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Special Items Push ’93 Loss at Crystal Brands to $216.1M

SOUTHPORT, Conn. -- Plagued by massive special charges including a writeoff on its costume jewelry business, Crystal Brands reported a net loss of $80.4 million in the fourth quarter and a loss of $216.1 million in all of 1993.<BR><BR>The quarterly...

SOUTHPORT, Conn. — Plagued by massive special charges including a writeoff on its costume jewelry business, Crystal Brands reported a net loss of $80.4 million in the fourth quarter and a loss of $216.1 million in all of 1993.

The quarterly loss compares with a year-ago loss of $8.9 million. In all of 1992, the company lost $76.2 million.

Sales of continuing operations for the quarter dropped 16 percent, to $108.6 million from $129.2 million. For the year, sales from continuing operations dropped 8.7 percent, to $444.3 million from $486.9 million.

The company filed a Chapter 11 petition last January after a series of heavy losses, some of which were the result of selling off various operations at below carrying value.

The charge for the costume jewelry business, included in the fourth-quarter loss, comes to $51.1 million and reflects a writeoff of goodwill and intangibles related to this business. As reported, Crystal Brands has put its jewelry business up for sale, but it still is regarded as part of continuing operations.

In addition to the costume jewelry writeoff, the loss for the year includes an $82 million charge from the sale of the Evan-Picone trademark last November and a $13.4 million charge for a change in accounting for post-retirement benefits.

Charles J. Campbell, chairman and chief executive officer, said that with the announcement of the 1993 results, “we believe we are past our most difficult times.” He added that continuing operations have improved in 1994 and that the firm is working with creditors toward a plan of reorganization.

In addition to its jewelry firms, Crystal Brands’ continuing operations include men’s and boys’ sportswear under the Gant, Salty Dog and Izod brands; men’s and women’s active sportswear under the Izod Club and U.S. Open labels, and sportswear and casual wear for women under the Izod and EP Pro names. The firm’s jewelry brands are Monet, Trifari and Marvella.