DONNKENNY EXPECTING LOSS FOR YEAR
NEW YORK — Donnkenny Inc. expects to report a net loss of between $5 million and $7 million for the year ended Dec. 31, according to a filing with the Securities & Exchange Commission.
The forecast is in the firm’s notification of a late filing for the year. The company, rocked by an accounting scandal in November, said it is in the process of restating financial statements for 1994 and 1995, and a portion of the estimated loss in 1996 may be applicable to those earlier periods.
In the nine months ended Sept. 30, Donnkenny reported earnings of $4.5 million on sales of $189.8 million. Based on those figures, the fourth-quarter loss would be expected to come in between $9 million and $12 million.
Shares of Donnkenny fell 1/16 to 2 1/2 Thursday on the New York Stock Exchange.
U.S. district judge Miriam Goldman Cedarbaum has selected Emanon Partners L.P. as lead plaintiff in nine consolidated securities fraud lawsuits against Donnkenny Inc. and three former officials, including Richard Rubin, who resigned as president and chief executive officer after the accounting scandal hit.