DANSKIN RAISES $19.2M IN PREFERRED STOCK SALE
NEW YORK — Danskin Inc. said it raised $19.2 million through the sale of preferred stock and debt.
The activewear and hosiery firm sold $15.2 million in senior convertible preferred stock and $4 million in senior term debt. The firm also said it converted $12 million in preferred stock to common stock, and said it is considering up to $4.8 million in preferred stock. “The company now has a strong balance sheet to begin the new millennium and its 120th year in business.”said Donald Schupak, chairman. He added that Danskin’s “Project Runrite” program “is making great strides toward reducing infrastructure costs and increasing margins,” while the healthier balance sheet “will provide much more flexibility and bargaining power with respect to discussions with our vendors.”
In the nine months ended Sept. 25, Danskin’s losses widened to $9.7 million from $4.8 million, according to a filing with the Securities & Exchange Commission. Sales fell 16.7 percent to $68.8 million.
At the Danskin activewear division, operating losses grew to $4.1 million from $1.5 million, while sales slumped 14.8 percent to $48.2 million. Activewear’s performance was hurt by declines in the core Danskin brand at both wholesale and retail and the discontinuation of Dance France, the firm said.
The Pennaco hosiery division widened its loss to $2.3 million from $457,000, while sales slid 20.8 percent to $20.6 million. Pennaco was hurt by the expiration of the Anne Klein legwear license, sales declines in Givenchy and higher sales of the lower-margin Round-the-Clock “Take Two” value-pack product and legwear continuity programs.