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Program Expected to Generate $20 Million to $25 Million in Pre-Tax Savings in Fiscal 2014
Company Continues to Take Steps to Improve Financial and Competitive Position
SANDPOINT, Idaho, Oct. 29, 2013 (GLOBE NEWSWIRE) -- Coldwater Creek Inc. (Nasdaq:CWTR) today announced a restructuring and cost reduction program that is expected to generate $20 to $25 million in pre-tax savings in fiscal 2014. This program is designed to improve the financial and competitive position of the Company by streamlining the organization, reducing expenses, and positioning the Company for enhanced efficiency and profitability. As part of this restructuring initiative, the Company has reduced its full-time corporate workforce expense by approximately 20%.
"The decision to downsize our workforce, in conjunction with our other cost reduction initiatives, was a very difficult one. However, we believe that it is a necessary step for the long-term success of the Company as we strive to right-size our infrastructure to adapt to changes in our business," said Jill Dean, President and Chief Executive Officer of Coldwater Creek. "We appreciate the many contributions of all our employees, and we will provide support to those affected during this transition period."
Coldwater Creek continues to make progress on its previously announced operational initiatives involving inventory, expense management, and store optimization. The Company expects to continue to realize further meaningful benefits from these strategies.
The Company expects to incur a pre-tax charge of approximately $3.0 million for severance and other expenses associated with the restructuring program in the fiscal third quarter of 2013.
Coldwater Creek is a leading specialty retailer of women's apparel, jewelry, and accessories. The Company was founded in 1984 in Sandpoint, Idaho, and sells its merchandise through premium retail stores across the country, online, and through its mobile applications.CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains "forward-looking statements" within the meaning of the securities laws, including statements about the Company's restructuring and cost reduction program and other operational initiatives. These statements are based on management's current expectations and are subject to a number of uncertainties, risks and assumptions that may not fully materialize or may prove incorrect. As a result, our actual results may differ materially from those expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, but are not limited to:
the risk that our restructuring and cost reduction program will not result in the expected expense savings and that these initiatives may adversely affect our other initiatives and our business;
unexpected costs or delays we may encounter with respect to our restructuring and cost reduction program, which may impact our ability to achieve anticipated savings;
our ability to attract and retain qualified employees;
as we reduce headcount and tightly control expenses, we may experience an increase in demands on our managerial, operational and administrative resources, which may adversely affect our results of operations;
and such other factors as are discussed in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which are based on current expectations and speak only as of the date of this release. We do not assume any obligation to publicly release any revisions to forward-looking statements to reflect events or changes in our expectations after the date of this release.