Printer Friendly

GITANO GROUP ANNOUNCES STRATEGIC ACTIONS

 GITANO GROUP ANNOUNCES STRATEGIC ACTIONS
 NEW YORK, July 31 /PRNewswire/ -- To accelerate its operational


restructuring, the Gitano Group, Inc. (NYSE: GIT), has undertaken a number of strategic actions to refocus the company on its core wholesale apparel business, to downsize its non-core operations consistent with current market demand, to shrink its balance sheet proportionately, and to improve its liquidity and financial flexibility.
 These actions include, among other things, a reduction in current seasons' inventories, a substantial decrease in the size of its retail operations and the creation of a reserve against certain related-party receivables, the company today announced.
 Accordingly, Gitano will record two non-cash charges against second quarter earnings. One of approximately $50 million is to cover losses stemming from the inventory reductions, closure of additional stores, severance arrangements, and other expenses in connection with the continued restructuring. The other approximately $28 million charge is to cover the creation of the reserve for related-party receivables. Although the charges caused Gitano to be in default of certain covenants under its credit facilities, the company and its lenders are in discussions about amending its credit facilities.
 -0- 7/31/92
 /CONTACT: Robert Siegfried or Thomas J. Davis of Kekst and Company, 212-593-2655, for Gitano/
 (GIT) CO: The Gitano Group, Inc. ST: New York IN: REA SU:


GK-KW -- NY059 -- 5730 07/31/92 15:48 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 31, 1992
Words:223
Previous Article:PORSCHE ANNOUNCES RECALL
Next Article:NATIONAL COMMERCIAL BANK REACHES AGREEMENT FOR AMENDED PLAN FOR VOLUNTARY LIQUIDATION OF NEW YORK CITY BRANCH OFFICE
Topics:


Related Articles
GITANO GROUP REPORTS THIRD QUARTER RESULTS
GITANO GROUP REPORTS LOSS FROM OPERATIONS AND RESTRUCTURING IN 1991; TO ACCELERATE RESTRUCTURING; WILL RETURN TO PROFITABILITY
GITANO GROUP INC. REPORTS RESULTS
GITANO GROUP NAMES GREGORY CHAIRMAN AND CEO; ANNOUNCES AGREEMENT WITH LENDERS
THE GITANO GROUP REPORTS RESULTS
GITANO GROUP ANNOUNCES COMPLETION OF DEBT EXTENSION
HONG KONG-BASED LENDER FOR DUTTON II, A SUBSIDIARY OF THE GITANO GROUP, APPOINTS RECEIVER
GITANO GROUP REPORTS RESULTS
REPEATING FROM THURSDAY FOR POINTS NEEDED

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters