Interviews
News Flash
Private Label sales fall at Tarrant Apparel Group
20 Nov '08
4 min read
Loss from operations for the first nine months of 2008 was $5.8 million compared to income from operations of $5.3 million in the comparable prior period of 2007. The net loss was $5.3 million, or $(0.17) per share, compared to net income of $1.4 million, or 0.05 per share in the 2007 comparable period.
The net loss for the first nine months of 2008 includes an impairment charge of goodwill pertaining to the Company's Chazzz division of $5.3 million, which was recorded in the period as a result of the bankruptcy filing of Mervyn's LLC and the rapidly declining business of another retail customer. Both retailers had been major customers of the division.
"The bankruptcy of Mervyn's LLC during the third quarter and very challenging conditions for retailers contributed to a difficult operating environment,” said Gerard Guez, Chairman and Interim CEO of Tarrant Apparel Group.
"We continued to focus on those areas of operations that we believe we can control. The Company has reduced expenses through staff reductions, and continues to closely monitor its sourcing and inventory management to reduce costs there as well. We also continue to closely monitor our customers, to ensure that we can meet their requirements, which can rapidly change in an environment like this, as well as their financial condition to make sure that we are taking appropriate credit risks. We will continue to seek further ways to reduce operating expenses, and to position the Company to benefit when consumer spending begins to increase."
The net loss for the first nine months of 2008 includes an impairment charge of goodwill pertaining to the Company's Chazzz division of $5.3 million, which was recorded in the period as a result of the bankruptcy filing of Mervyn's LLC and the rapidly declining business of another retail customer. Both retailers had been major customers of the division.
"The bankruptcy of Mervyn's LLC during the third quarter and very challenging conditions for retailers contributed to a difficult operating environment,” said Gerard Guez, Chairman and Interim CEO of Tarrant Apparel Group.
"We continued to focus on those areas of operations that we believe we can control. The Company has reduced expenses through staff reductions, and continues to closely monitor its sourcing and inventory management to reduce costs there as well. We also continue to closely monitor our customers, to ensure that we can meet their requirements, which can rapidly change in an environment like this, as well as their financial condition to make sure that we are taking appropriate credit risks. We will continue to seek further ways to reduce operating expenses, and to position the Company to benefit when consumer spending begins to increase."
Tarrant Apparel Group
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
