-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JtjCOwVueH2QcxNDuBjtCaITL/4bGvGUeU7VcdnsGVN3CkoFvt125M+sx6TiqkNV ocUfscAmGV9CMnYZlUJATQ== 0001193805-04-001927.txt : 20041217 0001193805-04-001927.hdr.sgml : 20041217 20041217102512 ACCESSION NUMBER: 0001193805-04-001927 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041215 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041217 DATE AS OF CHANGE: 20041217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DONNKENNY INC CENTRAL INDEX KEY: 0000029693 STANDARD INDUSTRIAL CLASSIFICATION: WOMEN'S, MISSES', AND JUNIORS OUTERWEAR [2330] IRS NUMBER: 510228891 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21940 FILM NUMBER: 041210072 BUSINESS ADDRESS: STREET 1: 1411 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10018 BUSINESS PHONE: 2127307770 MAIL ADDRESS: STREET 1: 1411 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10018 8-K 1 e400976_8k-donnkenny.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): December 15, 2004 ----------------- Donnkenny, Inc. --------------- (Exact name of registrant as specified in its charter) Delaware 0-21940 51-0228891 -------- ------- ---------- (State or jurisdiction of (Commission (I.R.S. Employer incorporation) File No.) Identification No.) 1411 Broadway, New York, NY 10018 --------------------------------- (Address of principal executive offices) (Zip Code) (212) 790-3900 -------------- (Registrant's telephone number, including area code) Not applicable -------------- (Former Name of Former Address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Section 8 - Other Events Item 8.01 - Other Events On December 15, 2004, an article appeared in Women's Wear Daily regarding the company's financial restructuring. A copy of this article is attached as Exhibit 99.1. Section 9 - Financial Statements and Exhibits Item 9.01 - Financial Statements and Exhibits Exhibits (c) Exhibit 99.1 Women's Wear Daily Article Published on December 15, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DONNKENNY, INC. By: /s/ Daniel H. Levy ---------------------------- Daniel H. Levy Chief Executive Officer Date: December 17, 2004 EX-99.1 2 e400976_ex99-1.txt ARTICLE PUBLISHED ON 12/15/04. WWD, WEDNESDAY, DECEMBER 15, 2004 WWW.WWD.COM Restructuring Donnkenny Weighing Its Options By Vicki M. Young NEW YORK -- Donnkenny Inc., the women's sportswear manufacturer that has been in restructuring mode since the summer, is considering whether to be put up for sale, seek financial backers or stay a freestanding company. "The company is exploring all strategic options, which may include remaining as an independent company, identifying investors and seeking a strategic acquirer for its business," Allan Ellinger, a director of Marketing Management Group, which Donnkenny hired in August to help with the restructuring, said in an interview. Donnkenny said last month that for the quarter ended Sept. 30, it was not in compliance with the financial covenants in the company's credit agreement with its lender, CIT Group/Commercial Services, and that CIT has waived the noncompliance. Daniel Levy, chief executive officer of the apparel firm, said in an interview that the company is laying off staff to reduce overhead and acknowledged that it is late paying some bills. "We'll come out better and stronger in the end," he said. "It's been a difficult road." Levy added that Donnkenny has submitted its 2005 fiscal plan to CIT and is revising it as needed, "We're moving forward," he said. CIT did not return calls for comment. Ellinger emphasized that Donnkenny is in operation and its lender continues to provide adequate support. "Donnkenny has developed a significant Pierre Cardin business with Goody's and sizable Nicole Miller and Nicole businesses," he said. "It also still has a very strong Donnkenny pant business. The company [so far] has restructured its operations focusing on fewer, but more meaningful, business units." The Nicole Miller licensed business targets department stores, while the Nicole label is a J.C. Penney exclusive. According to Donnkenny's Form 10-Q, or quarterly report, filed with the Securities and Exchange Commission for the three months ended Sept. 30, the company last year discontinued the marketing of products under the Rebecca Jones label. As a result, it is discontinuing its Victoria Jones and Casey & Max labels. In addition, Donnkenny said it intends to stop the use of the Z. Cavaricci and Bill Blass trademarks. The SEC filing said Donnkenny will also discontinue its coat division operations. On the plus side, sales for products under the Nicole Miller trademarks for suits will begin in 2005, according to the filing. Donnkenny's loss in the third quarter was $5 million, or $1.15 a share, compared with a loss of $386,000 or 9 cents, in the same year-ago period. Sales fell by 3.4 percent to $22.6 million from $23.4 million last year. Gross margin as a percentage of sales was 7.5 percent, versus 22.2 percent a year ago. For the nine months, the loss was $9.6 million, or $2.20 a share, compared with loss of $1.9 million, or 43 cents, in the same 2003 quarter. Sales rose 2 percent to $61.4 million from $60.2 million, while gross margin as a percentage of sales was 14 percent compared with 24.5 percent last year. -----END PRIVACY-ENHANCED MESSAGE-----