by The ceasing of operations at Oak Furniture West marks the end of an era for a nearly 50-year-old business
SAN DIEGO — The closing of one of the most well-known and respected case goods manufacturers producing product in Mexico may be occurring during one of the most challenging home furnishings downturns in recent memory.
But the closing announced this week had less to do with economic conditions than the fact that the company’s owners are set to quietly exit the business after nearly 50 years of operation. Frank Real and his wife, who started the business in 1976, are entering a well-deserved retirement having devoted countless hours to supplying bedroom, entertainment and occasional furniture for retailers around the country.
“There is obviously a combination of factors, but ultimately, my dad and my mother, who is not far behind him, are in their 80s,” said Mike Real, one of several children who have helped with the business over the years but are ultimately devoted to other career pursuits. “Yes there are economic factors, but if it was five or 10 years ago, we would just ride it out, as we have ridden out so many others. But, ultimately, it’s only fair that they get a chance to start enjoying themselves a little bit. And all the brothers, although involved, we have our own things going on too.”
Frank Real was not available for comment for this story despite several attempts to contact him through the company’s San Diego headquarters office.
However, in a statement announcing the ceasing of operations, including its 300,000 square feet of manufacturing and distribution in the Tijuana area, he extended warm thanks to the company’s many customers over the years.
“We are incredibly proud of our history and the relationships we’ve built over the decades,” said Real, the company’s chief executive officer. “This decision was not made lightly, but we believe it is the right step for our family and our future. We are excited to concentrate on our real estate and explore new opportunities within the industrial park that has been our home for so long.”
Mike Real told Home News Now that the company plans to lease its facilities in the park, although it wouldn’t be opposed to selling under the right circumstances.
“It is not our intention to sell,” he said. “As always, if the right offer came along, that’s a different conversation. But the intention is primarily to lease.”
As part of its legacy, the company will be remembered for its style and innovation-driven product in primary and youth bedroom along with home entertainment. Over the years, the company developed, marketed and sold these products with the help of respected industry veterans Karl Eulberg, a former vice president of sales and marketing, and Ken Levi, a former vice president of product development and merchandising.
But Oak Furniture West also will be remembered as one of the companies long devoted to its North American case goods manufacturing roots when many others established wood furniture sourcing in Asia.
“Our focus was always to try to keep the North American manufacturing going,” Mike Real said. “Like everyone else, we have had to import some raw materials to remain cost competitive and in some cases that were not really available from onshore sources. But all the manufacturing has by and large always been in-house.”
He also noted that the business was much different in years past when his parents started the company as it was largely competing against other domestic wood manufacturers. That dynamic shifted as many moved offshore in the late ’90s and early 2000s, creating further price competition in the market.
For a time, most notably because of the supply chain disruptions during the pandemic, many companies came back to Mexico as it didn’t suffer widespread shutdowns experienced in countries like China and Vietnam. Lead times also were much shorter because of its proximity to the U.S. market.
But once the disruptions, including high container prices, abated, many fled back to Asia. Oak Furniture West and some others in Mexico have continued doing business with the U.S. market in spite of this shift, in part because of their long-term relationships with retailers.
“It’s not been easy for anybody,” Mike Real said of the challenges since the pandemic, which for many have resulted in today’s soft retail environment. “In our eyes, it’s just one more cycle that you go through.”
But as he alluded to earlier, instead of the economy being a main factor in the decision to close, the family simply decided to pursue other paths of success, including their investments in the real estate.
“From a succession standpoint, there really just wasn’t any continuity from our internal family,” Real continued. “Without having a plan in place, it just didn’t really make sense to continue pushing through with it.”
