CIRI acquired a majority equity stake in OfficeSource Inc. in June. The national office furniture wholesaler is a private, venture-backed company launched in 2004 to become the first national-scale wholesaler of exclusively office furniture. Previously, the industry was dominated by regional vendors.
OfficeSource reached profitability within four years of its founding and generated annual revenues in excess of $100 million. The company operates from coast to coast and is the largest exclusive wholesaler of office furniture in the United States. However, the global recession severely impacted the office furniture market in late 2008, dramatically reducing demand, constricting credit and slowing OfficeSource’s tremendous growth.
CIRI seized the opportunity created by the recent economic turmoil and negotiated a direct investment in OfficeSource at an attractive valuation. CIRI’s direct investment will provide OfficeSource with additional operating cash to help the company regain its momentum as economic activity and demand for office furniture begin to recover. Additionally, OfficeSource’s new status as a majority Alaska Native-owned business is expected to enhance the company’s ability to sell to both private and government customers.