Printer Friendly

HE-RO GROUP STUDIES POTENTIAL IMPACT OF POSSIBLE TRADE SANCTIONS

 HE-RO GROUP STUDIES POTENTIAL IMPACT OF POSSIBLE TRADE SANCTIONS
 NEW YORK, Dec. 3 /PRNewswire/ -- Herbert Rounick, chairman of the He-Ro Group, Ltd. (NYSE: HRG), announced today that the company is in the process of studying the potential impact to the company of the possible imposition of trade sanctions on products originating in the Peoples Republic of China ("China") that have been proposed by the Office of the United States Trade Representative ("USTR") as a result of an impasse in negotiations between China and the United States on intellectual property issues.
 The USTR has announced that were it to determine that certain acts, policies and practices of China with respect to its protection and enforcement of intellectual property rights are unreasonable and constitute a burden and restriction on U.S. commerce, it may impose retaliatory tariffs on certain products originating in China. Included in the list of proposed products identified by the USTR as possibly being the subject of sanctions is silk women's wearing apparel, including dresses. The company manufactures certain of its silk wearing apparel in China. However, it is not possible at this time to determine whether any of the potential trade sanctions will be imposed against products originating in China, which of the group of proposed products ultimately will be the subject of such sanctions, the amount of any increase in duties to be imposed on products subject to such sanctions, and when any of such proposed sanctions would take effect. Furthermore, if the impasse in negotiations between China and the United States is overcome during the 30-day public comment period on the USTR's proposals, the investigation of China's intellectual property rights may be terminated without the imposition of any trade sanctions.
 The company has previously announced that as part of its effort to reduce its dependence on China, it is implementing a plan to cut and sew in Hong Kong approximately 15 percent of its 1992 Spring beaded evening and special occasion collections.
 The imposition of retaliatory sanctions that would substantially increase duties on silk wearing apparel originating in China could have a material adverse effect on the company's earnings in the last six months of its 1992 fiscal year. However, were these sanctions to be imposed, the company will expand its use of synthetic fabrics. Although this shift from silk to synthetic fabrics would not have a material adverse effect on the company, synthetic wearing apparel is subject to quota limitations and duties that are higher than the current duties on silk wearing apparel.
 The company will continue to monitor the situation carefully to minimize the impact of any sanctions on its future operations.
 The He-Ro Group, Ltd. manufactures and markets an extensive range of women's evening and special occasion wear, dresses, suits, blouses and sportswear. The company's products are sold under a number of licensed designer labels including Oleg Cassini, Bill Blass, Bob Mackie Boutique, Fabrice Silhouette, Oscar de la Renta Studio, J.G. Hook, and Palmer & Palmer and under the company's proprietary labels including Niteline, Pia Rucci, and D'Ore by Della Roufogali.
 -0- 12/3/91
 /CONTACT: Richard Woolwine, executive vice president of the He-Ro Group, 212-704-7259/
 (HRG) CO: The He-Ro Group, Ltd. ST: New York IN: REA TEX SU:


GK-OS -- NY017 -- 8640 12/03/91 09:53 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 3, 1991
Words:545
Previous Article:OIS OPTICAL ANNOUNCES RESIGNATION OF PRESIDENT/CEO YANIV, APPOINTMENT OF CHAIRMAN OF THE BOARD TAPP AS PRESIDENT
Next Article:VETERAN ACTOR TONY RANDALL TO TRAIN VOLUNTEER STORYTELLERS FOR GRASSROOTS CHILDREN'S LITERACY PROGRAM
Topics:


Related Articles
HE-RO GROUP SIGNS AGREEMENT TO PURCHASE CERTAIN ASSETS OF RUSS TOGS
HE-RO GROUP LTD. REPORTS RESULTS
HE-RO GROUP ANNOUNCES DEATH OF CHAIRMAN AND CEO HERBERT ROUNICK
HE-RO GROUP ANNOUNCES BOARD APPOINTMENTS
HE-RO GROUP APPOINTS HAROLD BLATTER
HE-RO GROUP NAMES RAYMOND WAI-MAN LAU GENERAL MANAGER -- HONG KONG BRANCH
HE-RO GROUP RESTRUCTURES $3.2 MILLION LOAN
HE-RO GROUP NAMES SAM D. KAPLAN CHIEF FINANCIAL OFFICER
HE-RO GROUP ANNOUNCES ENGAGEMENT OF ANDERSEN WORLDWIDE -- CORPORATE FINANCE AS FINANCIAL ADVISOR
Oleg Cassini and Investment Partner to Acquire He-Ro Group

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters