NEW YORK — At a time when many textile executives have been sorting through their debts and wondering how to pay them, officials at Fab Industries Inc. have been dealing with the opposite problem: figuring out the best way to pay surplus cash...
NEW YORK — At a time when many textile executives have been sorting through their debts and wondering how to pay them, officials at Fab Industries Inc. have been dealing with the opposite problem: figuring out the best way to pay surplus cash out to shareholders.The company hasn’t been spared the intense pain that has afflicted most U.S. mills in recent years. Falling sales have forced it to scale back its operations considerably — the mill has cut its workforce, by more than 1,000 employees, to 676.At the same time, the company was sitting on a $90 million war chest that chairman and chief executive Samson Bitensky had amassed so the company could make acquisitions. Bitensky concluded that all the options he looked at in recent years were "too risky."That prompted the decision late last year to put the company up for sale and pay out the money to shareholders. As reported, in June the company paid out a $10-a-share dividend, totalling $52.4 million, as the first installment of the cash. But Bitensky said he wants to make one thing clear: The company is on the block, but is not going out of business."Once we are done consolidating…a diversified business like ours will have a good opportunity to compete," he said in a Thursday interview. "There are changes, but it’s not like I’m throwing in the towel."Fab’s apparel-fabric production is now mostly handled out of its Lincolnton, N.C., mill and finishing plant. The company also operates smaller mills, producing blankets and industrial fabrics, in Salisbury, Pa., and Amsterdam, N.Y.While Fab’s sales have shrunk, it has typically remained profitable. For the first half of 2002, the company recorded $949,000 in net income on sales of $31.6 million, compared with a $5.4 million net loss on sales of $43 million a year earlier.Bitensky said he sees some growth prospects ahead. The company’s sales into the Caribbean Basin region have risen and Fab is now beginning to warehouse some fabrics at apparel plants in the area to allow them quicker turn times.Bitensky has attached one key requirement to the sale offer for the company."It will be as a going business," he said. "For stockholders, it’s not good to liquidate a business."Bitensky’s 28.6 percent stake in Fab makes him the company’s largest shareholder.Should no outside buyer materialize, Bitensky said he believes current management, which includes his son-in-law Steven Myers, president and chief operating officer, could buy the firm, which had a market capitalization slightly over $40 million on Friday."Probably our people would find a way to do it," Bitensky said. "What I’d like to see is the company successfully continue."
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim
“I genuinely fell in love with water, I fell in love with Fiji, I fell in love with the whole life that we lived for those few months,” says @mrsamclaflin of filming for his new movie “Adrift” with @shailenewoodley. The 31-year-old actor spoke with WWD about his upcoming projects, meeting Jamie Dornan and working with co-star Woodley. #wwdeye (📷: @jamstoker)
3 years ago, fans of the late singer Aaliyah started calling for a collaboration with @maccosmetics. With the strength of social media — including mock ups of products — 25,000 people signed a Change.org petition for a limited-edition collection, and MAC couldn’t ignore the buzz. Tomorrow, MAC will unveil MAC x Aaliyah, a tribute to the singer who passed away nearly 17 years ago. Head to our stories to preview the new collection, which was worked on by Aaliyah’s family and inspired directly by her makeup bag. #wwdbeauty
Artistic director @clarewaightkeller will be dedicating @givenchyofficial’s fall 2018 couture show in Paris on July 1 to house founder Hubert de Givenchy, who passed away in March at age 91. Givenchy said the collection would be “an homage to his iconic creations, technique, and personal lexicon” and a “celebration of his timeless elegance and grace.” Head to WWD.com to read more. #wwdfashion (📷: Delphine Achard)