Restoration Hardware's Friedman to Create New Business
CORTE MADERA, Calif.-Restoration Hardware co-CEO Gary Friedman has stepped down to create a new spinoff company called Hierarchy that will focus on the apparel, accessories, footwear and jewelry categories, part of the retailer's new product development strategy.
Friedman will be the chairman and CEO of Hierarchy. Restoration Hardware will have a minority stake in that business. Friedman will continue to be involved with Restoration Hardware in an advisory role, the company said, serving as creator and curator for Restoration Hardware "with a focus on strategy, creative and design direction."
Carlos Alberini, co-CEO of Restoration Hardware, will become sole CEO and will lead all major functions of the business. J. Michael Chu, a managing partner of Catterton Partners, which together with Tower Three Partners controls Restoration Hardware, will succeed Friedman as chairman of the board.
Under the new structure, Restoration Hardware will maintain all existing home businesses. The purpose of what Restoration Hardware is terming a reorganization is "to create a vehicle to incubate new lines of business to support the company's future growth," the company said.
The reorganization, Friedman said in a statement, "supports our goal and belief that we can curate a lifestyle well beyond the four walls of the home. It allows us to leverage our core capabilities to innovate, curate and integrate new businesses and develop a brand that transcends typical models existing today. I am proud of the strong brand we've built, excited to pursue this new paradigm and partnership with Carlos, and passionate about imagining and creating a truly special business and brand."