Krause’s to Redecorate 50 Stores, Open 36 More

Custom-sofa maker Krause’s Furniture Inc. announced ambitious plans Monday to revive its struggling chain of furniture stores.

The Brea-based company said it will open 36 new outlets and remodel 50 of its 80 existing showrooms over the next 30 months.

The move is part of a push by Chairman Philip Hawley, former head of Carter Hawley Hale Stores, to update the company’s image and stem the tide of losses over the last few years.

“We have always had an excellent product, but in recent years, sales have unquestionably been hurt by the dated and austere look of our stores--many of which have changed little since our company was founded,” Hawley said in a statement. Company executives weren’t available for comment.

The new showrooms will feature brighter colors and better lighting. And they’ll display the company’s custom couches in living room groupings, instead of lined up in rows like a warehouse.

The remodeling already has boosted sales “beyond management’s expectations” at six stores, said James Donnelly, a spokesman for the company. The company plans to open four new stores and remodel 13 existing locations this year, he said.

Analysts say the company could have problems pulling off such an ambitious expansion, mainly because there are too many furniture stores now and demand is waning as baby boomers age.

Many furniture companies have been downsizing rather than expanding in recent years as California’s economy and housing market has slumped.

Last year, declining sales pushed Krause’s net loss to $13.4 million, higher than the $8.7-million loss it reported a year earlier.