Cygne Designs, Inc. announces completion of sale of its Ann Taylor sourcing business.NEW YORK--(BUSINESS WIRE)--Sept. 23, 1996--Cygne Designs, Inc. (Nasdaq:CYDS CYDS Centre for Youth Drug Studies (Australia) ) today announced the completion of its previously announced transaction with AnnTaylor Stores Corporation (NYSE NYSE See: New York Stock Exchange :ANN) regarding the sale to Ann Taylor Notable people named Ann Taylor include:
In the transaction, Cygne received 2,348,145 shares of Ann Taylor common stock and approximately $9.7 million in cash, subject to post-closing adjustments. Ann Taylor also assumed certain liabilities of the acquired sourcing operations. The cash paid to Cygne included settlement of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying for merchandise delivered by Cygne prior to the closing. The Company will use substantially all of the cash proceeds of the sale to repay a portion of its outstanding senior bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . As a result of the sale, the Company will realize a pre-tax gain of approximately $31 million. Bernard Manuel, Chairman and Chief Executive Officer of Cygne, stated that the sale of the Company's Ann Taylor sourcing business is part of the Company's previously disclosed intentions to take appropriate actions to restructure its operations and reduce liquidity pressures. Cygne Designs, Inc. is a private label designer, merchandiser and manufacturer of woven and knit career and casual clothing for women. CONTACT: Roy E. Green Chief Financial Officer Cygne Designs, Inc. 212-354-6474 or IR CONTACT: David Walke, Howard Zar, Shannon Moody Press: Stacy Berns, Michael McMullan Morgen-Walke Associates 212-850-5600 REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-752-9600 or 800-221-2462; Boston 617-236-4266 or |
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