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Stock Market & Financial Investment News

News Breaks
March 14, 2014
12:00 EDTXOXOXO Group falls 16.3%
XO Group is down 16.3%, or $1.94, to $9.96
News For XOXO From The Last 14 Days
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October 24, 2014
06:18 EDTXOXOXO Group to cease operations at Redding, California warehouse
XO Group committed to a plan to cease operations at its warehouse in Redding, California. The company informed impacted employees on October 23, 2014, and the process of the warehouse closure is expected to be completed by end of the first quarter of 2015. This decision is the result of a rigorous examination to enhance the financial contribution of the Company’s eCommerce fulfillment operations and furthers the Company’s focused transformation to a digital marketplace. The company intends to continue to serve the eCommerce needs of its users through a registry and partner-based model for providing users with desired products and services. The decision to cease operations at the Redding warehouse took into account that the company’s manufacturing operations have experienced significant revenue declines over the past three years, and the company expected that the manufacturing operations would have continued to experience declines. Approximately 72 full-time employees and 39 part-time employees will be impacted. The actions are expected to reduce operating costs by approximately $6M-$7M, annualized, directly related to these fulfillment operations, after the completion of the warehouse closure. The company estimates that gross profit from the current eCommerce operation would have been approximately $5M in 2015. The company estimates that it will incur pre-tax costs in the aggregate amount of approximately $2.5M-$3.5M during the fourth quarter of 2014 and the first quarter of 2015. The costs to be incurred relate primarily to severance, asset impairment, accelerated lease expense and disposal costs related to the warehouse closure. Approximately $1M-$1.5M of these charges are expected to be cash-based.

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