DENVER, July 17, 2014 (GLOBE NEWSWIRE) -- Sport-Haley Holdings, Inc. (Pink Sheets:SPOR) (the "Company" or "SHH"), a diversified holding company, today provided an update on the status of the Chromcraft Revington ("CRC", "Chromcraft") transition.
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On May 20, 2014, CRC received a technical default notice from its primary lender. Since then, CRC has been working closely with its primary lender to identify potential scenarios for fulfilling its obligations, while it continues to serve its customers and operate on a day-to-day basis.
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In June, the Company appointed Jeffrey Sockol as Chief Restructuring Officer of Chromcraft Revington. Sockol brings more than 30 years of executive leadership in transforming, repositioning and turning around manufacturing and B2B companies. His experience includes oversight and handling of operations, financial, reorganization, marketing, M&A and integration issues.
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In addition to Sockol's appointment, the Company announced that E. Michael Hanna has returned to the role of Senior Vice President of Sales.
- The Company announced that it has retained an investment banking firm to explore strategic alternatives, including soliciting potential offers for the Chromcraft Revington operations and assets.
"We continue to make progress toward defining a transition plan for Chromcraft Revington, which we believe has the potential to be a viable and profitable business," said Sam Kidston, chairman and CEO of Sport-Haley Holdings, Inc. "Since May, we have received a number of offers from interested parties in acquiring the assets and operations of CRC, and we are working closely with Chromcraft's management team to review all offers from potential investors. Based on the current level of interest, our goal is to pursue a transaction that we believe should allow CRC to return to full operations by sometime this fall."
Today, Chromcraft Revington released the following statement regarding its current operations.
"It has come to our attention that there may be inaccurate information circulating in regard to Chromcraft's current operations and status. While it is not our normal policy to respond to rumors or innuendo, it has become clear to us that clarification is necessary and warranted at this time to set the record straight.
1. Chromcraft Revington continues to operate. We are currently fulfilling orders from finished goods inventory. While we've temporarily suspended production -- which has affected the availability of some products and the timing of deliveries—our intention continues to be to fulfill all open orders from products we can sell from stock. All of our senior management and much of our support staff totaling about 30 individuals have been retained for the sole purposes of maintaining active relationships with our customers, supplying products, and staging a transformation to sell the assets and operations to well-funded investors or strategics.
2. Chromcraft has not cancelled any orders that it could fulfill from finished inventory. Our near-term goal is to return to full operations as soon as practical.
3. Chromcraft Revington continues to accept new orders through its network of more than 70 non-exclusive reps. At this time, we are accepting new orders for furniture for which we have inventory and materials immediately available to meet deadlines or where the dealer understands that the order will be filled as soon as materials are available and production schedules allow.
4. All of our sales reps are being paid on a timely basis for June and July orders. In addition, we paid $39,000 of the total $117,000 April commissions earned and have made arrangements for payment of the remaining $78,000. We are currently in the process of making arrangements for payment of May commissions, which total approximately $30,000.
5. There have been allegations that Chromcraft has shipped incomplete orders. In some cases, an order may have been broken into multiple shipments or parts of an order were delayed. Less than 8% of our total orders shipped have resulted in an incomplete order being found, and in all these cases, we issued a credit or refund to the dealer.
As previously communicated, we have established a hotline number (662-562-8203) for customers and dealers with questions about orders. In addition, customers and dealers can also email us at customers@chromrev.com. Voicemails and emails will typically be responded to within 1-2 business days.
There is no question that recent events have inconvenienced some of Chromcraft's 1,500+ customers. If you are among the dealers or customers affected, please accept our sincerest apologies. We want to hear from you, so that we can try to make it right.
In the meantime, we remain committed in our intent to fulfill all open orders and to respond as quickly and professionally as possible to all inquiries.
Thank you for your continued support and understanding."
About Sport-Haley Holdings, Inc.
Organized in 2011, Sport-Haley Holdings, Inc. is a diversified holding company focused on increasing shareholder value by maximizing intrinsic value per share over the medium- and long-term through the effective turnaround and management of its acquired companies.
About Chromcraft Revington
Headquartered in Mississippi, Chromcraft Revington® designs, manufactures and imports residential and commercial furniture marketed primarily in the U.S. The Company wholesales its residential furniture products under Chromcraft®, Cochrane®, Peters-Revington®, and CR Kids & Beyond® primary brands. It sells commercial furniture under the Chromcraft® brands. Chromcraft sources furniture from overseas suppliers, with domestic contract specialty facilities, and operates a U.S. manufacturing facility for its commercial furniture and motion based casual dining furniture in Mississippi.
This news release contains forward-looking statements, including but not limited to statements concerning the transition of its Chromcraft Revington subsidiary operation; status of its primary loan; ability to meet customers, dealers creditors and other stakeholder obligations; ability to fulfill current and existing orders; and other subsidiary operations. We also are operating within constraints imposed by our lender and are subject to restrictions they may impose on our operations. Our forward-looking statements are based on our current expectations and projections about trends affecting our businesses, industries and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Some of the risks and uncertainties that may cause actual results to differ from those expressed or implied in the forward-looking statements are described in "Risk Factors" in our filings with the Securities and Exchange Commission. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. Investors are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.