Magic Carpet Ride

It all started with a single retail rug store. In 1971, Alexander Peykar and his brothers Steven, Edmond and Paul and father Noury started selling area rugs at a small retail store in Westbury, N.Y.

When they found that they couldn’t get some of the merchandise they wanted to sell, the Peykar brothers decided to try to manufacture and import rugs themselves. They founded Nourison in 1980 (first naming it Nouri and Sons, Ltd., to sound like an old, established company, and later condensing the name to Nourison) and jumped into the world of overseas manufacturing in China and India.

Today Nourison does about $160 million a year in revenues and is the world’s largest manufacturer of handmade rugs and a major producer of broadloom carpeting. Based in Saddle Brook, N.J., the company also has showrooms in Atlanta, Las Vegas, High Point, N.C., and Zurich, Switzerland. Nourison has an additional distribution center in Calhoun, GA. for its wall-to-wall carpeting line. Recently, Robert Levin, editor-in-chief of The Report, sat down with Nourison principal Alexander Peykar to discuss the company, the demands and difficulties of manufacturing overseas, the company’s unique approach to inventory and its path to success. 

Beginnings

RL: Before you started Nourison, you owned a retail store. How did you decide to start the importing and manufacturing business?

AP: We had a retail shop in Westbury, N.Y., in the 1970s, where we learned about the industry. We sensed there were voids that other importers were not addressing. So we started bringing in some of our own rugs and it worked well. A decision was made to go into full-fledged wholesale. The store that we owned is still there, but it’s owned and operated by my sister’s family and nephew. They still do a very good business.

RL: What were the early years of Nourison like?

AP: We started in 1980, and our first few years were the most difficult. All start-up companies go through hard stages and hard times at the beginning. But it was during the Carter years and the times of 18% and 19% interest rates. Keep in mind that in our industry, you can’t survive without bank loans, because selling is easy, but getting paid is the hard part. So we had to carry the accounts receivable with interest rates that put an incredible amount of pressure on us.

RL: How has your growth been over the years?

AP: Growth has been pretty steady. We still have a lot of plans that will hopefully continue to give us growth rates that are better than the average company in our industry. We have not acquired any companies. We felt that anything that we want to acquire, we could do ourselves, and we have done so. But it’s not getting easier to do that, so if and when we come across a company that would fit our criteria, one option we have is to acquire companies that may help our growth.

RL: Can you give me an example of choices that you’ve made in terms of growing organically versus making an acquisition?