EAST RUTHERFORD, NJ - Kid Brands, Inc. /quotes/zigman/569553/quotes/nls/kid KID -1.90% announced today that, in accordance with procedures of the New York Stock Exchange (the "NYSE"), the Company has notified the NYSE that it intends to submit, no later than January 28, 2013, a plan that the Company believes will demonstrate its ability to attain compliance, within 18 months, with the continued listing standards of the NYSE. Primarily as a result of the previously disclosed $45.0 million increase in the Company's non-cash valuation allowance for deferred tax assets recorded during the quarter ended September 30, 2012, which reduced the Company's stockholders' equity to $40.5 million, the Company fell short of meeting a NYSE continued listing standard because its average market capitalization was less than $50.0 million for a 30 trading-day period and its total stockholders' equity was less than $50.0 million. The NYSE notified the Company on December 14, 2012 of such shortfall.
If the NYSE accepts the Company's plan, the Company's common stock will continue to be listed on the NYSE during the 18-month cure period, subject to the compliance with other NYSE continued listing standards and quarterly review by the NYSE staff for compliance with this plan. If the plan is not submitted on a timely basis, is not accepted by the NYSE, or is accepted by the NYSE but the Company does not make progress consistent with the plan during the plan period, the Company will be subject to delisting proceedings.
Kid Brands, Inc.
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 decor, food preparation and nursery appliances, and diaper bags (Kids Line(R) and CoCaLo(R)); nursery furniture and related products (LaJobi(R)); and developmental toys and feeding, bath and baby care items with features that address the various stages of an infant's early years (Sassy(R)). In addition to the Company's branded products, the Company also markets certain categories of products under various licenses, including Carter's(R), Disney(R), Graco(R) and Serta(R). Additional information about the Company is available at www.kidbrands.com .
Source: Kid Brands Inc.
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