Crown Crafts Concentrating Ownership
July 9, 2007-- Home Textiles Today,
Infant and juvenile bedding and accessories manufacturer Crown Crafts has taken two steps toward concentrating ownership of the already closely-held company.
First, the board of directors formed a capital committee to direct up to $6 million to repurchase outstanding shares of common stock over the next year.
The committee is chaired by William Deyo, joined by members E. Randall Chestnut (chairman, president and ceo), Steven Fox, and Zenon Nie.
The buyback will cover Series A common stock; terms and conditions of any such repurchases will be set by the committee.
Also, major Crown Crafts shareholder Wynnefield Partners Small Cap Value indicated in an SEC filing that it would nominate two of its agents to the Crown Crafts board of directors. Wynnefield and its affiliates own 14.6% of Crown Crafts, the company said. A Wynnefield principal, Nelson Obus, is one of the nominees; the other is Frederick Wasserman, assigned by Wynnefield in November 2005 as an unpaid, non-voting board observer.
The board itself was to nominate three current directors for re-election: Chestnut, Deyo, and Fox.
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