(COMTEX) B: CML Announces Further Restructuring of its NordicTrack Su
B: CML Announces Further Restructuring of its NordicTrack Subsidiary
ACTON, MASS. (Oct. 22) BUSINESS WIRE -Oct. 22, 1998--CML Group, Inc.
(NYSE:CML) today announced further actions to restructure the Company's
NordicTrack subsidiary. Representing a continuation of the
restructuring announced on October 14, 1998, NordicTrack plans to make
further reductions in its work force, in addition to the up to 300
terminations announced previously. These new reductions, which will be
throughout the organization, will further reduce the work force by up
to an additional 500 employees, resulting in approximately 400
full-time-equivalent employees remaining at the Company. In addition,
NordicTrack plans to close most of its seasonal mall-based kiosks and a
substantial number of leased retail store locations.
CML indicated that it is taking these actions while actively reviewing
financial alternatives for its NordicTrack subsidiary; possibilities
under review include additional financing, strategic partnerships,
and/or protection under the insolvency laws. Also, CML indicated that
it is taking steps to ensure that its Smith & Hawken subsidiary is
positioned to execute its strategic plan. To that end, CML indicated
that it is in discussions with its lenders to provide Smith & Hawken
with continued and expanded financing for its retail store expansion
strategy. Its lenders have indicated their intent to provide continued
and expanded financing to Smith & Hawken subject to final agreement on
terms and conditions.
CML is a marketer of products for consumers that enhance healthy,
active lifestyles. Its products are sold under the trade names Smith &
Hawken, NordicTrack and Nordic Advantage.
This news release contains forward-looking statements relating to the
Company's future strategic prospects and opportunities, and such
statements involve risks and uncertainties. In addition to the risk
factors referred to in the Company's Annual Report on Form 10-K for the
fiscal year ended July 31, 1997, factors which may affect the Company's
future operating results include: the market's response to the
Company's new and existing products; the impact of competition in the
Company's marketplace; the ability of the Company to successfully
manage its marketing channels, including its wholesale channel; the
Company's continuing efforts to reduce costs; the Company's ability to
successfully execute the NordicTrack restructuring plan; the Company's
ability to successfully introduce new NordicTrack product lines; the
availability of capital resources; and delays in the introduction of
new products.
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CONTACT: CML Group, Inc.
Lynn Harrison, 978/264-4155
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