Supplier shutdown may cause financial loss for Emerson

Emerson Radio Corp. announced that one of its major suppliers has closed its manufacturing operations in the Peoples Republic of China and is not expected to reopen. The supplier provided Emerson with a broad range of audio products and is the primary or exclusive manufacturer of select items.

Emerson believes that the plant shut down will have a negative impact on the net realizable value of inventory sourced though this plant which will not exceed $850,000.

Adrian Ma, chief executive officer of Emerson Radio, commented, "While the Company may suffer some financial loss and inconvenience from the closing of this long-time supplier, we believe that we will be able to provide an uninterrupted supply of all affected products to our customer base."

Emerson Radio is headquartered in Parsippany, N.J. The Company designs, markets and licenses, worldwide, a variety of consumer electronics and home appliances including microwaves and wine coolers, clock radios, full lines of televisions and other video products, and audio and home theater products.