Major Shareholder Blasts Crown Crafts

The largest shareholder of infant products manufacturer Crown Crafts Inc. says that the company must improve its fiscal performance following a recent cut in revenue and earnings guidance.

The Wynnefield Group is a New York-based investment group specializing in small-cap companies that owns about 17 percent of Crown Crafts' outstanding common shares.

The group said Monday that Gonzales-based Crown Crafts is too dependent on a small number of large customers and a lack of purchasing power against larger competitors.

On Jan. 6, Crown Crafts blamed shipment delays by a major retail customer adjusting inventory levels in lowering its sales and profit guidance.

The company said such delays are not uncommon — and Crown Crafts is on target for a strong performance.