Twinlab Announces Layoffs 33906

January 1, 2001

2 Min Read
Twinlab Announces Layoffs

Twinlab Announces Layoffs

HAUPPAUGE, N.Y.--Recently plagued by lawsuits brought by itsshareholders and a delayed third quarter fiscal report due to an investigationinto an inventory discrepancy, Twinlab Corp. (NASDAQ:TWLB) announced Dec. 19that it planned to cut 12 percent of its workforce, or roughly 144 jobs, in aneffort to reduce costs in the midst of an "industry slowdown." Themove will result in a $500,000 charge to the company's fourth quarter. Twinlabalso plans to consolidate and streamline its direct-to-consumer channel.

This news comes after a recent flurry of bad news for Twinlab. On Nov. 15,the company filed for an extension in reporting third quarter results, whichwere delayed due to an inventory shortage in its Utah facility. Twinlab reportedthird quarter results five days later, including a 6.7-percent revenue decreasecompared to the same quarter last year, as well as a net loss of $11.1 millionor $.39 per share. These results include a $16 million charge caused by theeffects of the $8 million inventory shortage. In December, the company reportedthat it had received an amendment and credit waiver, which bought it some timeto solidify a new credit facility. Under the waiver, Twinlab has until Feb. 15to fix its credit situation. On the same day, the company announced the layoffs.

"We have been affected by a general slowdown taking place in theindustry and have determined to set rigorous new objectives for thecompany," said Ross Blechman, president and chief executive officer."The action steps outlined today are designed to capitalize on the strengthof the Twinlab brand and our premium products, as well as the resources andabilities that exist in this company."

By late in the trading day on Dec. 19, TWLB shares were down to 1-3/16, off a52-week high of 9-7/16 but up from a low of 15/16.

For more information, contact Bill Rizzardi at (631) 467-3140.

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