July 14 Office furniture maker Leggett & Platt said it is considering a divestiture of its underperforming store-fixtures business and that it expects to take an impairment charge of $108 million in the second quarter to reflect a writeoff of the goodwill associated with the business.
The performance of store fixtures business did not rebound during the second quarter as expected, with the deterioration of revenue and profitability most pronounced in May and June, the company said in a statement.
The company said it is exploring strategic alternatives, including the possible divestiture of this business unit.
The pretax charge is expected to reduce second-quarter earnings by 65 cents. (Reporting by Mridhula Raghavan in Bangalore; Editing by Don Sebastian)