EAST RUTHERFORD, NJ--(Marketwired - Apr 1, 2014) - Kid Brands, Inc. (OTCQB: KIDB) today announced that its Board of Directors has authorized the Company to identify and evaluate a broad range of strategic and financing alternatives aimed at enhancing shareholder value. These alternatives may include addressing under-performing product lines, exploring strategic alliances, the sale or merger of the Company or one or more of its subsidiaries, or other possible transactions. Kid Brands is also exploring alternatives to strengthen its financial position, including restructuring the Company's current debt, or engaging in a recapitalization or other financing alternatives. The Company may decide to complete any combination of these or other possible strategic and/or financing alternatives.
Kid Brands is exploring these strategic and financing alternatives with the support of, and in coordination with, its current lender, Salus Capital. Kid Brands has engaged East Wind Advisors and Oppenheimer & Co. Inc. to assist its Board of Directors with respect to certain aspects of the process.
During the course of the review process, Kid Brands will continue its efforts to execute key strategic and operational initiatives previously identified as critical to improving the Company's overall business, including broadening sales distribution; introducing new, innovative products across all brands; improving margins and inventory management; implementing cost reduction programs; and retaining strong talent and skills across the organization.
The Company has not made a decision to pursue any specific strategic or financing alternative at this time, and the strategic and financial review process may not result in the approval or consummation of any specific action or transaction. If an action or transaction is approved, there can be no assurance of the terms and there is no definitive timetable for the process. The Company does not intend to provide updates or make any further comment regarding the strategic and financial review process unless a specific action is approved by the Board of Directors or the process is otherwise concluded.
The Company also announced that it has filed a Form 12b-25 with the Securities and Exchange Commission disclosing that the Company was unable to file its Annual Report on Form 10-K for the year ended December 31, 2013 on its prescribed due date, and including, among other things, the explanation for such inability.
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®); nursery furniture and related products (LaJobi®); and developmental toys and feeding, bath and baby care items with features that address the various stages of an infant's early years, including the Kokopax® line of baby gear products (Sassy®). In addition to the Company's branded products, the Company also markets certain categories of products under various licenses, including Carter's®, Disney®, Graco® 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, the possibility of a transaction arising therefrom, and the Company's belief in the nearing resolution of pending legal and regulatory issues. 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 be able to identify orconsummate an appropriate transaction to enhance shareholder value, the risk that the Company may not be able to resolve pending regulatory and legal issues on an acceptable basis, the risk that the Company may not be able to implement successfully its pending initiatives, 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, including the Form 12b-25 filed today. 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.