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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 (Date of earliest event reported): October 11, 2000
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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
incorporation) Number)
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.
The Company announced on October 11, 2000, that it had signed a
definitive agreement to sell its woven products division to Mohawk Industries,
Inc. Included in the sale will be inventory, buildings, machinery and equipment
at sites in Calhoun, Dalton and Chatsworth, Georgia; Blowing Rock, North
Carolina; and Manchester, New Hampshire. The sale proceeds are estimated at $40
million, subject to adjustment based on the inventory at closing, which is
projected to occur before the end of the year. The woven products business has
annual sales of approximately $85 million and about 600 employees, most of
whom will receive offers of employment from Mohawk.
Effective October 13, 2000, John Magee resigned as Acting President of
Crown Crafts to return to his position as President of Norelli & Company, a
North Carolina-based strategy and turnaround consulting firm. As Acting
President, Magee was serving in an interim position to assist the Company's
management in achieving certain specific objectives. With the signing of the
definitive agreement with Mohawk, the refinancing of the Company's debt at the
end of August, the development and implementation of initiatives to reduce
costs, the strengthening of the Company's management team, and the redefinition
of the business model for certain businesses, the Company's immediate goals for
Mr. Magee have been achieved. It is expected that Mr. Magee will be available to
consult for Crown Crafts on a continuing basis.
On October 25, 2000 the Company gave notice to effected employees that
there will be a layoff at its Timberlake (Roxboro), North Carolina facility on
December 29, 2000. Approximately 250 of the current 388 employees are expected
to lose their jobs. The job cuts come in the manufacturing operations, as the
Company shifts its strategy to emphasize marketing and distribution and to
outsource most manufacturing.
Statements contained in this report that are not statements of
historical fact are "forward-looking statements" within the meaning of the
federal securities law. Forward-looking statements involve unknown risks and
uncertainties that may cause future results to differ materially from what is
anticipated. These risks include, among others, general economic conditions,
changing competition, the level and pricing of future orders from the Company's
customers, the Company's dependence on third-party suppliers, including some
located in foreign countries with unstable political situations, the Company's
ability to successfully implement new information technologies, and the
Company's ability to integrate its acquisitions and new licenses and to
implement operational improvements in its acquired businesses.
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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/ Carl A. Texter
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Name: Carl A. Texter
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Title: Chief Financial Officer
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Dated: October 25, 2000
