This restructuring comes as the Company recently completed its integration of FunTees textiles into its existing Maiden, N.C. facility, which has improved operating margins in the FunTees business by approximately 300 basis points over pre-acquisition operating margin levels.
Additionally, construction of the Company's new textile facility in Honduras is on schedule and the Company expects to open this facility in the second quarter of fiscal 2008. The Company expects to be producing 500,000 pounds of fabric per week by its fourth quarter of fiscal 2008 and anticipates increasing production to one million pounds per week by its third quarter of fiscal 2009.
Robert W. Humphreys, President and CEO, commented, “We continue to focus on improving the performance of our wholesale activewear business. After evaluating our alternatives, we determined that we must eliminate some of our domestic manufacturing capacity."
"It is difficult to eliminate the jobs of these employees who have contributed significantly to our growth and success over the years. However, we believe the relocation of some of our U.S. textile capacity to Central America is necessary to be cost-competitive against other global producers. We believe our actions will result in improved margins and profitability in fiscal 2008 and beyond.”
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