The largest shareholder of infant products manufacturer Crown Crafts Inc. says that the company must improve its fiscal performance following a recent cut in revenue and earnings guidance. The Wynnefield Group is a New York–based investment group specializing in small-cap companies and owns about 17% of Crown Crafts’ outstanding common shares.
The group says that Gonzales-based Crown Crafts is too dependent on a small number of large customers and lacks purchasing power against larger competitors. Last week, Crown Crafts blamed shipment delays by a major retail customer adjusting inventory levels in lowering its sales and profit guidance. The company says such delays are not uncommon generally and that it is on target for a strong performance. For several years now Crown Crafts and Wynnefield have been battling over the direction of the company as well as the makeup of its board of directors.
