Ragazzi,
the Quebec-based nursery furniture maker, announced it is closing its doors
effective today May 1.

Ragazzi sent this
<a href="https://www.babybargains.com/ragazzi.pdf"
target=”NewWindow”>letter to dealers, blaming “today’s economic
realities” in the shutdown. BABY BARGAINS obtained a copy from an authorized
Ragazzi dealer.

Ragazzi, also known as D
& F Furniture/Les Meubles D & F, told its dealers it plans to fulfill
all outstanding orders received by May 12 if dealers pay Ragazzi by wire
transfer.

In business since 1972,
Ragazzi is among North America’s largest nursery furniture makers and a mainstay
of specialty stores. Among independent furniture stores, Ragazzi is a top
vendor.

Ragazzi told dealers it plans to
“wind down its domestic manufacturing operations on an orderly basis and focus
on its importing activities.” Ragazzi then asks for wire transfers of cash to
cover any outstanding orders. It is unclear whether this means Ragazzi plans to
reorganize as an import-only company under another name—Ragazzi recently
started a subsidiary called Bambino to import furniture from Chile. A call made
after-hours to Ragazzi’s headquarters was not returned and there is no mention
of this situation on Ragazzi’s home
page.

All of Ragazzi’s furniture is made
in a plant in Quebec.

Like many furniture
makers, Ragazzi suffered sales declines in recent years as more nursery
furniture was imported from China. Other Canadian crib makers have seen similar
fates—rival EG’s assets was sold to rocker-maker Dutailier in 2004. Ragazzi
also refused to sell its wares in chains stores and instead focused on
independents. However, the number of indie stores has shrunk over the years as
chains like Babies R Us expanded.

The
recent rise in the Canadian dollar probably also played a role in Ragazzi’s
demise. The currency exchange made Ragazzi’s furniture more expensive in the US;
the average Ragazzi crib now retails for $600 to $700. A Chinese-made crib sold
in Babies R US can be had for $300. In the late 90’s, when the Canadian dollar
was weak, a flood of Canadian exports accounted for 30% of the US crib market,
according to our estimates.

If Ragazzi
re-organizes itself as an import-only brand, it will be following other former
crib makers: Child Craft and Simmons. Child Craft switched to all imports in
2000 and Simmons recently shuttered its domestic plant and sold its name rights
to Delta. Delta now imports cribs from China under the Simmons
brand.

Since all this news is happening
after hours, we hope to have additional updates tomorrow. Stay
tuned.

Update 6-21-06: Ragazzi has pulled
down their web site. If you need to reach Ragazzi for parts or a warranty
question, call 888-324-7886.