Russ Berrie and Company, Inc. (Oakland, N.J.) announced, in connection with its restructuring plan, the closure of its Petaluma, Calif. distribution center effective June 30, 2006. The closure will eliminate 40 positions and will result in a pre-tax restructuring charge of $1.6 million. In a news release company executives said that they anticipate annualized savings of approximately $1.6 million as a result of this action.
"In accordance with our initiatives to align our expense structure with current business levels and at the same time service the needs of our customers in a more streamlined and efficient manner, we are consolidating our domestic gift warehousing and distribution into a single existing facility. This represents another significant step in implementing our restructuring plan," said president and CEO Andy Gatto.
For the twelve months ended December 31, 2004, the company reported consolidated net sales of $266 million, down $64 million or 19% compared to the prior year, and a net loss of $20.0 million.
Known for its teddy bears and other plush animals,Russ Berrie designs, develops, and distributes a variety of gift, infant and juvenile products to specialty and mass-market retailers worldwide. Founded in 1963 by Russ Berrie from a rented garage in New Jersey, today the company operates offices, showrooms, and distribution centers all over the world and trades on the NYSE under the symbol RUS.