Grand contemplates sale
By Staff -- Playthings, 11/27/2007 10:07:00 AM
HONG KONG—Grand Toys International Ltd. said this week it has signed an outside firm, Navigant Capital Advisors, to explore the company’s strategic options, including a possible sale, after shedding two thirds of its toy-related business units.
The move was approved at the toymaker’s annual shareholders meeting on November 22. During the meeting, company principals Jeff Hsieh, Francis K. Au, Matthew T. Baile, Kenneth B. Fowler, David C.W. Howell, Kevin Murphy and Douglas Van were all re-elected directors of the company. Additionally, shareholders re-appointed BDO McCabe Lo Limited as auditors of the company.
Grand reported its 2006 numbers last month. For the year, it saw a 10 percent jump in sales to $128.8 million and a net loss of $22.5 million, down from $31.3 million in 2005. The loss included $11.3 million from continuing operations and $8.4 million from discontinued ones.
During 2006, Grand discontinued several unprofitable divisions: Grand Toys Ltd., the Canadian toy distributor; Grand Toys International Inc., the North American mass market distributor; and Gatelink, a mould manufacturer based in China. Grand also terminated various toy licenses, including its rights for Binney & Smith's Crayola dough and for various soccer action-figure licenses.
BDO McCabe Lo Limited has expressed doubt regarding Grand's ability to continue as a going concern.
Commenting on the company’s future in a press release last month announcing Gran’d 2006 results, Jeff Hsieh, CEO, noted: "Grand made significant progress in 2006 to focus on its profitable divisions and eliminate underperforming operations ... The remaining three divisions all had record-breaking years in 2006 with positive operating results. International Playthings, the North American specialty distributor, continues to increase its market share and improve its profit margins. Hua Yang, the printing and packaging group, experienced 48 percent growth in sales of its packaging products from 2005 to 2006. Kord, the party goods manufacturer, continues to produce positive EBITDA despite the significant increase in labor costs in the PRC from 2005 to 2006. Grand intends to continue its focus on these three areas."
Pictured: International Playthings' iPlay Lift-Off Rocket
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