Ferrara Food makes announcement.EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--June 25, 1996--Eugene P. Marfuggi, president of Ferrara Food Co. Inc. announced today that the company has retained the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of law firm of Seiff & Kretz to conduct an internal investigation to determine the reasons as to the magnitude of the company's financial discrepancies in its previously reported results of operations for the nine months ended Sept. 30, 1995, the breakdown of its computer system and, its inability to locate certain supporting documents. Upon completion of its investigation, the company will be in position to file its Form 10KSB KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. for the fiscal year ended Dec. 31, 1995 and its quarterly report on Form 10QSB QSB Fading QSB Qualified Small Business (IRS category) QSB Queen Street Backpackers (Auckland, New Zealand) QSB Quality System Basics QSB Qualified Supplemental Benefit QSB Quantum Singleton Bound for the quarterly period ending March 31, 1996. Furthermore, the company believes that its preliminary results of operations for fiscal 1995 will indicate a loss from operations of approximately $15,500,000 from what it had previously reported would be $9,500,000. This increase in the loss from operations is attributed to management's desire to recognize impairment in and writeoff of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. such as goodwill, advertising credits, slotting fees A slotting fee is a fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves.[1] The fee varies greatly depending on the product, manufacturer, and market conditions. , etc. and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. for the sale of the company's wholesale food operations in June 1996. The company in its March 27 press release indicated that it had certain restructuring plans. On June 19, 1996, Colavita Pasta and Olive Oil olive oil, pale yellow to greenish oil obtained from the pulp of olives by separating the liquids from solids. Olive oil was used in the ancient world for lighting, in the preparation of food, and as an anointing oil for both ritual and cosmetic purposes. Corp., assumed the "Ferrara" brand license and acquired certain inventory from the company for an aggregate amount of approximately $1,600,000. As part of the sale, the company will be required to change its corporate name in the immediate future. Philip Marfuggi, an officer and director of the company, has tended his resignation as an officer of the company to accept a position with Colavita. The company will continue to manufacture and distribute its candy and confectionary products through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , AM Candies Inc., as well as its bakery operations located in Miami and Orlando, Fla., through its wholly owned subsidiary, New A&C Italian Bakery Inc., A&C's management stated that it has entered into agreements for its products with Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Company, United Airlines and a wholesale bakery, Butterkrust Corp., for ultimate sale to Arby's. Delivery of the products has already commenced to Disney and will commence to Arby's (Butterkrust) in the next two weeks and to United Airlines in August. The aggregate value of these agreements is anticipated to be in excess of $2,500,000. The company will also operate its 80% owned subsidiary, La Torinese USA Inc., which manufactures Italian specialty cakes. La Torinese was incorporated in December 1995 and is in the process of assembling its manufacturing and distribution facility. La Torinese anticipates initial shipments will commence in August 1996. In conjunction with the restructuring plans, management has reduced the company's current employees to approximately 240 from 320 employees - primarily in its food distribution and candy manufacturing divisions. Additionally, on May 6, 1996, Edmund Abramson resigned as a member of the board of directors subject to a definitive separation agreement which has not been finalized See finalization. . Additionally, Francesco Bolgiani resigned as a director on May 14, 1996. Ada Mercuri, the company's secretary, was elected to the board of directors on June 18, 1996 effective July 1, 1996. Management believes that its restructuring plan, when fully implemented, will result in the company becoming profitable. CONTACT: Ferrara Food Company Inc. Eugene Marfuggi, 908/651-7600 |
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