CML Announces Further Restructuring of its NordicTrack Subsidiary.ACTON Acton, town (1990 pop. 17,872), Middlesex co., E Mass., NW of Boston; settled c.1680, inc. 1735. Among its manufactures are electrical machinery, chemicals, prefabricated houses, and precision equipment. , Mass.--(BUSINESS WIRE)--Oct. 22, 1998--CML Group, Inc. (NYSE NYSE See: New York Stock Exchange :CML 1. CML - A query language. ["Towards a Knowledge Description Language", A. Borgida et al, in On Knowledge Base Management Systems, J. Mylopoulos et al eds, Springer 1986]. 2. CML - Concurrent ML. ) today announced further actions to restructure the Company's NordicTrack subsidiary. Representing a continuation of the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). announced on October 14, 1998, NordicTrack plans to make further reductions in its work force, in addition to the up to 300 terminations announced previously. These new reductions, which will be throughout the organization, will further reduce the work force by up to an additional 500 employees, resulting in approximately 400 full-time-equivalent employees remaining at the Company. In addition, NordicTrack plans to close most of its seasonal mall-based kiosks and a substantial number of leased retail store locations. CML indicated that it is taking these actions while actively reviewing financial alternatives for its NordicTrack subsidiary; possibilities under review include additional financing, strategic partnerships, and/or protection under the insolvency insolvency Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet laws. Also, CML indicated that it is taking steps to ensure that its Smith & Hawken subsidiary is positioned to execute its strategic plan. To that end, CML indicated that it is in discussions with its lenders to provide Smith & Hawken with continued and expanded financing for its retail store expansion strategy. Its lenders have indicated their intent to provide continued and expanded financing to Smith & Hawken subject to final agreement on terms and conditions. CML is a marketer of products for consumers that enhance healthy, active lifestyles. Its products are sold under the trade names Smith & Hawken, NordicTrack and Nordic Advantage. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future strategic prospects and opportunities, and such statements involve risks and uncertainties. In addition to the risk factors referred to in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended July 31, 1997, factors which may affect the Company's future operating results include: the market's response to the Company's new and existing products; the impact of competition in the Company's marketplace; the ability of the Company to successfully manage its marketing channels, including its wholesale channel; the Company's continuing efforts to reduce costs; the Company's ability to successfully execute the NordicTrack restructuring plan; the Company's ability to successfully introduce new NordicTrack product lines; the availability of capital resources; and delays in the introduction of new products. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion