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.
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector–with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.