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Warnaco: Plan on Schedule

NEW YORK — Warnaco Group expects "no material impact" on its reorganization plans as a result of the Securities and Exchange Commission’s ongoing investigation into the company’s accounting practices.<br><br>The current SEC...

NEW YORK — Warnaco Group expects “no material impact” on its reorganization plans as a result of the Securities and Exchange Commission’s ongoing investigation into the company’s accounting practices.

The current SEC investigation into Warnaco’s accounting has been under way since before it was first disclosed by Warnaco in April 2001. In a story on page 1 Monday, it was incorrectly stated that the current SEC investigation into Warnaco is the second probe into its finances.

A company spokesman said Monday that, while the SEC now expects to recommend an enforcement action against Warnaco and individuals affiliated with it since 1999, Warnaco plans to file a plan of reorganization by the end of this month and hopes to eventually emerge from bankruptcy as a stand-alone company.

As reported, Warnaco filed Chapter 11 in June 2001 and this month filed a Form 10-K detailing $51 million in restatements for three fiscal years beginning in 1999.

Warnaco disclosed its intention to restate earnings in August, two months after its Chapter 11 filing and four months after acknowledging the SEC investigation.

This story first appeared in the August 6, 2002 issue of WWD.  Subscribe Today.