O'Sullivan to leave Australia
By Furniture Today Staff -- Furniture Today, March 14, 2005
Atlanta — O'Sullivan Inds. is saying "G'bye, mate" to its Australian operations and expects to incur $1.5 million to $2.2 million in expenses as it winds down the business, the ready-to-assemble furniture manufacturer said.
In a filing with the U.S. Securities and Exchange Commission, O'Sullivan said it has determined that sales in the region "were not sufficient to support the infrastructure required." The company does not manufacture in Australia but has a sales office, warehouse and two retail outlets there.
The company said it will incur cash expenses of $400,000 to $700,000 for severance, termination of leases and other agreements and administrative costs, and will set up a reserve of $1.1 million to $1.5 million against inventories in Australia. The operations will close by June 30, and management said it is "reviewing alternate means to service customers in the region."
