BROOKLYN, N.Y., Oct. 15, 2009 (GLOBE NEWSWIRE) -- Coffee Holding Co., Inc. ("Coffee Holding") (AMEX:JVA) today announced that it had completed the sale of its Brooklyn, New York location for a purchase price of $3,000,000. The sale will result in a pre-tax gain in the amount of approximately $2,150,000, which will be booked in the fourth quarter.
As previously announced, Coffee Holding closed its manufacturing operations at its Brooklyn, New York location in May 2009. The majority of its processing has been moved to its Colorado facility with its Generations Coffee Company, LLC facility in Brecksville, Ohio becoming more involved with everyday coffee processing. Coffee Holding has leased office and warehouse space located in Staten Island, New York to house the corporate offices and serve as temporary storage of its branded product.
"We believe that the closing of our Brooklyn facility will reduce long-term operating expenses, increase efficiencies and ultimately increase the profitability of the company," said Andrew Gordon, President and Chief Executive Officer. In addition, we believe that the savings and the proceeds generated from the sale will improve our cash flow and provide us with great flexibility as a company to promote our brands and explore and re-evaluate strategic opportunities to bolster both our long term top and bottom lines."
About Coffee Holding
Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family-operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company's private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.
Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements upon information available to management as of the date of this release and management's expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.