Burlington Industries Inc., Greensboro, N.C., and Tarrent Apparel Group, Los Angeles, recently
announced that they have terminated their discussions on forming a 50/50 joint venture company to
provide garment-manufacturing services for the branded casualwear market (See K/A News,
ATI June 1999.).Since both companies are completing fully integrated garment-making
facilities in Mexico, the principal value of the proposed joint venture would have been to enable
us to accelerate our efforts to meet the growing demand for high-quality garment services, said
George W. Henderson III, chairman and CEO of Burlington.After considerable review, we have
recognized that the proposed joint venture would not materially advance our present
timetable.Gerard Guez, Tarrents chairman and CEO said: After much careful consideration, we have
concluded that our proposed joint venture with Burlington would not result in the operational
synergies we originally anticipated. While our original goal was to leverage our expertise as well
as the extensive infrastructure we have built, the complexities of the proposed joint venture
proved prohibitive to achieving this objective.We remain excited about our ever-expanding
capabilities as a value-added supplier to our customers and are confident in our prospects for
long-term growth. We are fully committed to the continued development of sourcing for wholesale
branded businesses on our own.Tarrent also commented on anticipated operating results for the
balance of the year. The company reiterated that this action has not altered its comfort with
projected earnings for 1999, which are expected to reach $2.00 per share.”While we are disappointed
to have made the difficult decision not to pursue this joint venture, we remain confident in both
current and long-term growth prospects for our business, and are well on our way to achieving our
highest quarterly sales and earnings ever,” Guez said.
August 1999
