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Chaus Posts 3rd-Qtr. Loss

Revenues for the period down 16.3%.

Bernard Chaus Inc. on Tuesday said it posted a third-quarter loss.

 

The loss for the three months ended April 2 was $1.5 million, or 4 cents a diluted share, against income of $16,000, or no cents, last year. Revenues fell 16.3 percent to $23.3 million from $27.8 million.

 

For the nine months, the loss grew to $4.7 million, or 13 cents a diluted share, from $3.4 million, or 9 cents, last year. Revenues declined 6.5 percent to $67.9 million from $72.6 million.

 

According to its balance sheet, it ended the quarter, on an unaudited basis, with just $3,000 in cash, although accounts receivable in a factored account were valued at $14.5 million. The apparel firm’s financing agreement is with The CIT Group/Commercial Services Inc. and is set to expire in September.

 

The company in October 2010 entered into an agreement with Kenneth Cole Productions Inc. to end its license agreement on June 1 instead of its original termination date of June 30, 2012. In November, it entered into a licensing agreement with Camuto Consulting Inc. for women’s sportswear and ready-to-wear apparel under the Vince Camuto trademark in certain North American department and specialty stores and off-price channels.

 

According to its quarterly regulatory filing with the Securities and Exchange Commission, or Form 10-Q, Chaus will pay neither royalties nor advertising and marketing expenses in 2011, but will begin doing so in 2012, when it will pay a minimum of $2.1 million. The Camuto agreement is set to end Dec. 31, 2015, although Chaus has the option to renew for an additional term of three years if certain conditions are met.