Schmidt Goodman sells office supplies division to 1Source
A well-known Rochester firm celebrating its 40th anniversary is shedding part of its operation to better focus on its core business.
Schmidt Goodman is selling its office supply division to 1Source Office and Facility Supply, which is based in Memphis, Tenn. and Chaska, Minn.
"It is a good fit," said Dick Goodman, co-founder and co-owner of Schmidt Goodman. "The office supply industry has changed so much. (1Source) really understands it. Now, we can put 100 percent of all of our efforts on furniture and expanding that division."
He said that both businesses are working to make sure the change is a "seamless" one for Schmidt Goodman's customers in Minnesota, Wisconsin and Iowa. The firm's showroom at 1920 N. Broadway will remain in operation to display Schmidt Goodman's furniture lines from Steelcase, Laz-E-Boy, National and Turnstone.
On Sept. 2, 1Source will take over Schmidt Goodman's office supplies business and its base of more than 4,000 customers. Five Schmidt Goodman employees are transferring to 1Source, which plans to open a Rochester office and warehouse.
"Not one job is being lost. That was important to me. More than 30 employees will remain with us," Goodman said.
The deal began in February, when 1Source approached Schmidt Goodman.
"Having followed them for years, we've recognized and respected their long track record of success in the Rochester and southeastern Minnesota markets, said Greg McLeod, of 1Source, in a statement announcing the deal. "We feel there is a perfect fit between the cultures of our two companies and are eager to work closely with existing and new customers in the weeks and months ahead."
Due to all of the changes in the industry during the Rochester firm's 40 years, the offer to focus on its strengths was attractive to Goodman.
When he launched Schmidt Goodman on Aug. 1, 1974, with with Fred Schmidt, it was important to sell both office supplies as well as furniture, Goodman said. Schmidt has since retired, and Goodman now partners with Bill Klepper.
What started as a retail store gradually evolved over the years. Schmidt Goodman found success as a Steelcase furniture dealer and the office supplies side of the business slowly shifted to the back burner. Eventually, the company stopped store sales of office supplies and moved to catalog sales only.