RESTATEMENT BLUES: Warnaco Group’s Designer Holdings Ltd. subsidiary was the source of some of the accounting errors that necessitated a $43 million charge announced in August 2001, along with the restatement of financial results for three years...
RESTATEMENT BLUES: Warnaco Group’s Designer Holdings Ltd. subsidiary was the source of some of the accounting errors that necessitated a $43 million charge announced in August 2001, along with the restatement of financial results for three years beginning with fiscal 1999. The unit, which held the Calvin Klein jeanswear license, was acquired by Warnaco in September 1997. According to Warnaco’s annual report, filed with the Securities and Exchange Commission on Wednesday, the errors involved the recording of intercompany pricing arrangements, the recording of accounts payable primarily related to the purchase of inventory from suppliers and the accrual of certain liabilities. The filing attributed certain of the company’s European subsidiaries as other sources in connection with those errors. Warnaco has been in Chapter 11 since June 2001.
Y NOT!: Yohji Yamamoto has opted to show his Y’s secondary line on the evening of Oct. 2, one day prior to this fall’s official Paris Fashion Week kickoff. Martin Margiela will show that night as well. The Y’s fashion show will take place at 7 p.m. at the Musée du Cinema on Paris’ Right Bank, followed by Margiela at 8 p.m. at a still-to-be-decided location. The house decided to show off-schedule rather than on Oct. 9, when the Chambre Syndicale de la Haute Couture offered it a time slot. A Yamamoto spokeswoman said that date fell too late in Paris Fashion Week, which ends on Oct. 12. She added that Oct. 2 is more convenient for buyers and editors. Yamamoto in the past has shown on Oct. 3, but this year decided to show his ready-to-wear line during the couture season in July. As reported, the debate over which date to show Y’s stemmed from the Chambre’s rule barring shows of secondary lines. Yamamoto contends Y’s is his main line, while his rtw is more in line with couture. Oct. 2 had previously been designated as a travel day after Milan Fashion Week, which winds up the night of Oct. 1. But many designers are keen to show in Paris as early as possible, fearing that most major buyers and editors will skip town on Oct. 9.
THE PRICE OF MOTHERHOOD: Mothers Work Inc. priced the public offering of 1.1 million shares of its common stock at $27 each. The Philadelphia-based retailer is offering 1 million of the shares while stockholders will sell the remainder. The deal’s underwriters were also granted the option to purchase up to 165,000 additional shares to cover over-allotments. Credit Suisse First Boston is the lead manager on the offering with Legg Mason Wood Walker, Investec and Commerce Capital Markets acting as co-managers. Additionally, Mothers Work on Wednesday sold $125 million in bonds carrying an 11.25 percent coupon and maturing in 2010, according to published reports.