NEW YORK (AP) _ The Warnaco Group Inc., maker of Calvin Klein jeans and Speedo swimsuits, filed for Chapter 11 bankruptcy protection Monday, citing a general economic downturn, a weak retail environment and mounting debt.
The $2.25 billion apparel giant said the voluntary Bankruptcy Court filing ``was the only way to secure additional operating liquidity, stabilize the company, and maintain sufficient flexibility to restructure its debt and continue its operating turnaround.''
The company's stock had plummeted from a high of $44 in mid-1998 to 39 cents on Friday. The New York Stock Exchange delayed trading of Warnaco stock on Monday because of the company's announcement.
Warnaco said its international subsidiaries, including operating entities in Canada, Mexico, Europe, Latin America and Asia, will be largely unaffected by the filing, and that day-to-day business operations will continue uninterrupted.
The New York-based company also said it had secured $600 million in financing from a consortium of banks led by Citibank, J.P Morgan Chase & Co. and the Bank of Nova Scotia, subject to bankruptcy court approval.