Tag-It Pacific offers information on restructuring initiative
04 Nov '05
3 min read
California based fashion apparel retailer Tag-It Pacific Inc, updated its restructuring initiative announced on August 22 and revised its estimate for the associated charges for its third fiscal quarter to $5-7 million, up from its earlier estimate of $4-5 million.
"Company implemented changes have reached, and will continue to reach, all areas of their business and how they run it. They have made and continue to make significant progress towards their previously stated goal to reduce their current operating costs by approximately 25 to 30 percent, or $5 to $6 million, on an annualized basis," commented newly appointed CEO, Stephen Forte. "It is their desire to return to profitability as quickly as possible."
In the past 60 days, the Company has:
-- Cut employee head count from 290 to 119, a 59 percent reduction. -- Completely shuttered its manufacturing factory in North Carolina. -- Essentially exited Mexican operations, and has made agreements with key customers to drop ship products FOB Hong Kong to eliminate the need for local facilities and to reduce its associated freight charges. -- Closed its Gardena warehouse facility, and is working to consolidate others. -- Significantly simplified operational procedures, cutting order-processing time in its Hong Kong facility by 80 percent. -- Re-allocated certain operating expenses to its Hong Kong business unit to be more reflective of current operating activities and growthpotential.
marketing@alchempro.com
