CafePress Inc. announces additional restructuring and changes to its leadership team and board of directors

The Company is undertaking another restructuring initiative and is revising its previously announced estimated reductions in normalized, annual fixed costs and software development spending to $7 million from the previously announced $4 million. The Company indicated that this further 7% reduction in headcount is tailored to unify and simplify its organization and improve business performance, profitability, cash flow generation, and productivity.

Fred Durham, Co-Founder and Chief Executive Officer, said, “As previously stated, it has been our top goal for 2018 to return to profitability and to stop cash burn.  The first round of cuts made in January put us within striking distance of profitability.  With this second round, we believe we have attained the necessary balance to once again be a profitable company.  This is a major milestone.  We are committed to working as hard as ever to further improve upon this position through both growth initiatives as well as continued enhancements to cost and efficiency.”

The additional restructuring announced today is intended to reduce CafePress’ normalized, annual fixed costs and software development spending by an additional $3 million.  The Company expects to record a restructuring charge as a result of these activities in 2018 of approximately $0.6 million, primarily related to severance costs.

The Company’s restructuring activities will result in:

• The creation of a new, simplified organizational and management structure.  It will deliver cost savings and increase internal efficiencies by reducing layers of management and simplifying business structures and processes across the Company’s operations.
• The alignment of the Company’s cost structure and operational objectives to maintain operational discipline and return the Company to profitable growth.
• The reduction in the size of the Company’s Board of Directors, by two members, which will allow the Board to act, advise, and evaluate opportunities more nimbly.

In connection with the announcement, Robert D. Barton, the Company’s Chief Operating Officer, submitted his resignation, deciding to pursue other professional interests. Robert joined the Company in May 2016and led improvements and investments in the Company’s production workflow and printing platform over the last two years.  Additionally, Roger D. Shannon and Laurie Furber submitted their resignations, effective immediately, and will no longer serve as board members. Roger joined the Board of Directors in November 2016 and served as a financial expert on the Audit Committee. Laurie joined the Board of Directors in September 2017 and served on the Nominating and Corporate Governance Committee.

“Robert’s contribution to the Company’s production capabilities will always be appreciated.  We wish him great success in his future endeavors,” said Fred Durham, Chief Executive Officer.  “We are also grateful for the dedicated service of our two departing board members.  We will miss their insight and experience.”

As the Company continues to experience revenue declines related to changes in search engine algorithms that have adversely affected its search visibility and traffic on the current site, it has become increasingly critical to continue to take action that will further assure the goal of returning to profitability.

The Company will remain focused on completing a new and modern CafePress.com website, expanding retail partner channels into new marketplaces and geographies and leveraging its manufacturing platform by providing fulfillment services to other consumer-facing, on demand, custom product providers.