Contact Information: For further information, please contact: Catie Briscoe Crabtree & Evelyn Director PR Email: cbriscoe@crabtree-evelyn.com Tel: 860.928.2761 x3370 Marie Feanny Crabtree & Evelyn PR Manager Email: mfeanny@crabtree-evelyn.com Tel: 860.928.2761 x3370
U.S. Bankruptcy Court Confirms Crabtree & Evelyn's Plan of Reorganization; Emergence From Bankruptcy Anticipated in January 2010
| Source: Crabtree & Evelyn, Ltd.
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.