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mega brands assembles magnetix recovery plan

by:Newland     2019-11-09
Montreal-in the joy of last year\'s renaming, shareholders of large brand companies(TSX: MB)
Attracted by the promise of a good time in the store.
They or management can hardly predict the roller coaster ride they will face as the company\'s finances and reputation are affected by the recall of its popular Magnetix product line.
Mark Bertrand, president of the company, admitted after the company\'s annual meeting on Thursday: \"We don\'t necessarily think it will work in this way . \".
\"Magnetix recalls that we are obviously not good for the company from a financial point of view, but we think we have done the right thing to protect the brand --
Term of brand Magnetix to ensure long healthterm as well.
But Mr. Bertrand told shareholders that management had taken decisive action to solve the problem.
The big brands made two global recalls, the second because of confusion about building safety, which was blamed for the death of a child and the injury of several others who swallowed a powerful magnet.
\"To ensure that this product is safe for consumers, we have taken every step of the way.
We have not had any events in our more than 20 years of manufacturing product history, so we take this very seriously.
\"Prior to last month\'s recall, it was reported that the old products contained in the previous recall were sold together with the new, safer design.
Only the Magnetix suit with an intake warning on the package will be returned to the market for sale to the consumer.
The product has been redesigned to ensure that the magnet does not pop out of the plastic housing.
While some retailers have resumed selling the Magnetix series, the sorting process for millions of packages removed from shelves around the world will be completed within a month, Bertrand said.
Despite the company\'s claim to support the retail business, some analysts are concerned about the lasting impact of the recall.
Anthony Zicha of Scotia Capital wrote in a recent report: \"We continue to focus on the negative publicity surrounding this product and the potential impact this may have on shelf space . \".
Bertrand told shareholders that the company faced four pending lawsuits, three of which were covered by outside insurers.
The fourth is not expected to result in significant financial costs.
It has previously been reported that the price of giant brands is $35. 2-
Millions of fees related to the Magnetix recall led to the first
A quarterly loss of $23. 9 million.
Company officials say the charge is \"the worst --
He said no additional charges were expected.
As the news of the Magnetix dilemma fades away and the rest of the company\'s business grows, tight investors will regain their support for the company, Bertrand said.
Magnetix accounts for 15 of the company\'s sales.
The company hopes to launch I-this fall-
Coaster, a magnetic roller Coaster retail product for nearly $80, has grown at the speed of MP3 players.
\"If you look at the fundamentals of the business, we are in good shape.
Our products and our innovations are well accepted.
The company\'s sales rose 547 to $1.
Its net profit fell $25 to 3 million.
From $39 to $3 million.
2005 6 million.
Chairman of Old Vic Bertrand
He told shareholders that the company is based on quality products that provide fun and educational gaming experiences, \"This global fairness with consumers will never be compromised.
\"His son, Vic, the COO of Mega, returned to Canada after the integration of the rose Arts division acquired two years ago.
The stock\'s super brand closed for $ month on Thursday. 41, with a 52-
A week range between $27. 60 and $20.
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