Crown Crafts Announces Closing of Carousel Designs
May 11 2021 - 9:30AM
Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) announced
today that it is closing the operations of its Carousel Designs,
LLC, subsidiary, effective May 21, 2021. The Carousel Designs
manufacturing facility in Douglasville, Georgia, and its
direct-to-consumer website, www.babybedding.com, will cease
operations on that date.
The Company decided to close Carousel Designs
due to high costs, declining sales and continued losses associated
with the subsidiary. Net sales for Carousel Designs declined from
$6.6 million in fiscal year 2019 to $4.8 million in fiscal year
2020, the most recently reported full fiscal year. Crown Crafts’
consolidated diluted earnings per share without Carousel Designs
would have been higher by $0.06 and $0.04 in fiscal years 2019 and
2020, respectively.
“We regret that we have had to make this
difficult decision, but it is in the best interests of all of our
stakeholders as we continue to manage Crown Crafts with a focus on
long-term profitability and expense control,” said E. Randall
Chestnut, Chairman and Chief Executive Officer of Crown Crafts.
The Company expects to record charges totaling
$2.8 million to $3.4 million in fiscal years 2021 and 2022, most of
which will be non-cash charges associated with the impairment of
long-lived assets.
Carousel Designs will work to fulfill any
customer orders placed prior to the closing date. Any customers
whose orders cannot be fulfilled will receive full refunds.
About Crown Crafts, Inc.Crown
Crafts, Inc. designs, markets and distributes infant, toddler and
juvenile consumer products. Founded in 1957, Crown Crafts is one of
America’s largest producers of infant bedding, toddler bedding,
bibs and developmental toys. The Company operates through its two
wholly owned subsidiaries, NoJo Baby & Kids, Inc., and Sassy
Baby, Inc., which market a variety of infant, toddler and juvenile
products under Company-owned trademarks, as well as licensed
collections and exclusive private label programs. Sales are made
directly to retailers such as mass merchants, large chain stores
and juvenile specialty stores. For more information, visit the
Company’s website at www.crowncrafts.com.
The foregoing contains forward-looking
statements within the meaning of the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. Such statements are based upon
management’s current expectations, projections, estimates and
assumptions. Words such as “expects,” “believes,” “anticipates” and
variations of such words and similar expressions identify such
forward-looking statements. Forward-looking statements involve
known and unknown risks and uncertainties that may cause future
results to differ materially from those suggested by the
forward-looking statements. These risks include, among others, the
impact of the COVID-19 pandemic on the Company’s business
operations, general economic conditions, including changes in
interest rates, in the overall level of consumer spending and in
the price of oil, cotton and other raw materials used in the
Company’s products, changing competition, changes in the retail
environment, the Company’s ability to successfully integrate newly
acquired businesses, the level and pricing of future orders from
the Company’s customers, the extent to which the Company’s business
is concentrated in a small number of customers, the Company’s
dependence upon third-party suppliers, including some located in
foreign countries, customer acceptance of both new designs and
newly-introduced product lines, actions of competitors that may
impact the Company’s business, disruptions to transportation
systems or shipping lanes used by the Company or its suppliers, and
the Company’s dependence upon licenses from third parties.
Reference is also made to the Company’s periodic filings with the
Securities and Exchange Commission for additional factors that may
impact the Company’s results of operations and financial condition.
The Company does not undertake to update the forward-looking
statements contained herein to conform to actual results or changes
in our expectations, whether as a result of new information, future
events or otherwise.
Contact: |
Olivia W. ElliottPresident and
Chief Operating Officer (225) 647-9124oelliott@crowncrafts.com |
Crown Crafts (NASDAQ:CRWS)
Historical Stock Chart
From May 2024 to Jun 2024
Crown Crafts (NASDAQ:CRWS)
Historical Stock Chart
From Jun 2023 to Jun 2024