Lakeside Appliance closing its four stores
BOB BROWN/TIMES-DISPATCH
About 35 people are losing their jobs at Lakeside Appliance. The company had already cuts its workforce by about 30 percent in the past few months.
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
.
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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Reader Reactions
Very sorry to see them close. I bought an oven from the Lakeside store just last year. I hope they will honor all the extended warranties they sold.
As I continue to tell people about the closing of Lakeside Applicance, the news continues to elicit looks of shock and concern. It was a Richmond institution—a symbol of local business done right. Let’s hope that Peter Francisco and others can revive L.A. in the near future; the local community would certainly respond.
Ex-lakeside-When I bought my last refrigerator, I called for service on my existing, dying refrigerator. The new manager told me he had moved here to run the service department. The owner’s personal name was never mentioned, he mentioned the name of a firm. I asked him if it was a larger company that had bought Lakeside, and he said “Yes.“ He told me the state where the company was based. I can’t remember, but I do remember it was a southern state.
Since the 80’s, there is a history of larger companies acquiring smaller ones. Subsequently some of these larger companies relied on loans to do this. This is why I assumed this is what happened to Lakeside. The article stated the main reason the company closed is because they could not cope with its inventory financing and during this economic downturn.
Historically, a lot of companies operated on a cash basis, without debt. The larger a company is, the harder it is to do this, because the thirst for acquiring new companies creates debt.
Whatever, I just hate to see them go.
It was our true pleasure to use the services of Lakeside Appliance. They were a class act and the servicemen were always professional and dependable. It breaks our heart to know that they are going out of business. Our hats off to each and everyone associated with this fine company.
Ex-Lakeside was right. They really didn’t have to market themselves—they were already a well-established business. Their repeat business was word-of-mouth advertising and that’s the best type of business; EVERYONE knew about LA.
What I meant by the Buffalo NY comment was that you seemed to not know about family-owned businesses in Richmond area, especially a business over 50 years old.
Then you go on to say “I just don’t want to see other fine Richmond establishments go out of business.“ Then why did you NOT support LA, but instead go past the store on your way to get your W&D from Sears outlet?
It’s just like CC, everyone came out for the closing sales, but WHERE were the customers to support them on a daily basis before they closed?
“jake” - it’s ok - not offended. i’ve worked retail sales floors for 20 years, 12 with lakeside. this is the worst market i’ve seen. marketing that worked last year didn’t work this year and i know they tried a bunch of different things. it’s just unfortunate.
our customers were the best. it was fun waiting on people that had been shopping here for years.
“Ex-Lakeside” I want to apologize if my analysis or remarks offended you or your former co-workers in anyway. I analyze businesses for a living and evaluate their marketing so it was second nature for me to do that, perhaps this was not the correct forum. They were in no way personal or meant to be malicious, just a simple external business analysis of a good local company run by good people that I am truly sorry to see go. I hope everything works out for you guys and wish you the best of luck. I am a small business man myself, so I know how hard keeping it going day to day can be.
“Interested Read” You nailed my point, Lakeside was different because of service, installation knowledge. That is what they should have marketed strong than they did, that was their point of differentiation. You lost me on the Buffalo, NY statement, got my degrees in Virginia thank you, but I’m not sure what that has to do with anything. My point is Lakeside clearly had values to strongly position them in the market but those value were no communicated to the market. I think it’s safe to say Lakeside, like many other small businesses, did not put together an annual marketing plan to keep the public engaged. A lot of older businesses stop doing that and just assume everyone knows what they’re all about. My point is that message was not known and local businesses should see this as an example to not make the same mistake. A focused message and a plan to communicate that message to the public is the most important thing any business can do if they want to stay competitive. I want to emphasis I have nothing against Lakeside, I just don’t want to see other fine Richmond establishments go out of business and hope I can provide some direction through my analysis.
I also want to address “Cobb&Alfred;“ yes I got my MBA from Virginia Tech. I did it on weekends while working for time. My analysis come from that and by experience helping over lots of local businesses over the last decade with their marketing. Don’t see why I’m criticized for getting an education and having experience. Jeez! Tough Crowd!
we never solved the problem how to advertise our delivery and installation. we tried. we had marketing firms try. our specialty was the stuff that lowes would leave on your kitchen floor. not much value unless you’ve actually had it happen.
word of mouth worked great. but how many people do you know that are spending money right now that they can defer?
i missed the part where an out of state firm bought us. we were locally owned.
local ownership had nothing to do with the finance issue.
I’m sad to see Lakeside Appliance go. When it was bought by an out of state firm a few years ago they kept many of the same employees. The service and installation was always exemplary, and the sales staff knowledgeable.
I can’t imagine living in Lakeside and not knowing of Lakeside Appliance or Waddy Francisco and his family. Both are institutions in Lakeside, and a visible part of that community. I always bought my new appliances at Lakeside, although I went to the Broad Street store.
Lakeside was “old school”. I’m not sure if they ever advertised, but I never met anyone in a discussion about appliances who didn’t know of them, and most of those people had bought from them.
What is sad is because of mega-stores with larger buying power and lower wages to pay, and a society which looks at price only and not service and reliability, the mom & pops are dying one by one.
Lakeside had been swallowed by a larger company when the Francisco’s sold it, but the new owners were wise to keep the same employees. I hate to see it go, and I hope Jeff succeeds in reviving it.
I don’t think this problem with the banks and loans would have arisen if it was still locally owned. Contrary to the tone of the article, it was bought by a larger firm from out of state. At least that is what I was told when I bought my refrigerator several years ago.
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