COOPER CITY, Fla., Oct. 3, 2011 (GLOBE NEWSWIRE) -- Decorator Industries, Inc. (OTC Pink:DINI), a leading supplier of interior furnishings for the hospitality, manufactured housing ("MH") and recreational vehicle ("RV") industries, today announced that it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of Florida. The company is taking this action to reduce its cost structure, conserve cash and return to profitability. The Company has retained Genovese, Joblove & Battista, P.A. as debtor's bankruptcy counsel.
"Our Company made significant cost reductions over the last three years to adjust to the declining sales," said Decorator President and Chief Executive Officer William A. Johnson. "Despite these efforts, management and the board of directors have decided to utilize the Chapter 11 restructuring process to address certain costs in a timely and orderly fashion that could not be dealt with outside of Chapter 11."
The Company emphasizes that daily operations will continue as normal throughout the restructuring process. The employees will continue to be paid and receive the same benefits as before the filing. The customers will continue to receive the high quality products they expect, when they need them and with exceptional service. The Company will continue to honor all warranty programs, rebate programs and customer deposits.
The Company will have sufficient liquidity after taking this action that it will not be necessary to seek costly debtor-in-possession financing.
"This was a difficult decision but necessary to preserve the continuity of the business for our customers and the livelihood of 225 employees," said Mr. Johnson.
STATEMENTS CONTAINED IN THIS RELEASE THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS THAT COULD DIFFER MATERIALLY FROM ACTUAL RESULTS. PRIMARY FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER FROM THOSE IN THE FORWARD-LOOKING STATEMENTS ARE THE LEVEL OF DEMAND FOR RECREATIONAL VEHICLES, MANUFACTURED HOUSING AND HOTEL/MOTEL ACCOMMODATIONS, THE GENERAL ECONOMIC CONDITIONS, THE COMPANY'S ABILITY TO RETAIN OR REPLACE ITS LINE-OF-CREDIT, INTEREST RATE FLUCTUATIONS, THE AVAILABILITY OF CONSUMER CREDIT, FUEL PRICES, COMPETITIVE PRODUCTS AND PRICING PRESSURES WITHIN THE COMPANY'S MARKETS, THE COMPANY'S ABILITY TO CONTAIN ITS MANUFACTURING COSTS AND EXPENSES, AND OTHER FACTORS.
DECORATOR INDUSTRIES, INC., FOUNDED IN 1953, DESIGNS MANUFACTURES AND SELLS INTERIOR FURNISHING PRODUCTS, PRINCIPALLY DRAPERIES, CURTAINS, SHADES, BLINDS, VALANCE BOARDS, BEDSPREADS, COMFORTERS, PILLOWS AND CUSHIONS. DECORATOR IS A LEADING SUPPLIER TO THE HOSPITALITY, MANUFACTURED HOUSING AND RECREATIONAL VEHICLE MARKETS.
CONTACT: William Johnson, President/CEO 954-436-8909