Struggling Fortune narrows focus

December 15, 2008

Fortune Industries Inc. said this morning that it has sold all its businesses outside of human resources, a shift in strategy aimed at reducing the company's debt and making financial results less volatile.

Indianapolis-based Fortune had operated as a conglomerate, with holdings in fields ranging from wireless services to ultraviolet printing.

Financial terms of the divestiture were not immediately clear. Because the businesses were sold to affiliates of major Fortune shareholders, the company tapped an independent financial adviser to evaluate the transactions. Fortune said the adviser concluded the terms were fair to the company.

To reflect its narrowed focus, the company plans to rename itself Fortune Employer Solutions. The HR operations that remain have annual revenue of about $75 million.

Fortune shares were trading late this morning at 32 cents, down 89 percent for the year.

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