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Warnaco Struggles Continue

NEW YORK — It’s a long and costly road back from bankruptcy.<br><br>In a Tuesday filing with the Securities and Exchange Commission, bankrupt Warnaco Group Inc. reported that, for the month ended Nov. 30, it sustained a net loss of $6.4...

NEW YORK — It’s a long and costly road back from bankruptcy.

This story first appeared in the January 8, 2003 issue of WWD.  Subscribe Today.

In a Tuesday filing with the Securities and Exchange Commission, bankrupt Warnaco Group Inc. reported that, for the month ended Nov. 30, it sustained a net loss of $6.4 million. Total revenues for the period came to $78 million.

Including $2.4 million in reorganization items, Warnaco suffered an operating loss of $6.5 million during the month. Excluding interest, taxes, depreciation, amortization and reorganization expenses, the loss was a more moderate $630,000.

For the 11 months ended Nov. 30, Warnaco recorded a net loss of $927.5 million on revenues of $1.12 billion. The loss included $787.8 million from the cumulative effect of a change in accounting. No such charge occurred in the most recent month.

The company did report an operating profit before reorganization costs of $18.8 million in the 11-month period, but $88.1 million in reorganization items threw Warnaco for an operating loss of $69.3 million. Excluding interest, taxes, depreciation, amortization and reorganization expenses, the company recorded profits of $79.3 million.

For the month ended Nov. 11, worldwide consolidated operating results from Warnaco’s debtor entities were a net loss of $6.4 million on net revenues of $100.3 million. Excluding interest, taxes, depreciation, amortization and reorganization expenses, profits were $2.5 million.

For the 11 months ended Nov. 11, worldwide consolidated operating results from Warnaco’s debtor entities came to a net loss of $927.5 million on total revenues of $1.35 billion. Excluding interest, taxes, depreciation, amortization and reorganization expenses, the result was a profit of $105.9 million.