Form 8-K Andersons, Inc. For: Jan 17
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | January 15, 2017 | |
The Andersons, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
Ohio | 000-20557 | 34-1562374 |
_____________________ (State or other jurisdiction | _____________ (Commission | ______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
1947 Briarfield Boulevard, Maumee, Ohio | 43537 | |
_________________________________ (Address of principal executive offices) | ___________ (Zip Code) | |
Registrant’s telephone number, including area code: | 419-893-5050 | |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.05 Costs Associated with Exit or Disposal Activities.
The Andersons, Inc. (the "Company") issued a press release on January 15, 2017 announcing its plans to exit the retail business and close its remaining four retail stores in the second quarter of 2017.
The full financial impact of this closure has not been determined. A pre-tax charge in the range of $9 to $14 million is expected in the first half of 2017 for severance costs and other costs associated with the closure. The Company also anticipates the full carrying value of its inventory may not be recoverable during the store liquidation process. Gains or losses are anticipated on individual properties upon sale, however the Company is uncertain of the timing and amount of those sales.
In connection with this closure, the Company will recognize pre-tax asset impairment charges of approximately $6.5 million in the fourth quarter of 2016.
This press release is attached as exhibit 99.1 to this filing.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibit is filed with this Current Report on Form 8-K:
Exhibit No. | Description | |
99.1 | Press Release dated January 15, 2017 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
The Andersons, Inc. | ||||
January 17, 2017 | By: | /s/ Naran U. Burchinow | ||
Name: Naran U. Burchinow | ||||
Title: General Counsel & Secretary | ||||
Exhibit Index
Exhibit No. | Description | |
99.1 | Press Release dated January 15, 2017 | |
NEWS RELEASEContact: | Jim Burmeister | Date: | January 15, 2017 | |
VP, Finance & Treasurer | ||||
Phone: 419-891-5848 | ||||
E-mail: [email protected] | ||||
The Andersons to Exit Retail Business
MAUMEE, OHIO, JAN. 15, 2017 - The Andersons, Inc. (Nasdaq: ANDE) announces today its plans to exit the retail business and close its remaining four retail stores in the second quarter of 2017. The retail closings will have no impact on the Company’s grain, ethanol, plant nutrient and rail operations.
“The decision to close The Andersons stores was not easy for anyone involved,” says CEO Pat Bowe. “Choosing to cease a business that has spanned 65 years and employs about 1,050 people is tremendously difficult.”
The closing will eliminate approximately 650 positions in the Toledo area and 400 positions in Columbus, of which approximately 75 percent are part-time positions. The Company will provide employees with severance packages and outplacement services to assist them in their career transitioning.
During the past eight years the Retail Group has incurred pre-tax losses, including previous asset impairments, in excess of $20 million and closed three stores.
The full financial impact of this closure has not been determined. The Company expects to record pre-tax impairment charges on long-lived assets related to the Retail segment of approximately $6.5 million in the fourth quarter of 2016.
The Company expects to record a pre-tax charge in the range of $9 to $14 million in the first half of 2017 for severance costs and other costs associated with the closure. The Company also anticipates that the full carrying value of its inventory may not be recoverable during the store liquidation process. Gains or losses are anticipated on individual properties upon sale, however the Company is uncertain of the timing and amount of those sales.
Subsequent to the impairment charges noted above, the Retail Group’s assets at their December 31, 2016 carrying values include:
Inventory and other assets | $21.0 million |
Long-lived assets | $9.8 million |
About The Andersons, Inc.
Founded in Maumee, Ohio, in 1947, The Andersons is a diversified company rooted in agriculture conducting business across North America in the grain, ethanol, plant nutrient and rail sectors. For more information, visit The Andersons online at www.andersonsinc.com.
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The Andersons Stores Facts:
• | Original Warehouse Market opened in Maumee in 1952 |
• | Stores average 160,000 square feet |
• | Stores average 125,000 different SKUs |
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