(Filed Under Financial and General Interest News). Mervyns Liquidation Costs Hanesbrands $5.5M
Underwear manufacturer Hanesbrands Inc. reports the closure of retailer Mervyns LLC. will cost it $5.5m in third quarter charges.
Mervyn's, a regional retailer in California and the Southwest, originally filed for reorganization under Chapter 11 on July 29, 2008. The bad-debt charge now reflects the intentions of Mervyn's to wind down its business and conduct going-out-of-business sales at 149 remaining store locations under Chapter 11 of the U.S. Bankruptcy Code.
With the subsequent-event impact, Hanesbrands now expects pretax charges related to the Mervyn's bankruptcy to be $5.5 million, or $0.04 per diluted share after tax, for the quarter ended Sept. 27, 2008.
However, Hanesbrands intends to report full third-quarter results at the end of trading on the New York Stock Exchange on Oct. 29, 2008.
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