Goedeker’s, a Ballwin retailer that’s become a leading seller of appliances online, has filed for an initial public offering.
, made Wednesday, indicates that the company intends to raise $12.2 million. Shares would trade under the ticker symbol GOED.
Goedeker’s, founded in 1951 as a television repair shop in St. Louis, sells furniture, appliances and home decor from its Ballwin showroom, but 90% of its sales are online. The company has 92 employees.
Goedeker’s was family-owned until April 2019, when for $6.2 million by 1847 Holdings of New York. Douglas Moore, a former HH Gregg and Sears executive, succeeded longtime leader Steve Goedeker as chief executive last summer.
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Michael Goedeker, who had been the retailer’s chief operating officer, was terminated from that position on March 2.
The prospectus outlines a strategy to grow the business by spending more money on marketing, targeting home builders and remodeling contractors and expanding operating hours. Under Steve Goedeker’s leadership, the call center shut down at 6 p.m. on weekdays and was closed on Sundays.
Goedeker’s sales fell 8% last year to $47.6 million, and it reported a net loss of $2.5 million. The prospectus says the sales decline was “partially attributable to the transition in ownership†and also to shipping delays that were caused by working capital issues.
The company is in violation of some of its loan covenants, the document says. Proceeds from the stock offering will be used to repay debt, for advertising and as working capital.
Steve and Michael Goedeker retain a 22.5% stake in the business. The prospectus also discloses an arbitration proceeding in which 1847 Holdings claims the Goedekers owe it $809,000 for a working capital deficiency.
The company’s Ballwin showroom has been closed as a result of the coronavirus pandemic, but the company says its online sales haven’t been affected.
