BOOKSHESTER APPOINTED CEO OF FRUIT OF THE LOOM
NEW YORK — Bankrupt Fruit of the Loom on Thursday said Dennis S. Bookshester was appointed chief executive officer.
Bookshester was the acting ceo for eight months and is on the company’s board. He is the former chairman and ceo of Carson Pirie Scott & Co. His career also includes stints as ceo of Zale Corp. and the now-defunct Caldor Corp.
FTL filed for Chapter 11 bankruptcy in December 1999 and since then has been hit with several shareholder lawsuits seeking class-action status. The suits allege that former officers of the bankrupt firm violated the antifraud provision of federal securities laws by knowingly engaging in a scheme designed to overstate the financial condition of the company and artificially inflate the company’s stock price.
The company also continues to fight a court battle to seize assets from former ceo William Farley, for whom it guaranteed a $65 million loan that has since come due.
The New York Stock Exchange on April 20 suspended trading in shares of FTL, saying it planned to apply to the Securities and Exchange Commission to delist the manufacturer. FTL has said it is unlikely that existing shareholders would receive any distribution following the company’s reorganization.
FTL has about 31,000 employees in 60 locations worldwide. It had 1999 sales of $1.84 billion.