Due to the changing economic climate and unfavorable market conditions, including retailer insolvencies, weather and increased concentration of business thru buying groups and mass merchants, Kneissl & friends has experienced rapidly decreasing gross profit margins. The impact of this situation has forced the group to only concentrate on key markets in Europe.
The Kneissl & friends Board of Directors has initiated a restructuring program for all of its subsidiaries and operating units, including KDR, Inc.
The immediate impact of these restructuring efforts is the suspension of all operations in the US. KDR, Inc. will close on September 30, 2002.
The closure of KDR is the result of several factors including low liquidity from a high level of defaulted dealer payments, lack of broad dealer support and the inability of KDR to secure appropriate financing.
KDR will not deliver any preseason retailer orders. All stock on hand will be liquidated.
Further details will be issued within the coming weeks.