LEVI’S CREDIT DOWNGRADE: Citing what it called the San Francisco jeansmaker’s deteriorating financial position, credit-ratings agency Moody’s Investors Service on Monday lowered its ratings on Levi Strauss & Co. In a research note, Moody’s said the lowered ratings were due to “the rapid decline in the company’s financial flexibility vis-à-vis its recently executed credit agreement and weaker-than-anticipated year-to-date results, particularly in the areas of sales, working capital needs and cash generation.” Moody’s lowered its rating on Levi’s senior unsecured notes to “Ca” from “B3,” cut its senior implied credit rating to “Caa1” from “B2” and assigned an initial “(P)Caa1” rating to the company’s proposed $500 senior secured credit facility.
CHAPS’ NEW CHAPTER: Warnaco Group said Monday that its license from Polo Ralph Lauren Corp. to produce Chaps men’s sportswear had been extended 10 years, through 2018. In a regulatory filing with the Securities and Exchange Commission, Warnaco reported that the amendment to the existing license also expands the range of products to include a jeanswear collection, activewear and swimwear and adds to “the range of approved accounts.” Warnaco will introduce a new trademark and logo for Chaps as part of the new agreement.
Hermès is launching a Laundromat pop-up shop in NYC - dubbed Hermèsmatic - where customers can bring their old scarves to be dip-dyed by an expert. Get all the details on WWD.com. #wwdnews (📷: @donstahl)