Action makes money moves
By Staff -- Gifts and Dec, 4/1/2009 8:10:00 AM
ORLANDO, Fla.—Financially strapped toymaker Action Products International said this week that US Water Treatment & Solar Energy Co., a privately owned, 21-year old New Jersey-based firm, has purchased 12.4 percent of its common stock.
The move follows the resignation earlier this month of Ron Kaplan as president and chief operating officer, and Robert Burrows as chief financial officer. At that time, Warren Kaplan became APII’s chairman and CEO while Neil Swartz, previously CEO, was named president and interim chief financial officer.
Kaplan is said to be forming “a management team of experienced profit oriented entrepreneurial type employees. In addition, significant shareholders are being recruited to help turn operations,” according to the company. The first announced result of that effort is the naming of Robert Muniz, former APII executive, as president of its Action Toys operating unit.
Commenting on Action Toys, Muniz said: "As early and challenging as it is, we've already seen a reversal in trend of daily order writing and fulfillment ratio in the 2 weeks I have led the company. The strategy is to stay focused on sales. We have great products and we are concentrating on I Dig and Curiosity Kits brand toys which have seen stronger orders as retailers seek to offer under $10 educational non-violent toys that don't have inactive children sitting and watching a TV set or a computer.”
In addition to new management, Kaplan has reduced staff, met with the company's banker and negotiated reduced operating expenses in the face of “difficulty in accessing its working capital while its lender retains customer payments thereby reducing the company's borrowings to meet updated tougher ratios of collateral securing the company's credit line.”
"This makes the challenge more difficult," said Kaplan, "but high morale amongst remaining employees counterbalances the tough spots."
The Kaplans have made a loan to the company in an effort to tide it over until “serious” banking arrangements can be made, according to the company.
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