More warehouse space for ever-growing Treeforms Amish Furniture, Inc.

It might be hard to believe that there isn't enough elbow-room in Alaska, but for Treeforms Amish Furniture, Inc. it was true. They are a constantly growing business, and while hardwood furniture is sturdy and beautiful, it takes up a lot of space.

Treeforms sells high quality American made furniture. It is a continuation of another furniture store established by Mark Watson in 1995. Lori and David Meril met and worked there, but it was closed upon Mark's death in 2000. The Merils started their store in 2001.

They opened in Wasilla, a rural Alaskan community. By the end of their second year they had reached $1,000,000 in sales. Customers were being drawn from Wasilla and its surrounding Valley region, Anchorage, Fairbanks, Juneau, Homer, and places in between.

In 2004 they relocated their central warehouse to Anchorage and in 2006 moved the Anchorage operation into an even larger facility. The Anchorage facility is both a showroom store with a connected warehouse.

In spring of 2009 they negotiated their lease agreement at the Wasilla location and were able to remodel and move into a showroom that is now double in size. Still, "We were in desperate need of a larger warehouse," recalled Lori Meril.

They eventually expanded their product line to include leather furniture. Morgan's Home Furnishings, a specialty leather furnishings store and one of their primary competitors, was closing. Treeforms took over Morgan's leather line. They used loans from Northrim and Evergreen Business Capital to purchase Morgan's existing warehouse facility.

Lori Meril stated, "The loans permitted us to purchase a larger warehouse which allowed us to grow, carry more "in stock" merchandise, create more jobs, and operate out of a larger warehouse, decreasing errors and damaged product." She thinks the most beneficial aspects of the 504 loan are its low interest rate and the long-term business planning it allows.

Barbara Gill, Evergreen Business Capital's loan officer in Alaska, remembered the old space, "I toured their existing warehouse before the purchase of the new warehouse. It was packed so full you could hardly move around. To get to a particular piece of furniture you had to move several items first so that you could maneuver the stairs get to it. Moving large wood items time after time subjects them to risk of damage. The packed warehouse also meant that they could not keep a growing level of inventory to meet their increasing demand. They also could not take advantage of volume discounts or special offers from vendors. They were totally maxed out on inventory space. Sometimes they were even unable to unload a newly delivered trailer of furniture and had to keep it in a rented Connex on the lot until they had more room or could rearrange and squeeze it in. That, coupled with the unique logistics of shipping to Alaska and the higher freight costs, did not allow them to exercise any kind of efficiencies with regard to inventory purchases."

The new building is a warehouse and distribution center for their growing business. They continue to operate their Wasilla showroom and the existing Anchorage showroom. The new facility is a centralized distribution center for the other locations.

"Working with Evergreen was a wonderful experience. Our loan officer, Barbara Gill, was very patient, knowledgeable and we highly recommend her to anybody," said Lori. "Evergreen will take care of you!"

"Lori and David are hardworking, dedicated people who have high standards for their business and for the products they sell. They complement each other with their individual business skills and strengths. They know their business inside and out; there was not a single question that they were unable to answer," said Barbara Gill.

"I spoke with the Merils after their loan closing; they were moving inventory into the building the very next day. Their relief over finally having additional space was obvious. They are very happy with their new facility, with their banker, Jesse Janssen at Northrim bank, with Evergreen, and with the SBA 504 loan program."

"I am looking forward to watching their continued growth and hope to work with them on any future expansion plans."