Crown Crafts has buyer for Churchill Weavers
January 19, 2007-- Home Textiles Today,
Gonzales, La. – Crown Crafts Inc. said it has entered into a non-binding letter of intent to sell its Churchill Weavers division to Bedford Cottage, LLC.
The letter of intent provides that Bedford Cottage will purchase all of Churchill's assets, except land and buildings (which will be leased to Bedford Cottage concurrent with the purchase of Churchill by Bedford Cottage), and will assume Churchill's current liabilities.
Manchester, N.H.-based Bedford Cottage, which specializes in decorative throws and knit products, was launched in 2005. Churchill Weavers was founded more than 80 years ago, and has been part of Crown Crafts for a decade.
Crown Crafts said, “Churchill has experienced a continuous decline in sales and incurred operating losses for fiscal year 2006 and the first six months of fiscal year 2007 of $402,000 and $341,000, respectively.” While costs have been slashed, sales have not grown, the company said, adding, “Management has now determined that if a sale is not completed by the expiration of the letter of intent on February 28, 2007 , the company will begin the process of liquidating Churchill.”
Crown Crafts chairman, president and ceo E. Randall Chestnut said, "We have carefully examined all of our alternatives and believe that sale or liquidation is in the best interest of the company."
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