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): January 5, 1997
FARAH INCORPORATED
(Exact name of registrant as specified in its charter)
Texas 1-5400 74-1061146
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
8889 Gateway West
El Paso, Texas 79925
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (915) 593-4444
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Item 5. Other Events
Attached is the Press Release disseminated by the Company on January
14, 1997.
Item 7. Exhibits
Exhibit
99.1 Press Release dated January 14, 1997.
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.
FARAH INCORPORATED
Date: January 21, 1997 By: /s/ Russell G. Gibson
Russell G. Gibson
Principal Financial Officer
FARAH
PRESS RELEASE--FOR IMMEDIATE RELEASE
For Information call: Russell G. Gibson
Chief Financial Officer
(915) 593-4502
EL PASO, TEXAS - JANUARY 14, 1996 -- FARAH INCORPORATED (NYSE:FRA) reported that
a fire occurred at the Company's leased manufacturing facility in Galway,
Ireland. Approximately 45% of the garments sold by the Company's U.K. subsidiary
are manufactured by the Galway facility and the Company's other Irish factory,
located in Kiltimagh. Sales for Farah U.K. were $30 million for fiscal 1996.
Certain inventory and manufacturing equipment were destroyed or damaged;
however, the Company believes it is fully insured for such losses. It is
anticipated that it will take a minimum of six months to fully restore
operations at the Galway facility. As such, the Company has taken immediate
steps to replace lost inventory and production by increasing its commitments
with outside contractors. It further believes that while there will be some
sales shortfall in the near future, there will be no long term impact on sales
in the U.K. Because of the lengthy time involved in rebuilding the Galway
facility and its impact on the Company's other Irish manufacturing facility, the
Company is evaluating whether it is economically feasible to continue operations
in Ireland. Should the Company decide not to continue operations in Ireland, the
cost of closing the Irish facilities will not be fully covered by insurance.
While the exact amount of any write off can not be determined at this time, any
pretax charge to earnings is not expected to exceed $2.5 million.
Richard C. Allender, Chairman and Chief Executive Officer reported, "while we
are certainly disappointed with the news of the fire, we are thankful that there
were no injuries. The fire will undoubtedly be a temporary setback in our U.K.
operations; however the Company has taken immediate action to begin sourcing
product with other contractors to minimize the disruption in operations. Our
Company has taken many successful steps to return itself to profitable
operations and we do not believe that the fire will have a significant impact on
our plans and future operating results.
"Business elsewhere has been extremely good. We recently closed our fiscal year
where we reported record sales and earnings in our Australian operations and
have seen that trend continue into the first quarter of fiscal 1997. Here in the
U.S., there have been several developments previously reported that we are very
encouraged about. Distribution of Farah product to mass merchants continues to
proceed as planned. We are very pleased with the sales performance of our newly
introduced line of Savane shirts during the Christmas season where sales
exceeded our expectations. Likewise, sales of our John Henry products at Sears
has been excellent as we continue to expand the program with them. Our new line
of womenswear is also performing quite nicely and we intend to offer it to more
customers and broaden the line in 1997."
