Floyd, the Detroit-based direct-to-consumer furniture brand, has been acquired by Rize Home, a Cleveland-based manufacturer of beds and bedding. The terms of the deal, first reported by Furniture Today, have not been disclosed. Floyd, founded in 2013 by Kyle Hoff and Alex O'Dell, initially gained attention for its adjustable leg that transformed flat surfaces into tables. After launching the product on Kickstarter, the company raised over $250,000, significantly exceeding its $18,000 target, which led to the development of the Floyd brand.
Photo: Floyd.
Over the years, Floyd has evolved from a single product into a comprehensive home furnishings brand, offering beds, desks, seating, and storage solutions. The company's rise has followed a familiar trajectory for direct-to-consumer (DTC) businesses, with successful crowd funding campaigns, extensive media coverage, rapid social media growth, and significant venture capital investment—$25 million by 2021. However, recent challenges, particularly in sourcing and logistics due to the Covid boom-and-bust cycle, led the founders to seek a deal with Rize Home.
Hoff explained that one of Floyd's major hurdles in recent years has been backend operations, stating that Rize Home excels in these areas. 'The next phase of Floyd is an opportunity for us to continue putting out great products and telling stories, and having more support on the operational, behind-the-scenes stuff,' he said. Rize Home, which began as Mantua Manufacturing Company over 75 years ago, has primarily operated as a wholesale business but expanded into adjustable beds in the 2000s. The company's acquisition of Floyd marks a shift towards a more consumer-facing, omnichannel strategy.
David Jaffe, CEO of Rize Home, shared that this acquisition is part of a broader move to adapt to the retail landscape. 'To be successful in the retail world, you need a good omnichannel strategy,' he said, highlighting the need for direct consumer engagement, which had been missing in Rize's traditional wholesale model. Going forward, Rize will manage the sourcing and logistics for Floyd, allowing Hoff and O'Dell to focus on product development, marketing, and brand-building.
Despite this change, Jaffe assured that there would be no alteration to the Floyd brand's aesthetic or product quality. 'We feel really strongly that the Floyd brand is the Floyd brand, and we're not trying to merge it with the Rize brand,' he emphasised. The partnership is expected to bring operational improvements, including shorter lead times and enhanced efficiency. The Floyd team will remain based in Detroit, but Rize may explore limited retail distribution in the future, a path many DTC brands have taken as they expand their presence.
Hoff, committed to Floyd's long-term future, expressed excitement about the prospects of new product launches and further growth. 'I'm invigorated to build and launch new products, and go after a larger vision,' he concluded, signalling his dedication to the brand's continued success.
Source: businessofhome.com