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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 21, 1996
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CROWN CRAFTS, INC.
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(Exact name of registrant as specified in its charter)
Georgia 1-7604 58-0678148
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
1600 RiverEdge Parkway, Suite 200, Atlanta, Georgia 30328
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (770) 644-6400
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ITEM 5. OTHER EVENTS.
Attached hereto as Exhibit 99.1 and incorporated herein by reference is a
copy of a press release issued by the Registrant on November 21, 1996 relating
to a product recall.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
Exhibit 99.1 Press Release dated November 21, 1996.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CROWN CRAFTS, INC.
By: /s/ PAUL A. CRISCILLIS, JR.
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Name: Paul A. Criscillis, Jr.
Title: Vice President and
Chief Financial Officer
Dated: November 26, 1996
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EXHIBIT INDEX
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Exhibit No. Exhibit Description Page No.
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99.1 Press Release dated November 21, 1996
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EXHIBIT 99.1
[CROWN CRAFTS, INC. LETTERHEAD]
November 21, 1996
FOR IMMEDIATE RELEASE
CROWN CRAFTS AND HANS BENJAMIN ANNOUNCE
RECALL FROM RETAILERS OF HANS BENJAMIN FURNITURE PRODUCTS
Atlanta, Georgia -- Crown Crafts, Inc. (NYSE:CRW) and its 51-percent-owned
subsidiary, Hans Benjamin Furniture, Inc., today announced a nationwide
voluntary recall from retailers of all furniture products manufactured by Hans
Benjamin. In addition, the companies have suspended shipments pending an
internal investigation of certain labeling issues. Crown Crafts preliminarily
estimates that a pretax charge of between $1.9 million and $2.5 million ($0.21
to $0.26 per share after income taxes) will be made in its fiscal 1997 third
quarter ending December 29, 1996, to cover the anticipated direct costs of the
recall and other related costs.
These voluntary decisions resulted from an internal investigation precipitated
by a statewide withhold-from-sale order recently issued by the California
Bureau of Home Furnishings and Thermal Insulation. The order, based on tests
conducted by the Bureau, states that a line of juvenile foam-filled furniture
manufactured by Hans Benjamin did not comply with a California flammability
standard. The order, which was received October 28, 1996, also states that the
labels on the products incorrectly represent that the California standard is
met.
"Immediately after the order was received, Hans Benjamin commenced its internal
investigation and began to contact its California customers to facilitate
removal of the products from sale," stated Todd More, President of Hans
Benjamin. "We are continuing to cooperate with California authorities."
The internal investigation revealed that some Hans Benjamin juvenile furniture
products shipped to locations other than California may have been similarly
mislabeled. It also revealed that some of Hans Benjamin's other products -
wood frame stools, benches, ottomans, and similar products - may have the same
mislabeling problem.
MORE
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On November 12, 1996, Hans Benjamin notified the U.S. Consumer Product Safety
Commission of the mislabeling issue.
The voluntary recall from retailers announced today applies to all Hans
Benjamin furniture products in the hands of retailers in 49 states. The
products include both juvenile foam furniture and wood frame benches, stools,
ottomans, and similar products. It does not apply to products in California
which continue to be held off sale pursuant to the Bureau's order.
Founded in 1957, Atlanta-based Crown Crafts, Inc. is a leading designer,
manufacturer and marketer of a broad line of home textile furnishings and
accessories. Crown Crafts' principal products are adult and infant bed
coverings and accessories, and throws. Crown Crafts purchased a 51-percent
interest in Hans Benjamin Furniture, Inc. in January 1994. In the last 12
months, Hans Benjamin's sales have constituted less than one percent of Crown
Crafts' consolidated sales.
Contact: Paul A. Criscillis, Jr.
Vice President, Chief Financial Officer
(770) 644-6230
