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From Home Furnishing Business
Kid Brands Q1 Sales off 26.1 Percent
May 21,
2014 by in Financial Reports, Industry 
Sales were down 26.1 percent compared with first-quarter 2013, when Kid Brands, Rutherford, N.J., lost $1 million, primarily the result of sales declines of 61.2 percent at CoCaLo, 36.5 percent at Kids Line and 31 percent at LaJobi.
"Our priority remains identifying and evaluating a broad range of strategic and financial alternatives aimed at improving liquidity, including addressing under-performing product lines and brands, changes to our expense structure, restructuring the company's current debt, or engaging in a recapitalization or other financing alternatives," said Executive Vice President Kerry Carr. "The company's liquidity challenges continue to impact the company's ability to meet obligations to suppliers and, in turn, fulfill customer orders, which is expected to have a material adverse impact on sales and retention of license agreements as we continue to explore strategic and financing alternatives. As we have previously disclosed, we are analyzing our product and brand profitability as well as our expense structure to help identify further opportunities to focus the business on its strengths and determine the appropriate support structure size. Further, we continue to take measures intended to improve the performance of the company both operationally and financially, including initiatives to consolidate additional back office functions. While we are not satisfied with our first quarter results, we believe we are executing the appropriate strategies for the company given current liquidity challenges facing the business."
There continues to be substantial doubt about the company's ability to continue as a going concern, including as a result of, among other things, pending failures of conditions to lending and events of default under its credit agreement which have not been waived, and the receipt of a related reservation of rights letter from the agent under the company's credit agreement.