Playtex restructures packaging and skin care divisions

- Last updated on GMT

Related tags: Chief executive officer, Restructuring, Executive officer

As part of plans to restructure its operations Playtex Products
says it is moving to a consolidated North American structure and
restructuring its Canadian operations. The company also announced a
restructuring of its US Banana Boat Sun Care Direct Sales Delivery
organization sales force, reports Simon Pitman.

The move, which will affect approximately 85 employees in Canada and in the DSD organization, will see the company's tampon packaging facility in Arnprior, Ontario, Canada, as well as the US team responsible for the direct sales of its Banana Boat sun care products.

The company's Arnprior facility, will begin a phased shut down, with a targeted completion date of first quarter 2006. With the shut down, logistics will continue to be operated out of the company's Mississauga, Ontario facility but all product supply will be furnished through the appropriate US operation.

Production at Arnprior together with the company's Dover, Delaware operations, is being outsourced to Malaysia, something the company had previously announced in February.

The company also announced that the US Banana Boat direct sales force would be strategically aligned to focus on the its core markets.

President and Chief Executive Officer, Neil DeFeo stated, "As part of our overall strategy to reduce organizational complexity and obtain a more competitive cost structure, we are moving to a consolidated North American structure. We have also restructured and consolidated the company's sales forces, and strategically aligned our Banana Boat Sun Care business according to sales and profit drivers."

The company is due to announce it second quarter results on August 1, 2005, and will hold a conference call at 9:30 a.m. ET to discuss theresults and answer questions related to its realignment initiatives.

Playtex Products​ has been in the midst of significant restructuring in an effort to help boost flagging profits. The move is part of aims to cut cost by $12 to $14 million this year and by $22 to $24 million in 2006.

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