Welcome!

News Feed Item

Kid Brands, Inc. Announces Suspension of LaJobi Wood Furniture Operations

$4.0 Million to $6.0 Million of Annualized Savings Anticipated

EAST RUTHERFORD, NJ -- (Marketwired) -- 05/22/14 -- Kid Brands, Inc. (OTCQB: KIDB) today announced that, in connection with the Company's previously announced review of strategic alternatives, it has decided to suspend the wood furniture operations of its LaJobi business unit.

Kid Brands and Graco Children's Products Inc. have mutually agreed to discontinue their license agreement for the design, manufacture and production of cribs, changing tables, dressers and other infant and juvenile furniture, including an immediate waiver of LaJobi's obligation to pay additional guaranteed royalties. The Company and Graco will work together to the benefit of retail customers to facilitate a seamless transition of the production of Graco-branded furniture to a new licensee. As part of the suspension of LaJobi's wood furniture operations, Kid Brands plans to sell its remaining inventory of Graco, Bonavita and other wood furniture brands.

Kerry Carr, Executive Vice President, COO and CFO of Kid Brands, commented, "In working to improve Kid Brands' overall financial performance, our management team and Board of Directors are continuing to conduct a comprehensive evaluation of the Company's businesses. After a thorough review of our LaJobi business unit, we have determined that the wood furniture operations are unable to meet satisfactory financial objectives within the current business structure. Accordingly, we have made the decision to suspend these operations, which will allow us to focus our resources on other areas of our business, further right-size our expense structure and continue our efforts to improve Kid Brands' overall profitability."

Ms. Carr added, "Graco has been a wonderful business partner throughout the years of our license agreement. We recognize the strong value that our customers and consumers attribute to the Graco brand. As our partnership concludes, we are working diligently with Graco's team to preserve the brand's strong reputation in the marketplace, as well as to ensure a smooth servicing of customer orders."

Laurel Hurd, President of Graco Children's Products, Inc., commented, "Over the years, our relationship with Kid Brands and LaJobi has produced high quality products for consumers. We are working closely with the Kid Brands and LaJobi teams to seamlessly transition the business to a new licensee, while maintaining the high levels of quality and service that our customers have come to expect from Graco."

The Company anticipates that the suspension of the wood furniture operations of LaJobi will generate annualized savings of approximately $4.0 million to $6.0 million. Kid Brands expects a reduction in the work force associated with the cessation of LaJobi's wood furniture operations. Certain positions, however, are expected to be retained to help maximize value from LaJobi's assets. The Company also intends to keep its Consumer Services function active to receive and address consumer inquiries. LaJobi's warehouse and corporate office lease expires in July 2014 and will not be renewed.

Kid Brands, Inc.

Kid Brands, Inc. and its subsidiaries are leaders in the design, development and distribution of infant and juvenile branded products. Its design-led products are primarily distributed through mass market, baby super stores, specialty, food, drug, independent and ecommerce retailers worldwide.

The Company's current operating subsidiaries consist of: Kids Line, LLC; LaJobi, Inc.; Sassy, Inc.; and CoCaLo, Inc. Through these wholly-owned subsidiaries, the Company designs, manufactures (through third parties) and markets branded infant and juvenile products in a number of complementary categories including, among others: infant bedding and related nursery accessories and décor and nursery appliances (Kids Line® and CoCaLo®); developmental toys and feeding, bath and baby care items with features that address the various stages of an infant's early years, as well as a line of infant gear products (Sassy®); and mattresses and related products (LaJobi®). In addition to the Company's branded products, the Company also markets certain categories of products under various licenses, including Carter's®, Disney® and Serta®. Additional information about the Company is available at kidbrands.com.

Note: This press release contains certain forward-looking statements, including, but not limited to, statements with respect to the conduct of the Company's strategic and financial review process. Additional written and oral forward-looking statements may be made by the Company from time to time in Securities and Exchange Commission (SEC) filings and otherwise. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking words or phrases, including, but not limited to, "believe", "plan", "anticipate", "may", "potential", "should", "will", "would", "could", "might", "possible", "contemplate", "continue", "expect", "intend", and/or "seek". The Company cautions readers that results predicted by forward-looking statements, including, without limitation, those relating to our future business prospects, revenues, working capital, liquidity, capital needs, interest costs and income are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Specific risks and uncertainties include, but are not limited to, the risk that the Company may not realize the anticipated savings from the suspension of LaJobi's wood furniture operations or be able to identify or consummate other appropriate transactions or opportunities to improve the Company's overall profitability or enhance shareholder value and those set forth under Part I, Item 1A, Risk Factors, of the Company's most recent Annual Report on Form 10-K and any subsequent filings with the SEC. Forward-looking statements speak only as of the date the statements are made. Except as required under the federal securities laws and rules and regulations of the SEC, the Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

CONTACT:
FTI CONSULTING
Leigh Parrish/Daniel Haykin
212-850-5600

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
"Splunk basically takes machine data and we make it usable, valuable and accessible for everyone. The way that plays in DevOps is - we need to make data-driven decisions to delivering applications," explained Andi Mann, Chief Technology Advocate at Splunk and @DevOpsSummit Conference Chair, in this SYS-CON.tv interview at @DevOpsSummit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captur...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.