Krause's Entering East Coast Market

L.A. Times Archives

May 11, 1993 12 AM PT

BREA —

Krause’s Sofa Factory says it is moving into the East Coast market after its parent company bought Castro Convertible Corp., a maker of convertible sofas.

Krause’s makes upholstered furniture in Brea and has 68 stores in seven Western states and Chicago. Castro, a 62-year-old company in New Hyde Park, N.Y., has 18 stores stores in New York, New Jersey and Florida.

“Growth into new geographical regions continues to be our priority and this purchase represents a significant step in our plans,” Thomas M. DeLitto, president and CEO of Worth Corp., Krause’s Pleasanton-based parent company, said Friday.

Krause’s didn’t disclose the price it paid for Castro.

Worth Corp. is a holding company that owns 60% of Krause’s and 18% of Mr. Coffee Inc.

Worth stock closed at $2.125 on the NASDAQ Friday, up 25 cents a share.