WWD.com/fashion-news/fashion-features/in-brief-tarrant-s-change-mossimo-hire-j-crew-takes-loan-591809/
government-trade
government-trade

In Brief: Tarrant’s Change … Mossimo Hire … J. Crew Takes Loan …

<b>TARRANT’S CHANGE</b>: Tarrant Apparel Group has amended its contract for the sale of its Mexican factories announced last August. The purchase price for the equipment and facilities of the affiliates of company shareholder Kamel Nacif will...

TARRANT’S CHANGE: Tarrant Apparel Group has amended its contract for the sale of its Mexican factories announced last August. The purchase price for the equipment and facilities of the affiliates of company shareholder Kamel Nacif will include $105,400 in cash and the delivery of $3.91 million in unsecured promissory notes bearing annual interest at 5.5 percent in lieu of 4.72 million shares of Tarrant common stock. As part of the amendment, Tarrant chairman and principal shareholder Gerard Guez will purchase 4.6 million shares of company stock from the buyers at a price of $0.85 per share worth $3.91 million. In addition, Tarrant’s chief financial officer Corazon Reyes agreed to purchase 124,000 shares from the buyers at the same price.

MOSSIMO HIRE: Clothing designer Mossimo Inc. said Tuesday Vicken Festekjian has been named chief financial officer. Festekjian joins Mossimo from the accounting firm of Moss Adams LLP, where he served as manager and spent three years on the Mossimo account. Mossimo’s former cfo, Mali Shrinivas, resigned in August after concern arose over this background and experience. Co-chief executive officer Edwin Lewis had stepped in as the interim cfo. For the third quarter ended Sept. 30, the company posted a quarterly loss of $125,000, or 1 cent a share, down from a profit of $630,000, or 4 cents a share, last year. Revenue for the period rose to $4.9 million from $4.2 million, but the increase was offset by selling, general and administrative costs that grew to $4.5 million from $3.1 million.

J. CREW TAKES LOAN: J. Crew Operating Corp., a subsidiary of the New York-based retailer J. Crew Group Inc., entered into a $275 million senior subordinated loan agreement with Black Canyon Capital LLC and Canyon Capital Advisors LLC on Nov. 21, according to a Securities and Exchange Commission filing. The loan is expected to take effect on Dec. 23 and will be due in 2014. The proceeds of the loan will be used to redeem in full J. Crew Operating Corp.’s outstanding senior subordinated notes due 2007 and redeem in part J. Crew Intermediate LLC’s discount contingent principal notes due 2008.