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Kid Brands Restructuring Planned

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Kid Brands board of directors has authorized the Company’s management to implement a restructuring of the operations of the company’s Kids Line and CoCaLo business according to an 8-K filing. The company anticipates this move which may better position the assets to be sold in the upcoming auction. Management authorized this restructuring as of July 9, 2014. The restructuring is expected to be completed during the third quarter of 2014, by which time the sell–down of remaining inventory is expected to be complete. The Company estimates that this decision will incur total costs of approximately $0.5 million, consisting primarily of the write–ff of certain prepaid expenses and the write–off of fixed assets. The Company expects that substantially all of these costs will be recognized as expenses in the third quarter of 2014.

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