Cree Lighting Charts Path Forward; Reaffirms Agent Relationships

The press release that Cree Lighting issued last week, seemed to raise more questions than it answered. We reached out to Cree Lighting by phone, text, and email.  We received the following responses:

Edison Report Questions

Question #1: What happens to the Racine facility as it appears it is no longer needed?  I think the Delta Finish line is very valuable and I remember that Al Ruud used to paint car parts with that technology.  I assume that Cree Lighting owns that building and think it would be very valuable, especially as manufacturers are moving back to the US.

RESPONSE: 

Cree Lighting does not own the Racine facility; it is owned by IDEAL Industries, and we operate under a lease arrangement. While we are evaluating long-term options, we do not anticipate the facility going dark in the foreseeable future. Our immediate focus is restoring delivery performance, and the building continues to offer flexibility for pilot production, product development, and potential future operational needs.

Question #2: We haven’t kept up with all of the furlough notices.  Can I assume that most employees are on furlough still.  Is it a union operation?

RESPONSE: 

Cree Lighting is not a union operation. While the furlough has been extended for two additional weeks, a substantial number of employees remain actively supporting critical functions, including order processing, technical services, and customer engagement. We remain focused on stabilizing operations in a way that supports both our employees and our customers.

Question #3: The Press release mentions a backlog, but I can’t imagine there is much of a backlog.  The reps that I talk to tell me they cancelled orders and haven’t placed new orders. Are there some exclusive Cree Lighting products that are specified and can’t be purchased anywhere else and could that be the back-orders you are referring to?

RESPONSE: 

Yes, we have a meaningful backlog, and overall demand for Cree Lighting products remains strong. This speaks to the performance, reliability, and quality associated with the Cree Lighting brand. While some short-term or discretionary projects may have been deferred or cancelled during this period, we continue to see solid demand tied to specified projects and longer-lead time applications. In many cases, our products meet specific performance requirements that are not easily substituted. 

The agreement we announced this week will better position us to meet both our current commitments and future project demand. 

Question #4: Having sold the residential business to Feit, they claimed that they owned the name Cree Lighting, but that is not correct, right?  

RESPONSE: 

We maintain a robust strategic relationship with Feit Electric and won’t comment on the specifics of the branding or intellectual property matters without Feit’s involvement.

Question #5. Have Cree Lighting agents been paid. We heard back in November that several had not been paid?

RESPONSE: 

Yes, our agents have been paid. We firmly believe agents are critical to our success, and we sincerely appreciate their professionalism and continued support during this period. They’ve been instrumental in maintaining customer relationships and will remain a critical part of our overall recovery strategy. 

Question #6: Is there anything else you want to tell me?

RESPONSE: 
This announcement reflects decisive action. We have acknowledged our operational challenges, implemented a structured recovery plan, and secured a long-term manufacturing partnership to help restore capacity and delivery performance. Our focus is on stabilizing the business, supporting our partners, and positioning Cree Lighting for sustained, disciplined growth.