Another legendary Richmond-area retailer is joining the scrap heap of history.
Lakeside Appliance, which opened its first store in 1954, is closing its four stores and filling its final commercial orders.
"It is with much regret that we must discontinue operations effective immediately," read a sign posted yesterday on the door of its store on West Broad Street in Henrico County.
One store, on Buford Road in Bon Air, was operated alongside Kitchen Crafters & Bath, which is establishing a full-service appliance department to replace the Lakeside Appliance operation.
A Lakeside Appliance spokesman, who asked not to be named for legal reasons, said the company is shutting down because it lost its inventory financing and could not continue.
"We could have survived the downturn, we could have survived a cut in our financing, but we couldn't survive both," he said.
To try to fight off insolvency, the company had cut expenses and work force by about 30 percent in the past few months.
But it wasn't enough to keep Lakeside afloat, he said. About 35 people are losing their jobs.
Lakeside was founded by T.W. "Waddy" Francisco, who opened his first store 55 years ago on Lakeside Avenue in Henrico County.
The family owned the company until 2003, when they sold it to Cal Gray and his son-in-law, James Dick.
"Obviously, I'm sorry to see that the folks we sold to were not able to make a go of it," said Jeff Francisco, a son of the founder and president of Kitchen Crafters & Bath.
He said there is some solace because his business is staying afloat and keeping with the family tradition of selling appliances.
"While [the family] is sad, we're happy that we're continuing on, be it with a different name and format," he said.
Franco Ambrogi, owner of Franco's Fine Clothier, said: "I hate to see that happen. Anytime you lose a Richmond company, it's not very good."
Franco's, which has a store on Lakeside Avenue, has been in business in the area for more than 35 years. Ambrogi said his daughter bought a washing machine from Lakeside Appliance about six months ago.
David Urban, a professor of marketing at Virginia Commonwealth University, said he just bought a countertop and garbage disposal from Lakeside.
"Anytime a community loses an established company like Lakeside Appliance, it's a sad day," Urban said. "This is a company that had tremendous name recognition in the Richmond area, not just for selling appliances but for delivery, installation and service."
Lakeside is the latest in a string of iconic Richmond-area companies to encounter financial difficulties.
Circuit City Stores Inc., which rose to international fame, shut down this year. Mattress King and S&K Famous Brands are fighting for their lives in bankruptcy court.
"Little by little, the Richmond area is losing its iconic local business names," Urban said. "It's a process of creeping homogeneity that's a bit disturbing."
Nancy Thomas, president of the Retail Merchants Association, worries that losing homegrown companies affects the entire business community.
"Small businesses feed off of each other. They help drive traffic to each other's stores, particularly in the smaller shopping districts," Thomas said. "So when a long-standing company like Lakeside goes out of business, it has an impact on the customer and the retail community."
Lakeside expects to finish filling its final orders in the next week, its spokesman said. It then will decide its future, which could include bankruptcy, he said.
But Peter Francisco, another son of the founder, said he is not sure the community has seen the last of Lakeside Appliance.
"Lakeside Appliance is not dead," he said. "They still have a pulse."
Contact Louis Llovio at (804) 649-6348 or LLLovio@timesdispatch.com.
Lakeside Appliance
The company is closing its four stores:Lakeside: 5418 Lakeside Ave.
Western Henrico: 9071 W. Broad St.
Brandermill: 13220 Hull Street Road
Bon Air: 2611 Buford Road (will continue to operate as Kitchen Crafters & Bath)
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