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 16 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
- Traditional financing is a misfit for fast fashion
- Why do modern robotics elude sportswear makers?
- Trump trade policy – Who knows what he'll do?
- Planning is key to an effective inventory strategy
- How would end of NAFTA affect US apparel industry?
- US Q3 in brief - G-III Apparel, Express
- Esquel efficiency drive continues to boost brands
- Bagir exports first trousers for H&M from Ethiopia
- Film documents Cambodia garment workers' stories
- Pakistan suspends India cotton imports
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016
- Footwear Top 5 Emerging Markets Industry Guide_2016
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack