Loss from operations for the first six months of 2008 was $5.4 million, compared to income from operations of $2.6 million in the comparable prior period of 2007. The net loss, including the charges discussed above, was $5.5 million, or $(0.17) per share, compared to $0.2 million, or $(0.01) per share in the 2007 comparable period.
"The bankruptcy of Mervyn's LLC subsequent to the quarter-end has reversed what would have been a profitable quarter. It also contributed to the impairment of the value of the goodwill relating to our Chazzz division. We continue to operate in a difficult environment, as retailers continue to struggle,” said Gerard Guez, Chairman and Interim CEO of Tarrant Apparel Group. "We have focused on those areas that we believe we can control.
The Company has tightly managed expenses, while looking for ways to further improve sourcing and inventory management. We also continue to work closely with our customers, to ensure that we align our products with their current interests. We will continue to seek further ways to reduce operating expenses, while positioning the Company for growth when consumer spending begins to increase."