NEW YORK — The Warnaco Group Inc. continued to bleed red in September as reorganization costs more than offset operating income.
In a Dec. 2 statement of operations filed with the U.S. Bankruptcy Court for the Southern District of New York and released by the Securities and Exchange Commission Tuesday, for the month ended Oct. 5, Warnaco registered a net loss of $12.8 million.
Net revenues for the New York-based manufacturer accrued to $134 million.
Operating income for the month was $3.3 million, but $11.2 million in costs for reorganization items pushed the company to an operating loss of $7.8 million. An income tax provision of $1.7 million and $1.3 million in interest expense also eroded the bottom line.
In better news, operations from Warnaco’s debtor entities did post earnings before interest, taxes, depreciation, amortization and reorganization items (EBITDAR) of $12 million on revenues of $134 million.
For the nine months ended Oct. 5, Warnaco recorded a net loss of $905.4 million on revenues of $949.6 million. Operating income of $28.4 million was more than erased by $76.2 million in reorganization costs. That pushed the company to sustain an operating loss of $47.8 million.
Other items negating earnings were $14.7 million in interest expenses, as well as a cumulative $787.8 million charge related to a change in accounting principle. As a result, a tax benefit of $3.3 million could do little to stanch the bleeding.
EBITDAR for the period for the operations of Warnaco’s debtor entities came to $101.6 million on revenues of $1.14 billion.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty