Cygne Designs, Inc. announces definitive agreement for sale of its Ann Taylor sourcing business.NEW YORK--(BUSINESS WIRE)--June 10, 1996--Cygne Designs, Inc. (Nasdaq:CYDS CYDS Centre for Youth Drug Studies (Australia) ) today announced the execution of a definitive agreement with AnnTaylor Stores Corporation (NYSE NYSE See: New York Stock Exchange :ANN) regarding the previously announced sale to Ann Taylor Notable people named Ann Taylor include:
The aggregate consideration to be paid to Cygne in the transaction consists of unregistered shares of Ann Taylor common stock having a market value of $36 million (based upon the market price of the common stock for the ten trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. prior to closing, but in no event greater than 2.5 million shares), and a cash payment in an amount equal to the tangible net book value of the fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → (but not to exceed $2,646,000) plus the tangible net book value of the inventory of Cygne's Ann Taylor Woven Division, less the amount of certain liabilities of the Division to be assumed by Ann Taylor. The closing of the transaction is subject to various conditions, including approval by the Company's stockholders, the consent and release of liens by certain of the Company's lenders, and the continuation of CAT's $40 million credit facility. It is currently anticipated that the transaction will close in August 1996, following approval by Cygne's stockholders. There can be no assurance, however, that the conditions referred to above will be satisfied, that the transaction will be consummated or, if consummated, that it will be consummated within the currently anticipated time frame. In order to facilitate the integration of CAT and Cygne's Ann Taylor Woven Division into Ann Taylor's operations, Cygne has agreed to make available for a three year period the services of Mr. Bernard Manuel, the Company's Chief Executive Officer, and Mr. Irving Benson Irving Benson was a standup comic in the Borscht Belt or Vaudeville tradition. He resembled Myron Cohen to some extent. He worked with fellow vaudevillian Milton Berle over the years, and gained a good deal of recognition as a (planted) heckler in Berle's weekly variety , the Company's President. Cygne will make available up to 30% of Messrs. Benson's and Manuel's time and will receive an aggregate fee of $450,000 per year. Ann Taylor has agreed to register the shares issued to Cygne for resale, although Cygne will be subject to certain restrictions on the timing of sales and the amount of shares which can be sold at any one time. If the February 1996 sale of the Company's GJM GJM Golden Jubilee Medal GJM Gay Japanese Male business and the proposed sale of the Company's Ann Taylor sourcing business described above had occurred on January 29, 1995, the Company's net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the year ended February 3, 1996 would have been approximately $203.6 million, which includes net sales to certain discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: customers. If the proposed transaction with Ann Taylor is consummated, the Company anticipates that its primary customer will be The Limited, Inc., although there can be no assurance in this regard. During the year ended February 3, 1996 and excluding net sales of GJM, the Company had net sales to The Limited, Inc. of approximately $113.9 million. Cygne Designs, Inc. is a private label designer, merchandiser and manufacturer of women's apparel. The Company's products include a broad range of woven and knit career and casual clothing. CONTACT: Roy E. Green Chief Financial Officer 212-354-6474 or IR CONTACT: David Walke, Howard Zar, Shannon Moody Press: Leslie Feldman Morgen-Walke Associates 212-850-5600 |
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