NEW YORK — The He-Ro Group Ltd., which is being heavily downsized, posted a loss of $1.7 million in the second quarter ended Nov. 30 after a $1 million restructuring charge.
The charge is related to the closing of the company’s moderate dress, sportswear, bridge dress and suit divisions. Following the death of Herbert Rounick, the company’s founder and chairman, in September, He-Ro announced plans in October to refocus around its Black Tie by Oleg Cassini and Nightline product lines and retail outlet stores.
In the 1992 second quarter, He-Ro reported a profit of $3.07 million, or 46 cents a share.
Sales from continuing operations in the most recent quarter tumbled 58.3 percent, to $25.5 million from $61.1 million, reflecting the downsizing. Net sales from discontinued operations in the latest quarter were $29.2 million.
In the six months, He-Ro reported a loss of $22.9 million after a charge of $17 million related to the downsizing. That compares with earnings of $3.3 million, or 49 cents, a year earlier.
Sales in the half sank 38.2 percent, to $60.4 million from $97.6 million.
He-Ro is still in talks for a new bank agreement. The death of Rounick caused the firm to default on many of its bank agreements and other financial covenants.