CoolBrands suffers $19 million loss in year
November 30, 2007
by Editorial Staff
TORONTO — CoolBrands International, Inc. sustained a loss of $19,040,000 in the fiscal year ended Aug. 31, which compared with a loss of $70,182,000 during fiscal 2006. The improvement reflected the company’s decision to sell the majority of its operations during 2007. In the fourth quarter, the company suffered a loss of $1,019,000, which compared with a loss of $46,102,000 during the fourth quarter of fiscal 2006.
Net sales for fiscal 2007 fell to $93,963,000 from $359,365,000 in fiscal 2006.
During the year, Coolbrands divested or agreed to sell a number of businesses, including its Whole Fruit Sorbet and Fruit-a-Freeze Frozen Fruit Bar brands. Earlier this year, the company sold its Eskimo Pie and Chipwich Brands and Real Fruit trademark, along with Eskimo Pie soft serve brands and related food service business segment to Dreyer’s.
"Fiscal 2007 results reflect the decision of the company and its subsidiaries to sell a majority of their operations in order to eliminate the losses generated from such businesses and to raise capital to repay outstanding debt obligations," Coolbrands said.