NEW YORK — The Warnaco Group Inc., which was expected to file a reorganization plan on July 31, has asked a bankruptcy court for a one-month extension, according to court papers filed Tuesday.
This story first appeared in the July 3, 2002 issue of WWD. Subscribe Today.
The company said it wants to file a plan by July 31, but it might not meet this deadline. Warnaco has the exclusive right to file a restructuring plan until the period expires.
In the court papers, Warnaco said no core businesses have been sold at this time and that it “likely” will emerge from its year-old Chapter 11 case as a stand-alone company. The possibility of this scenario was first reported in WWD on May 7. Also, as reported, Warnaco has been circulating the financial details of some of its operations to potential buyers, including CK Jeans, CK Underwear, its intimate apparel division and Authentic Fitness. But some observers believe licensing conflicts could limit the prospects of any sales.
Warnaco has been operating under Chapter 11 bankruptcy court protection since June 2001, listing assets of $2.37 billion and liabilities of $3.07 billion. The company had losses of $670 million on a 17.8 percent drop in net revenues to $410.3 million in the three months ended April 6. The large loss resulted from a change in accounting principles. At the operating level, Warnaco had profits of $17.3 million.