Hampshire Group delays quarterly report filing

10 Aug '06

3 min read

Michael Jackson, interim Chairman of the Board, stated: "The previously announced Audit Committee investigation is continuing. The company has been advised that the SEC is conducting an investigation and has also been contacted by the US Attorney's office. The company is cooperating fully with these investigations. When the Audit Committee investigation has been completed, the company will issue a press release and make an appropriate filing with the SEC to apprise our shareholders and other constituents of the results of the investigation."

Michael Culang, interim CEO, noted, "The company continues to be focused on its brands and pursuing new market sectors through both its recently acquired businesses and extensions of its existing brands."

The company also announced that a derivative suit has been filed in the United States District Court for the District of South Carolina naming the company's Directors, an officer and the company as defendants. The suit alleges, among other things, that the named individual defendants breached their fiduciary duties to the company, abused control relationships, engaged in gross mismanagement of the company, wasted company assets and were unjustly enriched. The suit seeks damages and injunctive relief on behalf of the company.

Hampshire Group Limited is a diversified apparel company, believed to be the largest supplier of women's and men's sweaters in North America and a leading supplier of women's related separates.

Hampshire Group Limited

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