SOURCE: Crabtree & Evelyn, Ltd.

January 14, 2010 11:40 ET

U.S. Bankruptcy Court Confirms Crabtree & Evelyn's Plan of Reorganization; Emergence From Bankruptcy Anticipated in January 2010

WOODSTOCK, CT--(Marketwire - January 14, 2010) - Crabtree & Evelyn, Ltd. announces that the United States Bankruptcy Court for the Southern District of New York confirmed its first amended plan of reorganization (as modified, the "Plan") today. The Company anticipates that it will emerge from bankruptcy by the end of January 2010. Since the recent economic downturn, numerous U.S. retailers have filed for bankruptcy protection and only a small number of these companies have successfully reorganized. Crabtree & Evelyn is now one of those select few.

In conjunction with the Plan, upon emergence, Crabtree & Evelyn expects to close on a $26.3 million exit loan from its parent company, Kuala Lumpur Kepong Berhad. The exit financing will provide sufficient cash to make all payments under the Plan and pay amounts necessary to continue implementing Crabtree & Evelyn's new strategic business plan.

The Company has already realized many of the benefits of implementing its new business plan, including right-sizing its retail footprint by exiting 35 of its retail locations and focusing on its remaining 91 retail locations. It has also launched a new ecommerce platform, at www.crabtree-evelyn.com, which allows customers to purchase all of the Crabtree & Evelyn products they have come to love with greater ease. In addition, Crabtree & Evelyn recently introduced its new Citron Honey & Coriander Hand Therapy Collection of naturally based hand creams, cleansers, and treatments that reinforces its leadership in the ever-growing hand care category, and is re-launching its popular accessories program to complement its core offering.

"We are extremely excited about confirmation of the Plan and the fresh start we have received from our short stay in bankruptcy. The bankruptcy process has allowed us to focus on a smaller footprint of retail stores, making each one of them a distinctive experience for our customers," said Stephen W. Bestwick, Acting President who has been with the Company for over 20 years. "Crabtree & Evelyn's successful reorganization is a testament to our outstanding partnerships with our customers, employees, vendors and landlords, and we appreciate their hard work and dedication to the Company throughout this process."

"As a consumer centric organization, our goal is to make the shopping experience enjoyable and rewarding," said Alan Landau, a ten-year veteran of Johnson & Johnson who joined Crabtree & Evelyn in June as Senior Vice President of Sales and Marketing. "We have successfully refined the customer shopping experience through extensive employee retraining, a clarified merchandising strategy and focused loyalty program."

In the coming months, Crabtree & Evelyn looks forward to executing its long-term strategic business plan, including enhancing its product assortment, expanding its wholesale business division, and further refining the consumer shopping experience.

Crabtree & Evelyn was represented by Cooley Godward Kronish LLP attorneys Lawrence C. Gottlieb, Jeffrey L. Cohen and Richelle Kalnit. Clear Thinking Group LLC served as Crabtree & Evelyn's financial advisors and KPMG Corporate Finance LLC served as real estate advisors.

About Crabtree & Evelyn

A pioneer in botanical formulations for over 35 years, Crabtree & Evelyn blends the very best of nature and science, tradition and innovation, to create benefit-rich bath, body and home care. This heritage is reflected in its name: Crabtree, from the crabapple tree, the original species from which all cultivated apple trees have derived, and Evelyn from John Evelyn, the 17th century renaissance Englishman, who wrote one of the first important works on conservation.

The Company currently services approximately 3,000 wholesale accounts and operates 91 retail stores and an e-commerce site at www.crabtree-evelyn.com. Other distribution channels include hotel amenities.

Crabtree & Evelyn is available online and in more than 40 countries, with approximately 6,000 wholesale accounts and 500 retail locations worldwide.

For more information, please visit the Company website at www.crabtree-evelyn.com.

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