Bluestem Group Announces Intent to Exit Six Brands in the Orchard Portfolio
EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Jan 31, 2019--Bluestem Group Inc. (“Bluestem” or the “Company”) (OTCMKTS: BGRP) today announced that the Company has made the strategic decision to exit six of its thirteen brands: Bedford Fair, Gold Violin, Norm Thompson, Sahalie, The Tog Shop and Winter Silks. In fiscal 2018, these brands combined to generate approximately 5% of the revenue for the total Company while contributing negative EBITDA.
As part of this initiative, the Company expects to incur certain one-time cash and non-cash charges, as well as SG&A savings that are generally expected to offset the cash-related charges. The Company expects this exit initiative to be accretive to EBITDA and profitability in fiscal 2019. Additional detail will be provided during the Company’s fourth quarter earnings conference call in April.
Lisa Gavales, a member of Bluestem’s Board of Directors and interim Chief Executive Officer of the Company, commented, “Following an in-depth review of the Orchard Portfolio, we made the strategic decision to streamline the business. This will enable us to focus resources on our core Orchard portfolio brands, consisting of Appleseed’s, Blair, Drapers & Damon’s, Haband and Old Pueblo Trader. We are exploring multiple options for the brands we are exiting including discontinuation, sale or combination with an existing brand. We believe that increased focus in our most productive brands will enable us to drive future sales growth and sustained profitability for not only the Orchard Portfolio, but Bluestem as a whole.”
About Bluestem Group
Bluestem Group Inc. is a holding company whose businesses include Bluestem Brands, a national, multi-brand, online retailer of a broad selection of name-brand and private label general merchandise serving the boomer and senior demographic, generally considered age 50 and over, and low- to middle-income consumers over all age demographics through 13 retail brands that currently include: Appleseed’s, Bedford Fair, Blair, Draper’s & Damon’s, Fingerhut, Gettington, Gold Violin, Haband, Norm Thompson, Old Pueblo Traders, Sahalie, Tog Shop and WinterSilks. Complementing each brand is a large selection of merchandise with payment options that provide customers with the flexibility of paying over time. Bluestem Group is headquartered in Eden Prairie, MN. For additional information visit the Bluestem Group website at www.bluestem.com.
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CONTACT: Investor Relations:
KEYWORD: UNITED STATES NORTH AMERICA MINNESOTA
INDUSTRY KEYWORD: RETAIL FASHION SPECIALTY
SOURCE: Bluestem Group Inc.
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PUB: 01/31/2019 04:01 PM/DISC: 01/31/2019 04:01 PM