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Knitting / Apparel

Vanity Fair Implements Plan To Improve Profitability

Vanity Fair Corp., Greensboro, N.C., announced a series of actions to position the company to achieve its long-term earnings growth target of 8 to 10 percent. Now is the time to take a hard look at our portfolio of businesses and our operations and determine the optimal mix for the future, said Mackey McDonald, president and CEO.Specifically, the company plans to exit nonstrategic workwear businesses, implement a new jeans strategy in Japan, consolidate several distribution centers in both the United States and Europe, reorganize the Latin American jeans business and restructure its international intimates business to improve the profitability of its discount store locations.In conjuction with these actions, the company will take a charge to fourth-quarter earnings of approximately $120 to $140 million, or $0.68 to $0.79 per share. The cash requirement related to these actions is approximately $40 million.


January 2001




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