July 23, 2004
By: Leila Pellucci
Website: http://www.1st-in-toys.com
The Middleton Doll Company Announces Manufacturing Alliance
The Middleton Doll Company has announced plans to move the production of its Lee Middleton Original Dolls to China, the expansion of its Newborn Nursery Adoption Center concept through a new alliance with the Saks Department Store Group and a change in its dividend policy.
In addition to extensive efforts over the past three years to reduce operating expenses, the company will move production of its Artist Studio Collection(R) (ASC), high quality lifelike dolls to China to reduce manufacturing costs, beginning with the company's traditional mid-year catalog release in early July.
We regret that this day has arrived, as we will be losing many employees who have been with the company for much of our 25-year history. Yet, we are committed to maintaining the extraordinary quality of our dolls, said George R. Schonath, president and chief executive officer of The Middleton Doll Company. This decision was not taken lightly and under ordinary circumstances could have been enacted over a year ago. However, our commitment to quality dictated that we find a partner who was similarly committed to producing dolls worthy of our company's name and reputation.
The production facility selected to make ASC dolls is a current supplier who has devoted a separate unit and staff exclusively dedicated to the manufacture of these dolls. This facility began producing Newborn Nursery(R) play dolls more than a year ago and has successfully learned the unique production techniques for our ASC dolls, said Schonath.
Schonath said the new cost structure created by this manufacturing relationship provides opportunities to add unique attributes and enhancements to the company's dolls that would otherwise have not been possible. We believe there will be many long-term benefits to this relationship, including our ability to create and offer a sophisticated, yet reasonably priced doll with hand-rooted hair such as that on our Breath of Life Babies(TM), said Schonath.
Until this announcement, The Middleton Doll Company was the last major doll company that maintained its production facilities in the United States. The company will continue limited production of its dolls at its facilities in Belpre, Ohio, through the end of the year. As a result of moving production to China, the company will reduce its workforce in Belpre by 35 employees. The company will continue to operate its Belpre factory store that draws tourists from across the country.
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Leila Pellucci is a successful author and regular contributor to http://www.1st-in-toys.com.
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