SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: NOVEMBER 25, 1998
(Date of earliest event reported)
SURREY, INC.
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(Exact name of registrant as specified in its charter)
TEXAS 001-13383 74-2138564
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(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File No. Identification No.)
13110 TRAILS END ROAD
LEANDER, TEXAS 78641
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(Address of principal executive offices) (Zip Code)
(512) 267-7172
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(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
Surrey, Inc. announced on November 23, 1998 that it have received a major
letter of commitment from Bath & Body Works, a wholly owned subsidiary of The
Limited, Inc., to purchase its products. Management values the letter of
commitment at approximately $6 million. In such letter of commitment, Bath &
Body Works notified Surrey of its intention to purchase approximately 10 million
bars of glycerin specialty soap products in the 12 month period beginning
January 1, 1999.
The letter of commitment is a letter of intent and Surrey and Bath & Body
Works will work toward a more formal agreement. We cannot assure you that we
will be able to negotiate a more formal agreement on acceptable terms, if at
all. A copy of the press release is attached as an exhibit to this filing on
Form 8-K.
Item 7 (c). Exhibits.
10 Press Release announcing receipt of major letter of commitment from
Bath & Body Works to purchase Surrey product.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Dated: November 25, 1998 Surrey, Inc.
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Registrant
By: /s/ Mark J. van der Hagen
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Mark J. van der Hagen
Vice President - Finance
and Treasurer
2
Exhibit 10
SURREY, INC. RECEIVES MAJOR PURCHASE
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COMMITMENT ORDER FROM BATH & BODY WORKS
Leander, Texas, November 23, 1998--SURREY, Inc. (NASDAQ - SOAP) announced
today that it has received a major purchase order commitment for its
high-quality transparent glycerin and specialty soap products from Bath & Body
Works, a wholly owned subsidiary of The Limited, Inc. (NYSE - LTD). Management
values the purchase order commitment at approximately $6 million. This
commitment would represent the largest single order received by the Company in
its history. The letter of commitment calls for premium transparent bar soap in
assorted colors and fragrances to be delivered to Bath & Body Works beginning in
January 1999 and continuing throughout the new year. The purchase order
commitment is a letter of intent and Bath & Body Works and Surrey are working
toward a more formal agreement. Bath & Body Works is a major retailer of
bathroom and bedroom accessories, and operates over 1100 stores nationwide.
John van der Hagen, Surrey Chairman stated, "We are extremely pleased and
gratified to receive such a sizeable letter of commitment, and from such a
prestigious company as Bath & Body Works. This event is a further indication of
Surrey's recognition as a quality and major manufacturer of high-grade soap
products by the nation's leading retailers. Furthermore, the timing couldn't be
better since our production capabilities have increased significantly with the
completion of our manufacturing facility expansion. Except for the additional
equipment needed to complete the Bath & Body Works purchase order commitment, we
are now fully prepared to meet additional demand for our products, and therefore
geared up for accelerated growth. Based on the purchase order commitment from
Bath & Body Works, we look forward to fiscal 1999 with great expectations for
our operations."
Surrey, Inc. is a manufacturer of high-quality transparent glycerin and
specialty soap products as well as a producer of a line of potpourri, a line of
high-end scented candles and certain other personal care products.
We have made statements in this press release regarding a large letter of
commitment to purchase our products, our future operations, growth, and future
results of operations. Such statements are forward-looking and therefore are
subject to certain risks and uncertainties, including those discussed below.
Forward-looking information regarding the letter of commitment and its effects
will be affected by our ability to obtain the new equipment necessary to fulfill
such order in a timely and cost effective manner, our ability to hire and train
employees to fulfill such order and our ability to efficiently manufacture the
products necessary to fulfill such order. We cannot assure you that Bath & Body
Works will not cancel such letter of commitment. A failure to successfully
complete the order may have a material adverse effect on the future results and
operations of Surrey.
