Blyth has paused its plan to spin off its wholesale business group, which includes CBK, Midwest of Cannon Falls and Colonial Candle in North America, and Kaemingk, Edelman and Euro Decor in Europe.

In a Dec. 13 conference call with analysts, Blyth Chairman and CEO Bob Goergen said the company is evaluating alternatives to its previously announced plans for the wholesale division while awaiting an IRS ruling on whether the move would be tax-free. If tax-free status is not available, those plans would be cancelled, Goergen said, although he expressed optimism the tax-free status would be granted.

He told analysts the other two options for the wholesale division would be to invest in improving the business or divesting it.

Stock traders apparently looked at the announcement and the conference call in general as a positive sign. Volume jumped to 887,900 shares, more than three times recent normal trading, and the stock closed at $23.39 the day of the announcement, contrasted with 281,300 shares and a close of $20.32 Dec. 12. Blyth is traded on the New York Stock Exchange.

When the spin-off was announced to shareholders in September, it was expected to be complete in the second quarter of 2006. The Greenwich, Conn.-based designer and marketer of home fragrance and home decor told shareholders the spin-off was planned in order to devote more time and resources to direct marketing and growing its Internet channel.

For the first three quarters of 2005, net sales of $1.092 billion were approximately even with sales for the same period in 2004.

Third quarter operating profit in Blyth's wholesale segment was $21.5 million, compared with $28.4 million in 2004. Profits were significantly impacted by higher commodity costs and fuel charges, as well as lower sales in the existing wholesale business.

"These are challenging times for our industry," Goergen said. He added consumers' discretionary spending is stretched thin by increased fuel and energy costs.