REO plans to sell some of its office furniture to tenants, as it looks to revive its revenue and compete against Amazon, the world’s biggest seller of office furniture.
REO president and chief executive officer John McPherson announced the plans Tuesday in an investor call.
In a statement, the company said it plans to offer about 3,000 office chairs, couches, chairs and tables at its leased warehouses, and it plans a number of new office fixtures that it hopes will appeal to tenants who might want to stay in a larger space or for a bigger office.
“We’re hoping to bring the value of our products back to tenants and the community,” McPhearson said.
The company has been working with tenants on the new offerings, which include two new floor plans, an interior-style seating arrangement and a new work space for tenants.
“It’s a huge shift,” said Peter Edery, managing partner at the firm.
“Reo’s been around for a very long time, and there’s a lot of work that has been done over the years.”
The company is one of several companies that have been struggling to find a sustainable business model to stay afloat in the wake of the 2008-09 recession.
In recent years, REO has struggled to compete with Amazon.com, which is now the biggest seller in the U.S. of office furnishings.
The furniture company reported a $13 billion loss in the fourth quarter of 2016.
REOL’s stock has been trading below $4 since May.
REOPER REO office furniture is not as good as the company makes it out to be.
REOTAPER REOPERTURING, LLC is a small manufacturing company based in Los Angeles.
It has been making office furniture for REO since 1998.
“They’re making products that have a lot more functionality than the ones we have now,” said Kevin O’Connell, REOL chief executive.
REOCOM REOC, LLC, a company based out of Phoenix, has been a tenant tenant of REO for almost three decades.
Its new furniture includes couches and chairs, and is designed to give the office space a more contemporary look.
“There’s a certain feeling that it’s more comfortable,” said Richard Schaller, REOCom’s chief executive, in an interview.
“And we like to think that’s something that we’ll be able to recapture.”
The firm has about 1,000 offices.