RESTRUCTURED HE-RO POSTS $4.1M LOSS IN 4TH QUARTER
NEW YORK--The He-Ro Group, which has gone through a major restructuring in the past year, on Monday reported a $4.1 million loss for the fourth quarter ended May 31 after restructuring charges of $2.8 million. Also on Monday, He-Ro stated that it had reached a definitive agreement with its banks for a new 18-month revolving credit. The arrangement will provide $15.7 million at the start. This will be reduced over the next 15 months to $10 million, which the company states will meet its expected needs under the restructuring. In its financial report, He-Ro said that in the year-ago fourth quarter, the company lost $4.1 million before a tax credit of $714,000. Sales were down to $15.7 million from $43.8 million in the year-ago period. Last year's sales figures, however, include approximately $23 million from operations discontinued in the restructuring. William J. Carone, He-Ro's chairman, said the results reflect He-Ro's previously announced restructuring designed to refocus the business on fewer labels. He said he expects further progress in 1995, "leading to a return to growth and profitability." For the year, the loss came to $30.6 million after restructuring charges of $19.8 million, against a pretax loss in the prior year of $4.3 million. After a tax credit, the loss was $2.3 million. Sales were $87 million against $170.5 million, including about $70 million from discontinued operations. He-Ro has dropped a number of designer labels and has focused its operations on the evening and special occasion wear business under the Black Tie by Oleg Cassini and Niteline by Della Roufogell labels. He-Ro also will be continuing to emphasize its retail stores.
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