Mega reveals recall cost

Mega Brands discloses preliminary recall costs as it looks to move forward.
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Mega Brands has requested amendments to its Credit Agreement as it explores options to sell its RoseArt stationery and activities business.

The firm says it has received a positive response from its shareholders about selling RoseArt.

Marc Bertrand, president and CEO, said: "The response from stakeholders to our decision to explore the sale of our Stationery and Activities business has been positive. Our objective in requesting amendments to our Credit Agreement is to ensure an orderly process that will maximize the value of these assets."

The firm will release its fourth quarter and full-year 2007 financial results on Monday, March 31st. However, in disclosing preliminary, un-audited information, it expects charges totalling about $30 million to impacts its earnings, including some $18 million for charges relating to its recent recall of Magtastik and MagnaMan products and the 2007 recall of Magnetix items.

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