NEW YORK--Oak Hill Sportswear Corp. widened its second-quarter loss to $2.3 million from $1.2 million a year ago. The latest quarter includes a $496,000 charge tied to the sale of the company's sportswear business. Oak Hill's remaining business is women's accessories.
Sales dropped 57.5 percent to $960,000 from $2.3 million, reflecting the sportswear business sale.
Oak Hill received $14.6 million from the sale of the sportswear division to Donnkenny Apparel Inc. The proceeds were used to fund a $1 million escrow account relating to the transaction, pay fees and repay bank debt.
During the second quarter, Oak Hill sold two manufacturing plants and other fixed assets and is leasing a substantial portion of its remaining fixed assets to Donnkenny.
Oak Hill still owns fixed assets in Mississippi and has an outstanding mortgage loan of $1.17 million secured by these assets. The company expects it will have about $5 million in liquid assets after collecting its retained accounts receivable and paying accounts of the sportswear business.
In the six months ended June 30, Oak Hill lost $3.3 million after the charge, against a loss of $1.1 million a year ago. Sales fell 49.7 percent to $2.6 million from $5.1 million. Oak Hill said its Harmal Industries division, which manufactures, imports and markets women's accessories, primarily belts, posted an operating loss in the first half of 1995. However, Oak Hill said it is "optimistic" that Harmal's business will improve with a new license with VF Corp. to manufacture, import and market women's belts under the Riders brand name. Oak Hill said it would also consider selling the division.
--Fairchild News Service

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