BOSTON (Thomson Financial) - Grand Toys International Ltd. said Wednesday
that it plans to reduce its printing subsidiary's China operations following
"disappointing" results over the last year, including the termination of a
"substantial" number of employees.
The Hong Kong-based toy manufacturer said the downsizing will also involve
the sale of a "significant" number of printing and other machines to pay
creditors of Hua Yang, the company's subsidiary.
Grand Toys said Hua Yang's joint venture partners are cooperating with the
restructuring and cited increased labor costs and the cost of oil as reasons for
the unaudited losses during the year.
The company expects there will be a related goodwill impairment associated
with Hua Yang and said a reliable estimate at this time is impossible.
Grand Toys shares closed at $1.16 on Tuesday.
Greg Saulnier
gs/pc
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|