Hampshire Group Ltd. on Monday reported a wider second-quarter loss and job cuts that will bring its global head count to half of what it was at the start of fiscal 2009.
The Anderson, S.C.-based knitwear firm is in the final phase of a restructuring that began in April and will shed 93 further jobs, or 29 percent of its current staff, according to a filing with the Securities and Exchange Commission.
The majority of the latest cuts will come as a result of consolidation of its Asian operations, but will also include some in its executive level, the company said.
Hampshire expects to save $9.3 million in selling, general and administrative expenses through the restructuring. Since the start of the fiscal year, the company has shed about 160 positions, or 50 percent of the workforce.
For the quarter ended June 27, the sweater and sportswear supplier reported a net loss of $8.5 million, or $1.55 a diluted share, versus a loss of $5 million, or 64 cents a share, last year.
Sales in the three months fell 36.3 percent to $21 million from $32.9 million in the comparable quarter.
The firm’s shares rose 10 cents, or 3.6 percent, to $2.85 on Monday.
In the first half of 2009, Hampshire recorded a loss of $16.2 million, or $2.97 a share, compared with a loss of $8.8 million, or $1.12 a share, in 2008.
Sales in the six months fell 31.1 percent to $50 million from $72.7 million.
The company also said it had reduced its current credit facility to $48 million from $125 million and it will now expire in June 2011 instead of April 2013.
In April, Hampshire and investment fund NAF Holdings II failed to complete a merger that would have taken the manufacturer private. The deal was engineered by Efrem Gerszberg, who had sought to take control of the company through a cash tender offer worth about $30.4 million.
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