Movie Star reports short-term impact on operation due to Hurricane
14 Sep '05
2 min read
Leading apparel maker & supplier Movie Star Inc announced that Hurricane Katrina is having a short-term impact upon its business operations this quarter ending September 30, 2005. Movie Star's distribution center in Poplarville, Mississippi, was forced to close from August 29th to September 6th as a result of the hurricane.
Operations at the Poplarville distribution center resumed once power was restored to the facility early last week. Because some of the Company's employees have been unable to return to work, the facility is currently operating at approximately 65% of capacity.
Mel Knigin, Movie Star's President and Chief Executive Officer, stated: "They have been diverting some of incoming inventory to a public warehouse operation in Los Angeles, California and to former Petersburg, Pennsylvania distribution center. The Petersburg facility, which was recently closed, has been reopened on a temporary basis to assist with shipping goods to customers. However, notwithstanding our best efforts, some orders may be delayed and shipped in our second quarter instead of this first quarter. They have been working closely with our customers and, to date, they have been understanding of the situation. They believe that they will continue to work with us but there can be no assurances of their continued cooperation and accommodation, as needed.
They are also working with insurance companies to minimize the financial impact of this occurrence. At this time,they are unable to estimate the financial consequences of the hurricane on the Company's results of operations."
marketing@alchempro.com
