SIGNAL HAS $7.4M LOSS
CHATTANOOGA — Reflecting discontinued operations, Signal Apparel Co. reported a third-quarter loss of $7.4 million. In the year-ago quarter, the company lost $6.8 million.
Sales for the three months ended Sept. 30 fell 37.4 percent to $13.2 million from $21.1 million.
For the nine months, the knitwear company lost $20.7 million compared to a loss of $17 million. Sales dropped 33.8 percent to $48 million from $72.5 million.
The company said results in both periods were partially attributable to discontinued unprofitable businesses. Signal’s major discontinued business was a distributor of blank shirts, which it started closing down late last year.
In addition, results were affected by nonrecurring expenses and losses related to the opening of a distribution and printing facility in Chattanooga, severance payments associated with staff reductions and the disposal of inventory from the discontinued businesses.
Discussions are under way with several potential candidates for new capital, the company noted.