NEW YORK — Bankrupt Warnaco Group on Wednesday filed its June operating report with the Securities and Exchange Commission showing a loss due primarily to reorganization costs.
This story first appeared in the August 22, 2002 issue of WWD. Subscribe Today.
For the period from June 2 through July 6, the loss was $27.6 million on revenue of $110.2 million. Operating income was $1.4 million, but reorganization costs of $28.2 million clearly pushed the firm into the red for the month. Restructuring-related costs include: $1 million in asset write-offs; $2.7 million in professional fees; $488,000 in retention bonuses; $1.1 million for severance and $22.9 million for a lease settlement with GECC.
For the six months, the loss was $722.6 million on revenue of $665 million. Operating income before reorganization items was $21.2 million. While reorganization costs were just $56.6 million for the six months, a previously reported charge of $660.9 million for the cumulative effect of an accounting change skyrocketed the period’s loss.
Warnaco has the exclusive right to file a plan of reorganization until Aug. 30. The company said in the filing that it doesn’t anticipate sufficient funds to pay any distribution to holders of either common stock or preferred securities under a confirmed plan of reorganization.