Luvu Brands Expands Production Capacity

Luvu Brands, Inc. (OTCQB:LUVU) announced the order of a new CNC foam contouring system, set to double its production capacity.

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Rhea-AI Summary

Luvu Brands, Inc. (OTCQB:LUVU) announced the order of a new CNC foam contouring system, set to double its production capacity. Priced at $325,000, this machine will remove a significant bottleneck in manufacturing, supporting the growth of its brands: Liberator, Jaxx, and Avana. The system is expected to be delivered and installed by March 2021. CEO Louis Friedman emphasized that the new machine will enhance throughput and efficiency, allowing for better utilization of repurposed foam trim.

Positive

Order of a new CNC foam contouring system to double production capacity.
Expected removal of production bottleneck, enhancing throughput for existing brands.
Anticipated delivery and installation in March 2021.

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News Market Reaction – LUVU

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10/22/2020 - 09:45 AM EDT

Increases foam contouring capacity by 100%

ATLANTA, GA / ACCESSWIRE / October 22, 2020 / Luvu Brands, Inc. (OTCQB:LUVU), a designer, manufacturer and marketer of a portfolio of consumer lifestyle brands, today announced that it has ordered a new CNC foam contouring system from a European supplier for delivery in early 2021.

This foam contouring system effectively doubles the Company's current foam fabrication capacity and should remove a significant bottle-neck in the Company's production throughput. The additional capacity is needed to support the current growth of all three of the Company's major brands including, Liberator^®, Jaxx^® and Avana^®. At a cost of $325,000, this machine will be in addition to the Company's first CNC contouring system that it purchased from the same vendor in 2006. The new CNC foam contouring system has been ordered and is expected to be delivered and installed in March, 2021.

Louis Friedman, Chairman and Chief Executive Officer, commented, "Our first CNC foam contouring system from this European vendor has been a cornerstone of our production operation and has provided us with many years of trouble-free operation. The order volume for all three of our brands has grown to the point where a single machine is no longer able to keep pace. This second CNC machine will effectively double our foam fabrication throughput, increase the amount of repurposed foam trim that will be available to sell in Jaxx beanbags, and a single operator will be able to run both machines at the same time. "

About Luvu Brands

Luvu Brands, Inc. designs, manufactures and markets a portfolio of consumer lifestyle brands through the Company's websites, online mass / drug merchants and specialty retail stores worldwide. Brands include: Liberator , a brand category of iconic products for enhancing sensuality and intimacy; Avana, medical and personal PPE products and inclined bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery and chronic pain; and Jaxx, a diverse range of casual fashion daybeds, sofas and beanbags made from virgin and re-purposed polyurethane foam. All polyurethane foam products are shipped vacuum compressed to save on shipping and reduce our carbon footprint. Headquartered in Atlanta, Georgia, the Company occupies a 140,000 square foot vertically-integrated manufacturing facility and employs over 200 people. The Company's brand sites include: www.liberator.com, www.jaxxliving.com, www.avanacomfort.com plus other global e-commerce sites. For more information about Luvu Brands, please visit www.luvubrands.com.

Company Contact:

Luvu Brands, Inc.
Ronald Scott
Chief Financial Officer
770-246-6426
ron@LuvuBrands.com

SOURCE: Luvu Brands, Inc.

View source version on accesswire.com:
https://www.accesswire.com/611733/Luvu-Brands-Expands-Production-Capacity

FAQ

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What is the significance of Luvu Brands ordering a new CNC foam contouring system?

The new CNC foam contouring system will double Luvu Brands' production capacity, crucial for meeting the increased demand across its major brands.

How much did Luvu Brands invest in the new CNC foam contouring system?

Luvu Brands invested $325,000 in the new CNC foam contouring system.

When will the new CNC contouring system for Luvu Brands be delivered?

The new CNC contouring system is expected to be delivered and installed by March 2021.

Which brands will benefit from the increased foam fabrication capacity at Luvu Brands?

The increased capacity will support Luvu Brands' major brands: Liberator, Jaxx, and Avana.

Luvu Brands Expands Production Capacity