Warnaco Repositions Swimwear Portfolio
Consistent with its previously articulated strategy to rationalize its swimwear portfolio and implement supply chain initiatives to increase efficiencies, The Warnaco Group Inc. is repositioning its Swimwear Group as follows:
-- The company enters into a binding letter of intent to transfer its Mexican manufacturing operations to a company controlled by a local business partner. In connection with this transfer, and to ensure a smooth transition, the company will enter into a production agreement with the new owner. Upon consummation of the transaction, all of Warnaco's swimwear manufacturing will be outsourced.
-- The company enters into a binding letter of intent to transfer its Mexican manufacturing operations to a company controlled by a local business partner. In connection with this transfer, and to ensure a smooth transition, the company will enter into a production agreement with the new owner. Upon consummation of the transaction, all of Warnaco's swimwear manufacturing will be outsourced.
-- The company intends to sell certain designer swimwear brands, including Catalina, Anne Cole and Cole of California.
-- The company intends to exit its private label and designer swimwear businesses (with the exception of Calvin Klein swimwear) by June 30, 2008.
Following the completion of the repositioning, Warnaco Swimwear Group will consist of the Calvin Klein and Speedo swimwear brands. In addition, Warnaco has engaged Goldman Sachs to explore strategic alternatives for its Lejaby businesses, made up of the Lejaby, Rasurel and Elixir intimate apparel and swimwear brands.