La Jobi logoLaJobi announced it was “suspending wood furniture operations” as a result of financial troubles at parent Kid Brands. LaJobi makes cribs under the Bonavita, Babi Italia, Europa Baby and Heidi Klum brands as well as licensed cribs for Graco and Nursery 101 brands. The company will sell off the remaining inventory.

In a joint statement, Graco said it was ending its license agreement with LaJobi and seeking a new partner to manufacturer their popular low-price cribs.

Kid Brands reported financial results on May 22 that included a sharp drop in sales and profits, including a stunning 61.2% drop in sales at CoCaLo, a nursery bedding division. LaJobi’s sales dropped 31% in the most recent quarter, as did sales of bedding line Kids Line. Kid Brands also owns the Sassy line of baby toys and gifts, which was the only division to show an increase in sales.

LaJobi’s sales have been deteriorating for a couple of years, having never recovered from the recession and management turmoil at Kid Brands. The company indicated in SEC filings that is is facing significant “liquidity challenges” and there is “substantial doubt about the Company’s ability to continue as a going concern.”

As a result of these issues, we’d do NOT recommend the purchase of LaJobi furniture, including the Graco licensed cribs, at this time. We are concerned the company will not be able to provide future service and replacement parts.