Closure of American Greetings unit, Carlton Mexico, will cost $12M to $16M
By APThursday, September 10, 2009
Carlton Mexico closure will cost $12M to $16M
CLEVELAND — American Greetings Corp. said Thursday that the closure of its Carlton Mexico unit would cost $12 million to $16 million in severance pay, write-downs and other expenses.
Carlton Mexico distributed greeting cards, gift wrap and other items in Mexico.
The shutdown will result in a loss of 170 jobs.
The Cleveland-based greeting card company said it would spend $1 million to $2 million in employee termination costs and incur $5 million to $6 million in write-downs. It would also have $6 million to $8 million in other related charges, mostly currency translation.
American Greetings expects to record the charges during the fiscal year that ends in February 2010.
Its shares rose 6 cents to $14.02 in regular trading Thursday.
