TOMMY UPDATE: Tommy Hilfiger Corp. said Wednesday that it has obtained waivers from its bank group for an affiliate, Tommy Hilfiger U.S.A. Inc. The credit facility is to expire on July 1. The waivers were necessary to prevent defaults under the facility because of the firm’s delay in filing its financial information for the quarter ended Sept. 30 with the Securities and Exchange Commission, which was due Nov. 9. The waivers are effective until March 15. The delay was partly caused by Hilfiger’s launch of an internal probe into payments made to an affiliate over a buying office’s commissions rate. The company is under investigation by federal prosecutors in Manhattan. It has received a grand jury subpoena seeking documents relating to the payments.
PAYING FOR BARNEYS: Jones Apparel Group said Wednesday it plans to raise $750 million through the sale of senior debt securities. Proceeds will be used to pay for the manufacturer’s $400 million acquisition of Barneys New York, slated to close by the end of the year, and the repayment of other debt under its senior credit facilities. The issuance will be split up into securities maturing in five, 10 and 30 years.
AWARD TIME: Movado president and chief executive officer Efraim Grinberg was honored along with filmmaker Martin Scorsese and artist Nam June Paik at the Arts & Business Council’s annual Corporate Leadership Awards on Monday at New York’s Gotham Hall. Grinberg was given the Kitty Carlisle Award in honor of Movado’s support of culture and the arts. Proceeds from the event benefited the Art & Business Council’s programs, which provide financial resources to art organizations in New York and across the country.
This story first appeared in the November 18, 2004 issue of WWD. Subscribe Today.