NEW YORK — Bankrupt Warnaco Group is hedging its bets.
This story first appeared in the October 1, 2002 issue of WWD. Subscribe Today.
The apparel firm last month told a Manhattan bankruptcy court that it would file a plan of reorganization by Sept. 30, but may need another week to iron out details.
On Monday, just hours before that deadline, the main constituents in the case — Warnaco, the official committee for unsecured creditors and counsel for the firm’s pre-petition banks — agreed to extend the time to file a plan until Oct. 7. Bankruptcy court approval was granted on Monday. As reported, Warnaco’s exclusive right to file a plan was set to expire on Sept. 30 at midnight. Now Warnaco is free to file anytime between 12:01 a.m. today and midnight on Oct. 7, without fear of a third party entering the picture claiming that Warnaco had lost exclusivity.
Sources said that because the company was close to meeting its Sept. 30 deadline, Warnaco could likely file sometime today.
As reported, the firm posted an $857.8 million loss for the quarter ended April 6 on revenues of $410.1 million. As of April 6, it had $1.1 billion in assets and $312.4 million in liabilities, according to a filing with the Securities and Exchange Commission.
Although Warnaco has been in on-and-off discussions with potential acquirers of parts of its business — most recently with VF Corp. — the plan of reorganization is expected to detail a Warnaco that exits from bankruptcy proceedings as a stand-alone company.
The company, after extensive restructuring, has operations in intimate apparel, sportswear, swimwear and retail outlets.