ORGANIK CUTBACKS A CLOTHES CALL; CEO DOESN'T COTTON TO MANUFACTURING-METHOD COSTS.Byline: Deborah Adamson Daily News Staff Writer The chief executive of Organik Technologies, who was hired to revive the bankrupt company, said Wednesday that the company will have to shift gears since its cotton-fabric manufacturing process is too costly to use. Daniel Lezak, a turnaround expert who joined Calabasas-based Organik last year, said his investigations of the once-thriving company led him to conclude that the unique process is commercially unfeasible. ``The process is so expensive, you can't sell the products at a reasonable price,'' he said. ``We'll move in a different direction,'' Lezak added. He said he will disclose his plans next week, when they will be more concrete. Organik Technologies was founded to convert a supersoft, shrink-free, 100 percent cotton fabric into casual clothing. At one time, the company had attracted the interest of retailers such as Nordstrom and J.C. Penney. It made clothes under private label brands for Eddie Bauer Eddie Bauer (NASDAQ: EBHI) is a clothing store chain. Headquartered in Bellevue, Washington, and a subsidiary of Eddie Bauer Holdings (formerly Spiegel, Inc.), the company was founded in Seattle in 1920 as "Eddie Bauer's Sport Shop" by its namesake, Eddie Bauer (1899 – and Land's End Land's End, promontory, Cornwall, SW England, forming the westernmost extremity of the English mainland. Of wave-carved granite, it has cliffs c.60 ft (20 m) high. Offshore are reefs and rocky islets, on one of which is Longships Lighthouse. . But gross mismanagement mis·man·age tr.v. mis·man·aged, mis·man·ag·ing, mis·man·ag·es To manage badly or carelessly. mis·man  age·ment n. plunged the company into years of losses, led to disgruntled dis·grun·tle tr.v. dis·grun·tled, dis·grun·tling, dis·grun·tles To make discontented. [dis- + gruntle, to grumble (from Middle English gruntelen; see customers and a dizzying, revolving door of departing CEOs. Manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. have all but ceased. Organik filed Chapter 11 bankruptcy in November. In December, the company's stock price hit a low of 3 cents a share. However, speculators pushed its price up greatly since then, hovering at around 15 cents this week. The stock price hit a high Feb. 23, closing at 35 cents with trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of 327,400 - 14 times its average daily volume in the past six months. Organik didn't trade Thursday but closed unchanged at 15.6 cents on light volume of 2,500 shares Wednesday. |
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