The Dixie Group has elected to discontinue its Carousel custom manufacturing line of products.
The company anticipates it will complete all customer orders by the end of the second quarter of 2015. The transaction will be accounted for as a discontinued operation.
As a consequence of implementation of the plan to discontinue operations, the company will have after-tax non-cash, asset impairment charges of approximately $1,510,000 for machinery, equipment, trade name and customer relationships in the fourth quarter of 2014. Dixie estimates it will incur after-tax discontinued operating expenses of approximately $190,000, including severance and other disposal expenses over the period in which it completes all customer obligations.
This business has generated pre-tax operating losses of over $600,000 for the year-to-date ending Sept. 27, or approximately $0.03 per share, on sales of approximately $866,000.
For more information, visit thedixiegroup.com.