WestPoint 1Q op loss $38 million
Home & Textiles Today Staff -- Home Textiles Today, May 12, 2006
New York – American Retail Estate Partners LP, parent of WestPoint International, reported today that the home fashions subsidiary posted a $38 million operating loss on revenue of $243.5 million for the first quarter ended March 31.
AREP acquired the assets of the former WestPoint Stevens operation out of bankruptcy in August 2005 for $219.9 million in cash and a portion of the debt. AREP owns approximately two-thirds of WestPoint International’s equity. WestPoint International is the parent of WestPoint Home.
WestPoint’s expenses during the first quarter included $1.8 million in selling, general and administrative costs as well as $7.7 million in charges related to plants that will be closed. The division also posted $2.1 million in restructuring charges: $1.2 million for severance and $900,000 for continuing costs from closed plants.
According to an earlier filing with the Securities and Exchange Commission, WestPoint’s revenues during the period following AREP’s acquisition on Aug. 8, 2005 through Dec. 31, 2005 were $472.68 million. Operating loss during the period was $22.4 million, which included $1.7 million in costs for restructuring and plant closings.
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