BONITA SPRINGS, Fla., Jan. 12, 2024 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB:IVFH) ("IVFH", the "Company", "we", or "our"), a national seller of gourmet specialty foods to Professional Chefs, today announced that with the unanimous support of its board, the Company is restructuring its Home Gourmet e-commerce business. IVFH also announced the completion of its previously announced sale of two entities: Oasis Sales Corp and Organic Food Brokers, LLC (together dba "Grow Brand Management"). Lastly, the company also announced that it has agreed to sell its entity Haley Food Group, Inc.
As discussed during its earnings call for the third quarter of 2023, IVFH is in a stabilization phase of its business, reducing its focus and expenditures on unprofitable and non-core businesses, in order to drive new growth on its profitable Professional Chefs business. The restructuring of the Home Gourmet business entails a reduction in workforce of approximately 20 of our employees, the halt of all paid marketing associated with this business, and a 50% reduction in assortment. The Company expects the financial impact of these actions to result in a decrease of approximately $6 million in annualized revenue, and an increase in our annualized profit by about $650,000, with a one-time restructuring cost of between $100,000-$200,000.
The sale of the Grow Brand Management business will result in a reduction of about $1 million in annualized revenue, with no material impact to profits. The consideration for the Grow transaction was $225,000, inclusive of its cash balance, or $75,000 net of its cash balance. Lastly, the eventual sale of ...