Home / Knowledge / News / Fashion / Phoenix Footwear makes very measurable progress
Phoenix Footwear makes very measurable progress
May '09
Phoenix Footwear Group Inc reported its results of operations for the first quarter of fiscal 2009. For the first fiscal quarter ended April 4, 2009, the Company reported net sales from continuing operations of $6.1 million, down 35% compared to net sales from continuing operations of $9.4 million during the quarter ended March 29, 2008.

The Company recorded a loss from continuing operations during the first quarter of $2.7 million, or $0.33 per share, compared to a loss of $500,000, or $0.05 per share, for the first quarter of fiscal 2008. Included in the Company's first quarter loss for 2009 are severance charges totaling $1.0 million. During the first quarter of fiscal 2008, the Company recorded other income of $750,000 related to its divestiture of Altama Delta Corporation.

The loss from discontinued operations totaled $241,000 for the quarter ended April 4, 2009 compared to earnings of $199,000 for the quarter ended March 29, 2008. Included in discontinued operations are the Company's Tommy Bahama business unit and Chambers Belt Company.

As previously reported, on February 24, 2009, the Company entered into an Amendment to its License Agreement with Tommy Bahama that amended and terminated the License. In connection with ceasing the Tommy Bahama business operations, the Company has sold its entire Tommy Bahama product inventory and eliminated all related staff positions. In the first quarter of fiscal 2009, the Company incurred $286,000 of severance charges.

All but $38,000 of cash expenditures relating to employee severance costs incurred as of April 4, 2009 are expected to be paid by the end of fiscal 2009. In addition, the Company recorded non-cash charges in the first quarter of fiscal 2009 of $363,000 of inventory and other write-offs and $36,000 of fixed assets and intangible impairment charges.

Also, as previously reported on April 23, 2009, Chambers Belt Company (Chambers), a wholly owned subsidiary of the Company, entered into an Asset Purchase Agreement with Tandy Brands Accessories, Inc. (Tandy). Subject to the terms and conditions of the Asset Purchase Agreement, at closing, Tandy will purchase Chambers' manufacturing equipment, certain inventory at cost, certain intellectual property and customer relationships, and provide for payment at closing of the inventory costs, an additional $500,000 and a $430,000 advance payment against the earn-out payments which will be due.

The earn-out payments will be made on a monthly basis based on actual revenue and will equal 21.5% of the revenue of the acquired business during the first 12 months following closing, subject to a $2 million minimum. The sale of assets does not include the Company's accounts receivable, or Wrangler mass license or cash on hand. This transaction is expected to close during the second quarter.

The net proceeds of these two transactions together with the monetization and collection of Chambers' receivables following the closing and the collection of the earn-out payments, when fully collected, are expected to generate net cash in excess of $14 million, which would allow the Company to repay its bank indebtedness.

Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search