EveryWare Global Inc (NASDAQ:EVRY) reported that its sales fell 16.6% in 4Q2014. The news comes after the company, which also owns the Anchor, and Oneida Brands filed for Chapter 11 bankruptcy protection.
The company is in plans to implement a debt for equity swap with its lenders. The company’s stock will be delisted by NASDAQ. The company does not intend to oppose the move by NASDAQ.
The company had a loss of $4.87 million compared to$14.3 million in the year ago period. Sales of the company fell 17.3% to $96.1 million. Revenue flow from all segments witnessed a decline
The Cost of sales went down 21.5% to $79.5 million for the quarter ended December 31, 2014. The decrease is due to lower product costs associated with volume decline. Gross margin as a percentage of profit was 17.3% for the quarter ending December 31, 2014 compared to 12.1% for the the year before. The increase is due to the impact of unfavorable inventory adjustment.
San Solo, the CEO of EveryWare Global Inc (NASDAQ:EVRY), stated that the decline in revenue is due to the after effects of earlier operational challenges. He further stated that the revenue and sales would improve in the future.
According to Mr. Solo, the prepackaged deal filed before bankruptcy court will help eliminate the current term loan debt and reduce cash interest going forward. He also added that the lenders have provided financing worth $40 million through the prepackaged deal. He expressed hope for better performance by the company in the short-term and success in long term.
EveryWare says that it has reached a deal with its secured lenders who are owed $248.7 million. Under the deal, the lenders will become 96% owners of EveryWare’s common stock and the other 4% will go to existing equity holders for their support of the bankruptcy deal.
