Board Also Approves Additional Stock Buyback Plan
NASHVILLE, Tenn., Jan. 13 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) today
announced a plan to reduce its management and administrative workforce by 11%,
requiring a one-time charge of approximately $1.5 million for severance and
related items in the Company's fourth quarter ending January 30, 1999.
The reductions are expected to result in annualized expense savings of
approximately $3.7 million. The Company said that the workforce reductions,
equivalent to approximately 60 positions, would primarily involve personnel at
its corporate headquarters and that most reductions would be effected by the
end of January.
Genesco President and Chief Executive Officer Ben T. Harris said that the
planned reductions reflect the Company's continuing commitment to improving
profitability and creating shareholder value. Harris continued, "Following
the divestiture of the western boot division and the transition out of our
leased shoe department operations in the former Mercantile chain, we carefully
reviewed the structure and level of staffing in all our operations to ensure
that we execute our strategies as efficiently and effectively as possible. It
is always a difficult decision to reduce the workforce; however, we believe
that the changes being made reflect our commitment to sustain the profitable
growth our businesses have enjoyed in recent years."
Genesco also announced that its board of directors has approved an
expansion of its common stock repurchase program, authorizing the purchase of
up to 2.2 million shares in addition to the 2.6 million shares authorized in
August 1998. The Company said that as of January 11, 1999, it had repurchased
a total of 2.2 million common shares since the commencement of the program
last August. As of January 11, 1999, the Company had 23,965,000 common shares
outstanding.
"We view the board's expansion of our authority to repurchase stock as an
affirmation of its continuing confidence in the strength of our business and
in the Company's intrinsic value," said Harris.
The forward-looking statements contained in this release are subject to a
number of risks and uncertainties. Actual results may be materially different
from the expectations reflected in the forward-looking statements. The
factors that could result in material differences include but are not limited
to changes in the number or identity of personnel to be included in the
planned workforce reduction or in the amount of associated severance and other
payments and changes in the Company's financial condition or in conditions in
the financial markets that could have an impact on the Company's ability or
willingness to repurchase stock.
Genesco, based in Nashville, markets and distributes branded footwear.
Genesco's owned and licensed footwear brands, sold through both wholesale and
retail channels of distribution, include Johnston & Murphy, Dockers Footwear
and Nautica Footwear. Genesco's products are sold at wholesale to more than
2,700 retailers, including the Company's own network of 592 footwear retail
stores in the U.S., operated principally under the names Journeys, Johnston &
Murphy, Jarman and Underground Station. The Company also operates the
Volunteer Leather Company, a leather tanning and finishing business.
SOURCE Genesco Inc.
-0- 01/13/99
/CONTACT: Financial: James S. Gulmi, 615-367-8325, or Media: Claire S.
McCall, 615-367-8283, both of Genesco Inc./
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 352750/
(GCO) |
