(BSNS WIRE) Sirco Completes Sale of Its U.S. Wholesale Luggage Operation
Sirco Completes Sale of Its U.S. Wholesale Luggage Operations to Interbrand
LLC; Sirco is Now a Dedicated Internet and Telecommunications Company
Business & High Tech Editors
Norwalk, Conn.--(BUSINESS WIRE)--Aug. 12, 1999--Sirco
International Corp. (NASDAQ:SIRC) announced today the sale of its U.S.
wholesale luggage operations to Interbrand LLC. This transaction
completes a major step in Sirco's strategic plan to transform Sirco
into a high growth Internet and telecommunications company.
Paul Riss, Sirco's CFO, stated, "For almost two years, Sirco and
its affiliated companies have focused their limited resources on the
rapid growth and development of integrated communications services by
taking advantage of the competitive opportunities provided by the
Telecommunications Act of 1996 and the rapid advances in Internet and
telecommunications technologies. Though we will record a loss on the
sale of our luggage business, the company should be able to satisfy
virtually all of its debt related to the luggage operation by
year-end. We will now be able to focus all of our resources on the
continued development of our growing portfolio of telecommunications
and Internet businesses."
"We have utilized a 'customer first' strategy by focusing on the
development and growth of our customer base through the deployment of
front-end customer care and billing systems, which enable us to
provide an integrated suite of communications services to our
customers while maintaining back-end network deployment flexibility,"
continued Mr. Riss. "This strategy has positioned us to take advantage
of new opportunities such as the use of leased facilities from the
ILECs and the deployment of a DSL-focused network architecture. With
this sale, we are now free to channel our energy into the continued
growth of our telecom and Internet businesses."
Robert McMeekin, CEO of Interbrand LLC, stated, "The acquisition
of the Sirco luggage division is consistent with our strategy to
diversify our channels of distribution and product lines, while
enhancing our management team. Sirco's trademarks and licenses bring
great value and opportunity to Interbrand. Their expertise and
relationships with mass merchants will add an important channel of
distribution that we were previously unable to pursue. The luggage
operations will now become part of a company that is large enough to
be a competitive EDI supplier to the national chain stores, without
sacrificing the exceptional service and quality that Sirco's customers
have always enjoyed."
Sirco International Corp. is a diversified publicly traded
company that invests in, develops and incubates Internet and
telecommunications-related businesses. Sirco's portfolio of businesses
include its wholly-owned subsidiaries, Essex Communications, a New
York-based CLEC, WebQuill Internet Services, a Connecticut-based
Internet service provider, and Airline Ventures, Inc., a Texas-based
E-Commerce retailer; and its affiliates, Access One Communications, a
Florida-based CLEC, RiderPoint, Inc., an online marketer of insurance
and financial products, and SkyClub Communications Holding Corp., an
Internet marketer of satellite-based, high speed Internet and digital
television systems and services.
Interbrand LLC is a diversified personal products company that
designs, manufactures and markets products under license from
companies such as The Timberland Company and Greg Norman Collection (a
division of Reebok).
This release contains forward-looking statements that involve
risks and uncertainties. The Company's actual results may differ
materially from the results discussed in the forward-looking
statements. Factors that might cause such a difference include, among
others, availability of management; availability, terms, and
deployment of capital; the Company's ability to successfully market
its services to current and new customers, generate customer demand
for its product and services in the geographical areas in which the
Company can operate, access new markets, negotiate and maintain
suitable reseller and interconnection agreements with the incumbent
local exchange carriers, and negotiate and maintain suitable vendor
relationships, all in a timely manner, at reasonable cost and on
satisfactory terms and conditions, as well as regulatory, legislative
and judicial developments that could cause actual results to vary in
such forward-looking statements.
--30--tia/ny*
CONTACT: Sirco International Corp.
Paul Riss, CFO Sirco
203/750-1000
E-mail: paulriss@webquill.com
or
Interbrand LLC
Robert McMeekin, CEO Interbrand
212/268-9200
KEYWORD: CONNECTICUT
INDUSTRY KEYWORD: APPAREL/TEXTILES RETAIL TELECOMMUNICATIONS
COMED INTERACTIVE/MULTIMEDIA/INTERNET MERGERS/ACQ
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