USA: Crown Crafts Sells Woven Products Arm For $40m
Crown Crafts, Inc (NYSE: CRW), today announced it signed a definitive agreement to sell its woven products business to Mohawk Industries, Inc (NYSE: MHK). The sale included inventory, buildings, machinery and equipment at sites in Calhoun, Dalton and Chatsworth, Georgia; Blowing Rock, North Carolina; and Manchester, New Hampshire. The sale proceeds are estimated at $40m, subject to adjustment based upon the inventory at closing, which is projected to occur before the end of the year. The woven products business has annual sales of approximately $85m and about 600 employees, most of which will receive offers of employment from Mohawk.Michael H. Bernstein, Crown Crafts' chief executive officer, said: "Selling this business was an extremely difficult decision because wovens have been the core of Crown Crafts' business for many years. However, given the changes in the textile industry, we had to consider every alternative and Mohawk's strong manufacturing position will enable them to leverage the value of these assets. We will work with Mohawk to ensure a smooth transition for our employees, customers, and suppliers. Although we expect to incur a book loss of approximately $10m on the sale, this transaction will enable us to make a substantial reduction in our debt and restructure the remaining businesses to restore profitability."
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-style gives you the widest apparel and textile market coverage.
Paid just-style members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Leonie Barrie, editor of just-style
Help test our new apparel sourcing tool.
- Hard hit Turkish industry is not knocked out
- "Power of the many" drives change at Otto Group
- China leads US apparel sources with falling prices
- Vietnam grows share of US apparel imports in 2016
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Foot Locker, Nordstrom, Carter's
- Bangladesh crackdown has cost garment sector $100m
- Inditex and H&M boycott Dhaka Apparel Summit
- Macy's will "do the right thing", says Lundgren
- JC Penney to close 140 stores amid lower sales
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022