NEW YORK -- Salant Corp. said it doesn't expect to meet sales and operating income projections made earlier in the year because of higher interest costs and a slower than expected recovery in sales of apparel at retail. Salant said, however, that...
NEW YORK -- Salant Corp. said it doesn't expect to meet sales and operating income projections made earlier in the year because of higher interest costs and a slower than expected recovery in sales of apparel at retail. Salant said, however, that it expects 1994 sales and operating income to improve over 1993.
In a disclosure statement filed earlier this year as part of the company's emergence from Chapter 11 in September, Salant said it was expecting operating income of $21.4 million on sales of $214.1 million in the second half of 1993. The projections were made through 1997, when operating income was forecast to reach $72 million on sales $698.9 million.
Salant, which makes women's apparel and accessories in addition to its primary business in men's wear, blamed weaker sales of dress shirts and denim apparel along with higher rates on long-term debt. Higher interest costs resulted from the decision of all secured bank creditors to receive the company's 10.5 percent public secured notes in the reorganization. Salant expected 75 percent of the secured bank creditors would get private secured notes, which have a lower interest rate. As a result, net interest expense for 1994 will be about $4.2 million higher than projected.
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