Printer Friendly

GITANO GROUP NAMES GREGORY CHAIRMAN AND CEO; ANNOUNCES AGREEMENT WITH LENDERS

 NEW YORK, Feb. 24 /PRNewswire/ -- The Gitano Group, Inc. (NYSE: GIT) today announced that Robert E. Gregory Jr., a respected apparel industry executive, has been named chairman and chief executive officer. Mr. Gregory's appointment has been approved by Gitano's board of directors, and is fully supported by Gitano's lenders.
 Mr. Gregory, 50, served for eight years as president and chief operating officer of VF Corporation, maker of Lee and Wrangler jeans, Jantzen swimwear and Vanity Fair lingerie. Prior to that he was president of Lee for three years. During this 11-year period, VF's annual sales and profits more than tripled, with sales reaching $2.5 billion.
 Haim Dabah continues as Gitano's president. With Mr. Gregory's appointment, Mr. Dabah will be able to again focus his attention fully on the marketing side of the business.
 In naming Mr. Gregory, Gitano also announced that it has agreed with its lenders on the principal terms for a long-term agreement that would provide Gitano with a 24-month extension of its short- and long-term direct debt facilities through Feb. 28, 1995, and an expiration date of Aug. 30, 1995 for letters of credit to be issued under its letter of credit facility. Existing waivers have been extended for 30 days to permit documentation of the definitive long-term agreements.
 Gitano stated that the long-term extensions of these facilities reflect the recognition by the company's lenders of the substantial changes which are occurring at the company. Among other things, Gitano has substantially downsized its operating structure and is refocusing its resources on its core wholesale apparel business, having sold its accessory operation, contracted to sell its intimate apparel and private label operations, closed its Regatta division, shut down most of its manufacturing facilities, and nearly completed exiting the retail business. As of today, Gitano has reduced its wholesale and manufacturing work force to approximately 1,555 from a total of approximately 5,323 at January 1992. In the retail division, the work force has been reduced from approximately 1,990 associates a year ago to approximately 550 as of today.
 To reflect the costs associated with the restructurings of its operations and restructuring of its debt as well as the sales and closures of several of its businesses, Gitano will take a charge of approximately $103 million against 1992 fourth-quarter earnings. Approximately 50 percent of the charge will be non-cash and will cover, among other things, writedowns of goodwill and writedowns of property, plant and equipment and other assets. The charge also will establish reserves for real estate consolidations, severance arrangements and other expenses associated with businesses to be exited and ongoing operations as well as expenses associated with the debt restructuring. The company expects to post a net loss, inclusive of the previously mentioned restructuring costs, of approximately $140 million for the fourth quarter ended Jan. 2, 1993. Given this estimated fourth-quarter loss, the net loss for the year will be approximately $238 million. The company anticipates reporting its audited 1992 financial results before the end of March 1993.
 Mr. Dabah stated, "The multi-year lending agreement will provide Gitano with financial stability and assure our customers and vendors of our lenders' support. With this support, we intend to be a strong competitor in the marketplace. Part of the restructuring process for Gitano, as we previously announced, is building a strong professional management team, a process we began last June. We are extremely fortunate to have a professional of Rob Gregory's caliber and expertise to head Gitano. I look forward to working very closely with Rob and relying on his wealth of experience," he said.
 Mr. Gregory stated, "There is real strength in the Gitano brand name and the core business of the company. I believe that my years of industry experience and management leadership can be beneficial to the restructuring of the company and the building of its business for the future. While Gitano has made some significant progress recently in refocusing its business, we must make dramatic improvements very quickly in our remaining business in order to better support our retailers, satisfy our lenders, and enhance shareholder value. I look forward to working with the Gitano associates to achieve this objective and build the company for the long term," he said.
 Gitano is a leading supplier of branded, high quality, affordable apparel to mass merchants and discounters.
 -0- 2/24/93
 /CONTACT: Robert D. Siegfried and Roy Winnick of Kekst and Company, 212-593-2655, for Gitano/
 (GIT)


CO: The Gitano Group, Inc. ST: New York IN: TEX REA SU: PER

GK-SH -- NY008 -- 9769 02/24/93 09:13 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 24, 1993
Words:763
Previous Article:COLTEC INDUSTRIES REPORTS RESTATED FOURTH QUARTER AND 12 MONTH RESULTS
Next Article:ORION CAPITAL PER-SHARE OPERATING RESULTS FOR 1992'S FOURTH QUARTER INCREASED 25 PERCENT BEFORE ONE-TIME ITEMS
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 ANNOUNCES STRATEGIC ACTIONS
GITANO GROUP INC. REPORTS RESULTS
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