Blaming “extraordinarily difficult times for domestic manufacturers” and competition with foreign mills, denim producer Avondale Inc. reported a $7.7 million net loss for its fiscal year ended Aug. 29. That compares with a $100,000 loss a year earlier.
This story first appeared in the November 6, 2003 issue of WWD. Subscribe Today.
The 2003 loss included $5.1 million in aftertax charges related to two previously reported plant closings, asset write-offs and an early refinancing of debt, according to a filing with the Securities and Exchange Commission. In 2002, the company had $4.3 million in aftertax charges.
Sales fell 10.5 percent to $591 million.
Explaining the deteriorating financial results, chairman, president and chief executive officer G. Stephen Felker said, “Cyclical effects of poor retail sales are familiar to us. More unique today are the broad effects on global trade of the Chinese manipulation of their currency and other trade-distorting strategies. Unfortunately, it appears that Washington places little value on the manufacturing sector of the U.S. economy.”
Privately owned Avondale releases its financial results to the SEC because of publicly listed bonds.