Sunday June 27, 1:28 pm Eastern Time
Sirena Apparel Group files for bankruptcy
VERNON, Calif., June 27 (Reuters) - The Sirena Apparel Group Inc., a
maker of branded and private-label swimwear, intimate apparel and
resortwear including Anne Klein and Liz Claiborne, last week said it filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code.
The company also said Friday it named Richard Matthews interim chief executive officer and Howard Hedinger chairman. The two replace former Chairman and Chief Executive Maurice ''Corky'' Newman, who was ousted June 8.
Newman's firing came after accounting irregularities were discovered, which prompted the South El Monte, Calif.-based company to restate its earnings for the first three quarters of its fiscal year ending June 30, 1999.
Matthews is a business consultant with corporate restructuring experience. Hedinger is a company director and president and chairman of American Industries Inc., a Sirena stockholder.
The company also announced that Ellison Morgan has resigned from the company's board.
Sirena said it would continue to operate under court protection from creditors, while it works out a plan of reorganization. The petition was filed in the U.S. Bankruptcy Court for the Central District of California.
The company also said that Foothill Capital Corp. has preliminarily agreed to provide Sirena with financing.
The company said it decided to seek bankruptcy after it determined there was substantial risk that it would be unable to secure sufficient financing for the remainder of calendar year 1999 because of the accounting irregularities.
Sirena, whose stock has been halted since June 8, last traded at 2. The company's 52-week high was 9, its low 1-7/8.
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OWWW!
We had Loehmanns, then Hechinger, and Harnischfeger, now Sirena. Quite a crop this season. |
