Joe’s Jeans Inc., struggling with a default on its term loan with Garrison Loan Agency, has canceled its fourth-quarter conference call.
The firm expects to file its financial statements for the quarter with the Securities and Exchange Commission on Friday but hasn’t rescheduled its call.
“However, the postponement of the earnings call will allow senior management additional time to deal with the debt refinancing process currently under way,” the company said.
It has engaged Carl Marks Advisory Group to help its board explore strategic and financing alternatives to resolve the default.
Joe’s, which also owns Hudson Jeans, said in November that, during the 12 months ended Sept. 30, it had fallen out of compliance with the earnings provisions of its loan with Garrison, triggering a default not only with Garrison on its term loan but also with CIT Commercial Services on its revolving credit and factoring facility. The default kicked the interest rate on its Garrison loan up to 14 percent from 12 percent.
Last month, Marc Crossman resigned as chief executive officer of the Los Angeles-based jeans firm and was succeeded on an interim basis by Samuel Joseph “Jay” Furrow Jr., former ceo of Joe’s predecessor company, Innovo Group Inc., and the son of Joe’s chairman Samuel J. “Sam” Furrow.