Sale an option for Successories

The continuing soft economic climate and last year’s substantial losses have led manufacturer/marketer Successories to retain investment banking and financial advisory firm Duff & Phelps. According to Successories chief financial officer John Carroll says that Duff & Phelps is assisting the supplier of motivational accessories in identifying, assessing, and pursuing strategic alternatives, which could include the formation of a strategic partnership or an outright sale.

In the meantime, Successories will continue its direct marketing focus and support its retail franchisees, but it will close all of the stores that it owns. The company-owned stores lost $1.9 million on sales of $9.4 million for the fiscal year ended Feb. 2—and Successories anticipates future losses. “We can’t get out of the retail stores quickly enough,” Carroll says.

Earlier this month, Successories eliminated 27 positions at its headquarters in Aurora, IL. Those jobs represent annualized savings of approximately $1.1 million.

For fiscal 2001, Successories suffered a net loss of $10.8 million, compared with net income of $430,000 the previous year. Sales for the year declined 21%, to $43.3 million from $53.3 million. Direct marketing sales fell 18%.

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