AT THE COMPANY | AT FTI CONSULTING |
Marc S. Goldfarb Senior Vice President & General Counsel | Jennifer Milan / Daniel Haykin General Information |
201-405-2454 | 212-850-5600 |
FOR IMMEDIATE RELEASE
KID BRANDS ANNOUNCES MANAGEMENT CHANGES
East Rutherford, N.J. - September 12, 2012 - Kid Brands, Inc.
today announced several management changes.
The Company announced the appointment of Kerry Carr as
Executive Vice President and Chief
Operating Officer of the Company, effective immediately.
Raphael Benaroya, Executive Chairman of Kid Brands, Inc.
stated, "Kerry has been serving as an operational consultant
to Kid Brands for the last few months and I have had the
opportunity to work closely with her. Kerry has extensive
experience in the consumer goods sector, having served in
operational, finance, restructuring and internal audit roles.
I have personally observed her expertise and professional
manner. She will bring a high level of energy, discipline and
quality of work to her new position. Kerry has already begun
to affect favorably our inventory management and logistics,
and she is also addressing expense reduction opportunities
across the business." Ms. Carr served in various senior level
executive positions with Avon Products, Inc. from 2003 to
April 2012. Prior thereto, she worked with AT&T and served in
various capacities at The Walt Disney Company.
The Company also announced the appointment of Renee Pepys
Lowe as President of Kids Line, LLC and CoCaLo, Inc., the
Company's subsidiaries which comprise its Soft Home group,
effective immediately. Ms. Lowe founded CoCaLo and served as
its President from its acquisition by Kid Brands in April
2008 until August 2010, and prior to that since its inception
in
1998. Mr. Benaroya stated, "We are delighted to have Renee
back with us. She has an intimate knowledge of this business
sector, and a particular expertise in product, sales and
marketing. Renee will be highly focused on these areas, and
we expect her to immediately emphasize product newness and
creativity, as well as marketing and customer relationships.
I am confident she will provide the professional leadership
to move our Soft Home group forward."
The Company also announced the resignation of David C. Sabin
as President of Kids Line and CoCaLo to explore other
opportunities. Mr. Sabin held the position of President of
Kids Line since January 2010 and CoCaLo since September
2010.
Mr. Benaroya stated, "On behalf of the Board, I thank David
for his contributions to the Company. David served the
Company during a period of transition and we appreciate his
efforts on our behalf. We wish him well in his future
endeavors."
In connection with the appointment of Ms. Carr as Executive
Vice President and Chief Operating Officer of the Company,
she and the Company executed an employment agreement dated as
of September 12, 2012 (the "Carr Commencement Date").
Pursuant to such employment agreement, and as a material
inducement to Ms. Carr accepting the position with the
Company, among other things, the Company agreed, on the Carr
Commencement Date, or within 30 days thereafter, to grant Ms.
Carr stock appreciation rights ("SARs") having an aggregate
grant date fair value of not less than $500,000. The SARs
will be issued outside of the Company's Equity Incentive Plan
(the "EI Plan"), as a result of the limited number of shares
currently remaining available for grant thereunder. The SARs
may be settled in cash, common stock or a combination of
both, in the sole discretion of the Compensation Committee of
the Board, and are generally exercisable for a period of ten
years from the date of grant. The SARs will have an exercise
price equal to the closing price of the Company's common
stock on the New York Stock Exchange on the date of grant,
and will vest at a rate of 20% per year, commencing on the
first anniversary of the date of grant. The impact of various
termination events on the period of exercisability and
vesting of the SARs will be substantially identical to the
impact of such events on currently outstanding SARs under the
EI Plan ("Termination Impacts"), as described in the
narrative following the "2011 Outstanding Equity at Fiscal
Year End" table of the Company's
2012 Proxy Statement.
The terms of the employment agreement between the Company and
Ms. Carr will be described in a Current Report on Form 8-K to
be filed by the Company.
In connection with the appointment of Ms. Lowe as President
of Kids Line and CoCaLo, she and the Company executed an
employment agreement dated as of September 12, 2012 (the
"Lowe Commencement Date"). Pursuant to such employment
agreement, and as a material inducement to Ms. Lowe accepting
the position with Kids Line and CoCaLo, among other things,
the Company agreed, on the Lowe Commencement Date, or within
30 days thereafter, to grant Ms. Lowe SARs having an
aggregate grant date fair value of not less than $300,000.
The SARs will be issued outside of the EI Plan, as a result
of the limited number of shares currently remaining available
for grant thereunder. The SARs may be settled in cash, common
stock or a combination of both, in the sole discretion of the
Compensation Committee of the Board, and are generally
exercisable for a period of ten years from the date of grant.
The SARs will have an exercise price equal to the closing
price of the Company's common stock on the New York Stock
Exchange on the date of grant, and will vest at a rate of 20%
per year, commencing on the first anniversary of the date of
grant. The Termination Impacts will apply to this grant.
The terms of the employment agreement between the Company and
Ms. Lowe will be described in a Current Report on Form 8-K to
be filed by the Company.
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Kid Brands, Inc. and its subsidiaries are leaders in the
design, development and distribution of infant and juvenile
branded products. Its design-led products are primarily
distributed through mass market, baby super stores,
specialty, food, drug, independent and e-commerce retailers
worldwide.
The Company's current operating subsidiaries consist of: Kids
Line, LLC; LaJobi, Inc; Sassy, Inc.; and CoCaLo, Inc. Through
these wholly-owned subsidiaries, the Company designs,
manufactures (through third parties) and markets branded
infant and juvenile products in a number of complementary
categories including, among others: infant bedding and
related nursery accessories and décor, food preparation and
nursery appliances, and diaper bags (Kids Line® and CoCaLo®);
nursery furniture and related products (LaJobi®); and
developmental toys and feeding, bath and baby care items with
features that address the various stages of an infant's
early years (Sassy®). In addition to the Company's branded
products, the Company also markets certain categories of
products under various licenses, including Carter's®,
Disney®, Graco® and Serta®. Additional information about the
Company is available at www.kidbrands.com.
Note: This press release contains certain forward-looking statements. Additional written and oral forward-looking statements may be made by the Company from time to time in Securities and Exchange Commission (SEC) filings and otherwise. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking words or phrases including, but not limited to, "anticipate", "believe", "expect", "project", "intend", "may", "planned", "potential", "should", "will" or "would". The Company cautions readers that results predicted by forward-looking statements, including, without limitation, those relating to the Company's future business prospects, revenues, working capital, liquidity, capital needs, order backlog, interest costs and income are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Specific risks and uncertainties include, but are not limited to those set forth under Item 1A, "Risk Factors", of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, each as filed with the SEC. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
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