Penny Stock News From The OTC
Jul 28, 2008 8:08:00 AM
Copyright Business Wire 2008
EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--
Lenox Group Inc. (OTCBB: LENX) ("Lenox" or the "Company") today announced that it had been unsuccessful in finding a buyer for the Company as a whole, at an acceptable price, but continues to actively explore other strategic alternatives.
On January 14th, 2008, the Company announced its intention to explore strategic alternatives to enhance its growth prospects and maximize shareholder value. Since that time the Company's Board of Directors, in conjunction with its financial advisor, Berenson & Company LLC, has conducted a comprehensive and orderly review and evaluation of available strategic, operational and financial alternatives including a sale of the Company, a sale of a portion of the Company, and raising additional equity capital. While difficult market conditions have hampered this process, Lenox is continuing to explore its strategic options, including engaging in advanced discussions regarding the sale of the Department 56 business. No assurance can be given that the Company will receive any acceptable proposals for the Department 56 business or any other portions of the Company.
The Company is pursuing certain actions to strengthen its balance sheet and reduce indebtedness, and has commenced discussions with its term loan and credit facility lenders to restructure its outstanding indebtedness. The Company also stated that it was in compliance with its financial covenants under those facilities as of June 28, 2008, the end of its second fiscal quarter.
Lenox is scheduled to announce its second fiscal quarter results on August 7, 2008.