DENVER, April 17, 2014 (GLOBE NEWSWIRE) -- Sport-Haley Holdings, Inc. (Pink Sheets:SPOR) (the "Company" or "SHH"), a diversified holding company, today announced that it has completed consolidation of its Chromcraft Revington ("Chromcraft" or "CRC") operations to Senatobia, Mississippi.
Following the acquisition of Chromcraft in November 2013, the Company consolidated CRC's corporate, warehouse and distribution operations to Senatobia, Mississippi.
The Company has significantly restructured CRC's operations through extensive headcount and expense reductions, improvements in operational efficiency throughout the organization, significantly restructured company leadership, and instituted effective operational and strategic planning processes to more efficiently service CRC's customers, vendors, and partners.
Additional restructuring activities included:
- Divesting its Executive Office Concepts business segment, which in 2013 accounted for more than $1 million in losses.
- Terminating in-house trucking fleet operations.
- Bringing headcount and overhead expenses in line with expected revenues.
- Engaging expertise and experienced leadership to assist management in restructuring CRC's manufacturing operations and returning them to industry leading service levels.
- Placing its distribution facility property in Delphi, Indiana for sale, with Candor Realty and subleasing its former corporate headquarters in Indiana.
The various restructuring actions management has undertaken have been and will be immediately accretive to discretionary cash flow and have enabled the company to position itself to meet customer needs.
"Over the past six months, we have made tremendous progress toward building a leaner, more focused and effective operating platform at Chromcraft," said Samuel Kidston, Chairman and Chief Executive Officer of Sport-Haley Holdings, Inc. "We believe these actions will position Chromcraft to achieve gross margins in line with industry norms by the end of 2014 and in the longer-term, achieve profitability in fiscal 2015."
In addition, Chromcraft has also retained Ariail Associates, a leading executive search firm that specializes in the furniture industry, in order to identify a seasoned executive to lead Chromcraft. This process will be industry-wide and will include internal candidates.
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
A Sport-Haley Holdings company, 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 our businesses and restructuring plans, financial and operating results, and efforts to improve our operations, customer service and strategic planning processes. 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.