• LEVI’S CLAIMS CLEAN BOOKS: Levi Strauss & Co. said Monday that its audit committee had completed a review of its tax and accounting procedures and found them to be appropriate. As reported, in April two former employees sued the San Francisco-based jeansmaker claiming they were wrongfully terminated because they refused to go along with improper accounting procedures. Levi’s had previously denied any wrongdoing, but performed an investigation as a safekeeping measure.
  • WARNACO’S NEW CFO: The Warnaco Group Inc. has named Lawrence Rutkowski as senior vice president and chief financial officer, confirming a report in WWD Monday. Rutkowski’s past positions include stints at NBC/General Electric, Walt Disney Studios and, most recently, Primedia Inc. The new cfo, who takes his post on Wednesday, succeeds Jim Fogarty, who will return to turnaround firm Alvarez & Marsal Inc. Rutkowski said he and Fogarty will work together during a transition period that could last several weeks.
  • KASPER’S PLAN B: Kasper A.S.L. Ltd., the bankrupt suit and sportswear maker being acquired by Jones Apparel Group for about $215.5 million, filed an amended plan of reorganization that offered no assurance of any distribution of funds to Kasper’s equity holders. The new plan, which has the support of Kasper’s creditors’ committee, noted the distribution of funds is contingent upon a number of factors, including ongoing negotiations with the Internal Revenue Service and determination of the bankruptcy court of the interest on senior notes. The IRS action could result in a reduction of a tax loss carryforward of $39 million by $34.1 million, and the court could add to the interest payment on the senior notes, which potentially could increase claims on them by $43 million to $179 million. The new plan requires approval from the creditors’ committee and the bankruptcy court and calls for consummation of the acquisition by Jones by the end of the year.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus