Note 3. DISCONTINUED OPERATIONS

9 Months Ended

Sep. 28, 2012

Discontinued Operations, Policy [Policy Text Block]

Note 3.  DISCONTINUED OPERATIONS

On July 24, 2012, the Company announced the closure of Container manufacturing at Norwalk, California of Continental Commercial Products, LLC. The Company plans to sell certain assets related to the Container division.

On September 20, 2012, the Company sold certain assets related to the Gemtex division to 2340258 Ontario, Inc. (the “Buyer”), a corporation incorporated under the laws of the Province of Ontario, for $1.0 million, $0.7 million of which will be payable in 48 monthly installments subject to certain prepayment requirements in connection with the generation of excess cash by the Buyer.  The company used the net proceeds from the transaction to reduce its outstanding balance under the PB Loan Agreement (as defined in Note 5 below).

On October 4, 2011, the Company sold substantially all assets and certain liabilities related to the DISCO division of Continental Commercial Products, LLC to DISCO Acquisition Corp., a Pennsylvania corporation and an affiliate of Cellucap Manufacturing Company, for $19.0 million, subject to pre-closing and post-closing adjustments based on working capital levels, an indemnification escrow of $475,000 and a deferred lease maintenance adjustment of $10,000 (the “Sale Event”).  The Company used net proceeds from the transaction to reduce its outstanding balance under the PNC Credit Agreement (as defined in Note 5 below).

The closure of Container manufacturing at Norwalk, California and the sale of the Gemtex and DISCO divisions met the criteria for classification as discontinued operations in accordance with GAAP; therefore, the Company has classified the results of the Container manufacturing, Gemtex and Disco divisions as discontinued operations for all periods presented. The assets sold as part of the Gemtex division and the assets expected to be sold of the Container division have been recorded as assets held for sale. Selected financial data for discontinued operations is summarized as follows (amounts in thousands):

	Three Months Ended									Nine Months Ended
	September 28, 2012									September 28, 2012
	Total			Container Manufacturing			Gemtex Division			Total			Container Manufacturing			Gemtex Division
Net sales	$	4,048		$	2,751		$	1,297		$	12,851		$	8,449		$	4,402
Operating loss - net of tax	$	(969	)	$	(163	)	$	(806	)	$	(1,488	)	$	(334	)	$	(1,154	)

	Three Months Ended										Nine Months Ended
	September 30, 2011										September 30, 2011
	Total		Container Manufacturing			Gemtex Division			Disco Division		Total		Container Manufacturing			Gemtex Division			Disco Division
Net sales	$	8,710	$	2,850		$	1,675		$	4,185	$	26,567	$	8,851		$	5,094		$	12,622
Operating income (loss) - net of tax	$	408	$	(280	)	$	(229	)	$	917	$	1,274	$	(537	)	$	(1,041	)	$	2,852

The components of assets held for sale are as follows (amounts in thousands):

	September 28, 2012						December 31, 2011
	Total		Container  Manufacturing		Gemtex  Division		Total		Container  Manufacturing		Gemtex  Division
Assets
Inventories, net	$	-	$	-	$	-	$	1,351	$	-	$	1,351
Goodwill		-		-		-		336		-		336
Property and equipment, net		564		564				968		766		202
	$	564	$	564	$	-	$	2,655	$	766	$	1,889