AAA ponders US expansion
The multi-faceted company ? which operates AAA Wholesale Fabrics, home textiles outfit Belmondo and commercial and industrial fabric business M Simonson ? is looking to further its growth through expansion into the US.
CEO of the company Menachem Vorchheimer said he would lead a charge to the lucrative stars and stripes later this month with New York marked as a starting point.
Vorchheimer initially intends to stay in the US for a year and have his feelers firmly out for long term opportunities.
"The biggest issue we?ve had is that we?ve grown significantly in the last five or six years. AAA achieved sales growth of around 12 per cent last year, but as time goes on that kind of growth becomes hard to replicate; and in a country with a population as small as Australia?s, the next stage of growth inevitably seems to be offshore."
AAA already has one employee stationed in the state of Ohio and hopes to leverage links to Cleveland based fabric and craft retailer Joann Stores which, with a strong print and fashion fabric bias, is a good fit with AAA.
Vorchheimer said while other retailers with similar offers could also be considered as potential clients, Joann Stores 1000 strong outlets across the US made it an enticing prospect.
AAA was also considering the possibility of setting up a stock service company to target vertical retailers manufacturing their own designs. An acquisition of an appropriate US company was also a possibility, said Vorchheimer.
?It?s hard to call at the moment. I?ve really got to be out there in order to ?feel it and touch it? in terms of the opportunities.?
There are no plans to find a replacement for Vorchheimer, but CFO Laurence Hirschman will take on the new role of COO and oversee the day to day running of the company.