DANSKIN SHRINKS 4TH-QUARTER LOSS
NEW YORK — Despite a $2.5 million charge related to a deferred tax asset, Danskin Inc. narrowed its fourth-quarter loss to $3.1 million from $3.4 million a year ago.
Sales for the three months ended Dec. 28 rose 5.5 percent to $32.2 million from $30.6 million.
Activewear revenues increased by 14.4 percent to $20 million, partially offset by a 6.4 percent decline in legwear revenues to $12.2 million, Danskin said.
For the year, the company cut its loss to $5.2 million, including the charge, from $8.6 million.
Total sales gained 1.7 percent to $128.1 million from $125.9 million. Activewear revenues rose 5.6 percent to $80.6 million, but legwear revenues dipped 4.2 percent to $47.5 million.
In another development, Danskin reported that Howard D. Cooley has been replaced as chairman by Donald Schupak.
Schupak, who has been a board member since last October, also continues to operate the Schupak Group, a consulting firm. A Danskin spokeswoman said Cooley had retired.
Cooley joined Danskin as chief executive officer in 1994. He later became chairman and ceo. Early last year, Mary Ann Domuracki, Danskin president, moved up from chief operating officer to ceo.
Before joining Danskin, Cooley was president of Jockey International from 1979 to 1992.
He became a Danskin board member in 1993.
Danskin also noted that it has amended its loan agreement with First Union National Bank of North Carolina, increasing the amount of its revolving credit facility to $28.5 million from $25 million.
Danskin also deferred the current maturities on its term note amortization until March 31, 1998.