CHAUS IN NEW LOAN PACT WITH BANK OF NY
NEW YORK — Bernard Chaus Inc. reported Monday that it has reached a new $60 million three-year credit agreement with BNY Financial Corp., a wholly owned unit of the Bank of New York.
The facility, scheduled to run through Feb. 21, 1998, replaces the current loan agreement, which was set to expire on July 1.
“We believe this new agreement with the Bank of New York will afford us continued flexibility for meeting our ongoing business needs,” Josephine Chaus, chairwoman, said in a statement.
As reported, Bernard Chaus has been losing money amid declining sales for several quarters. In the six months ended Dec. 31, the company lost $13.9 million while sales slipped 7 percent to $112 million.
However, the company said when it reported second-quarter results that margins are improving, costs are being trimmed and that inventory was being managed much more tightly compared to the year earlier second quarter.