Lenox Group Inc. Provides Update on Strategic Alternatives Review ...

Tag : in process
Lenox Group Inc. (OTCBB: LENX) ("Lenox" or the "Company") todayannounced that it had been unsuccessful in finding a buyer for theCompany as a whole, at an acceptable price, but continues toactively explore other strategic alternatives.

On January 14th, 2008, the Company announced its intention toexplore strategic alternatives to enhance its growth prospects andmaximize shareholder value. Since that time the Company's Board ofDirectors, in conjunction with its financial advisor, Berenson& Company LLC, has conducted a comprehensive and orderly reviewand evaluation of available strategic, operational and financialalternatives including a sale of the Company, a sale of a portionof the Company, and raising additional equity capital. Whiledifficult market conditions have hampered this process, Lenox iscontinuing to explore its strategic options, including engaging inadvanced discussions regarding the sale of the Department 56business. No assurance can be given that the Company will receiveany acceptable proposals for the Department 56 business or anyother portions of the Company.

The Company is pursuing certain actions to strengthen its balancesheet and reduce indebtedness, and has commenced discussions withits term loan and credit facility lenders to restructure itsoutstanding indebtedness. The Company also stated that it was incompliance with its financial covenants under those facilities asof June 28, 2008, the end of its second fiscal quarter.

Lenox is scheduled to announce its second fiscal quarter results onAugust 7, 2008.

About Lenox Group Inc.

Lenox Group Inc. is a market leader in quality tabletop,collectible and giftware products sold under the Lenox, Department56, Gorham and Dansk brand names. The Company sells its productsthrough wholesale customers who operate gift, specialty anddepartment store locations in the United States and Canada,Company-operated retail stores, and direct-to-the-consumer channelsincluding catalogs, direct mail, and the Internet.

Forward-looking statements

Any conclusions or expectations expressed in, or drawn from, thestatements in this filing concerning matters that are nothistorical corporate financial results are "forward-lookingstatements", within the meaning of the Private SecuritiesLitigation Reform Act of 1995, that involve risks anduncertainties. These statements are based on management'sestimates, assumptions and projections as of today and are notguarantees of future performance. All statements regarding theCompany's expected plans are forward-looking statements. The words"anticipates," "will," "expect," "intends," and words of similarmeaning identify forward-looking statements. Forward-lookingstatements also include statements of the Company's expectations orbeliefs concerning future events that involve risks anduncertainties, including, but not limited to, the Company's abilityto successfully implement a strategic alternative, the decision bythe Company to explore one or more strategic alternatives,including the ability to reach an acceptable agreement with respectto Department 56, whether the strategic alternatives could resultin increasing shareholder value, whether the Company and itslenders will reach agreement with respect to any actions that wouldstrengthen the Company's balance sheet, and other risks detailed inthe Company's periodic report filings with the Securities andExchange Commission. A further description of these risks anduncertainties and other important factors and assumptions thatcould cause actual results to differ materially from the Company'sexpectations can be found in Item 1A of the Company's Annual Reporton Form 10-K for 2007 dated March 13, 2008 and filed under theSecurities Exchange Act of 1934, and in the Company's other filingswith the Securities and Exchange Commission, all of which areincorporated herein by reference. The expectations and assumptionsreflected in such forward-looking statements may prove incorrect.The Company does not undertake any obligation to update or publishin the future any forward-looking statements.