The Forzani Group Ltd./Le Groupe Forzani Ltee
TSX : FGL

The Forzani Group Ltd./Le Groupe Forzani Ltee

September 08, 2009 06:00 ET

FGL Announces Banner Consolidation

CALGARY, ALBERTA--(Marketwire - Sept. 8, 2009) - The Forzani Group Ltd. (the "Company")(TSX:FGL) today announced its plans to consolidate its two outdoor and lifestyle banners, Coast Mountain Sports and Atmosphere, to create a single national outdoor lifestyle banner under the Atmosphere name. The consolidation is expected to require minimal capital and is scheduled to be completed by Spring 2010.

As previously announced in April 2009, the Company intends to streamline its banner count to improve efficiencies and, reduce overlap and competition between its own outlets. As its first major step toward accomplishing this initiative, the Company will convert its Coast Mountain Sports locations to the Atmosphere name. All existing Atmosphere stores will remain franchised, while the converted Coast Mountain Sports locations will remain corporate. By the targeted conversion date of Spring 2010 the Company expects to be operating 63 locations under the Atmosphere name.

In addition to simplifying the business, the Company expects efficiencies from a single national advertising program, higher sales per square foot from an enhanced product mix and extended reach, as Atmosphere will be the largest outdoor lifestyle chain in Canada. Tom Quinn, Chief Operating Officer commented "One of our main objectives in developing our current strategy was to focus efforts on banners that have the potential for good growth. With the consolidation of Coast and Atmosphere we now have the opportunity to communicate one message to the outdoor lifestyle consumer and to boost brand awareness across the country, improving the Company's share of this growing market."

In conjunction with the release, the Company invites you to listen to its teleconference call on Tuesday, September 8th, at 4:30 p.m. Eastern standard time. The conference call will also be available simultaneously and in its entirety, including presentation materials, to all interested investors and the news media through a web cast, which can be accessed on the Company's website at www.forzanigroup.com. Please visit the website at least 15 minutes prior to the indicated start time to download and install any necessary software.

Teleconference Call: To listen to the conference call, please dial one of the following numbers approximately five minutes prior to commencement:

Within Toronto: 416-644-3416

Outside Toronto: 1-800-814-4859

Replay: Should you be unable to join the conference call, an audio recording of the call will be available approximately three hours after the call until September 22, 2009.

Replay Number: 1-416-640-1917 or 1-877-289-8525 (passcode 4151541#)

All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by the Company and cannot be recorded or rebroadcast without the Company's express written consent.

This news release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. This forward-looking information relates to, among other things, the Company's growth objectives, strategic and operating initiatives, revenue, retail system sales, share buy-backs and dividend growth, and can generally be identified by the use of such words as "may", "will", "expect", "believe", "plan", "intend", "are confident" and other similar terminology, including statements concerning possible or assumed future results. Certain material factors or assumptions are applied in making statements regarding forward-looking information, and actual results may differ materially from those expressed or implied in such information. The forward-looking information in this news release is based upon material factors and assumptions that management believes are reasonable as of the date of this news release, including the successful execution of the initiatives described herein; however, the Company cannot assure actual results will be consistent with this forward-looking information. Information about material factors that could cause actual results to differ materially from expectations include, but are not limited to, the factors discussed in the Company's Management Discussion and Analysis and Annual Information Form filed with the securities regulatory authorities in Canada, available at www.sedar.com.

When relying on the forward-looking information to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves significant risks and uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. While the Company may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time.

Contact Information

  • The Forzani Group Ltd.
    Robert Sartor, CA
    Chief Executive Officer
    (403) 717-1342
    or
    The Forzani Group Ltd.
    Michael Lambert, CA
    Chief Financial Officer
    (403) 717-1666