, but recommended him
- McDaniel files legal arguments as he looks to overturn Cochran loss