Jove Partners Raises Stake in Lifetime Brands
Dec 9 2007, 04:20 | about: LCUT
The firm also disclosed a letter to the company saying they have been encouraged by its renewed effort to increase cash generation and optimize capital allocation. The firm is also pleased by the expanded buyback and election of David Dangoor to the board of directors.
From the Letter: "we are encouraged by your company's renewed effort to increase cash generation and optimize capital allocation. We believe that the proposed inventory reduction plan will incentivize employees to limit the resources tied up in product and provide Lifetime Brands with significant improvements in working capital. We anticipate that the announced closing of marginal and unprofitable retail operations will free-up capital and allow your management team to enhance its focus on the core business. In addition, we expect that the consolidation of your company's West Coast warehouse facilities will improve operations and, combined with the sale of your former headquarters, strengthen the balance sheet. We also fully support the plan to expand Lifetime Brands' share repurchases."