SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
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DESIGNS, INC.
(Name of Registrant as Specified in its Charter)
JEWELCOR MANAGEMENT, INC.
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of filing fee (Check the appropriate box):
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FOR IMMEDIATE RELEASE
Contact: James R. Verano (570) 822-6277, ext. 15
DESIGNS' CHAIRMAN AND FOUNDER SUPPORTS NEW SLATE OF DIRECTORS
Wilkes-Barre, Pennsylvania, September 14, 1999 --- Jewelcor Management, Inc.
("JMI"), the owner of approximately 9.9% of the common stock of Designs Inc.
(NASDAQ/DESI), announced today that it received a proxy from Stanley Berger to
vote his shares of stock for JMI's slate of directors, and for JMI's
shareholder proposal to terminate the Company's poison pill. Mr. Berger, the
current Chairman of the Board, owns 965,321 shares of Designs' common stock,
representing approximately 6% of the shares outstanding. JMI's proposals will
be voted on at Designs' Annual Meeting of Shareholders scheduled for
October 4, 1999 in Boston, MA.
James Verano, the Chief Financial Officer of JMI, stated "we are pleased that
Mr. Berger has voted for our proposals. It's not often that you see the
Chairman of the Board vote for an entirely new slate of directors." Mr. Berger,
the largest individual shareholder and Founder of the Company, has a 22 year
relationship with Levi Strauss. Verano stated, "We believe the Board exercised
poor judgement by not re-nominating Mr. Berger as a candidate. It was obvious
to us that the Board did not want to tolerate his dissenting views. If JMI's
Nominees are elected at the annual meeting, they expect to invite Mr. Berger
to rejoin the Board. Although there can be no assurance that Mr. Berger would
agree to serve as a member of the Board if asked, we believe Mr. Berger would
be a valuable asset.
"Under the leadership of Joel Reichman, Designs has suffered enormous
operating losses of approximately $78 million in the last 2 1/2 years. What is
particularly alarming is that comparable store sales have decreased for 3 1/2
consecutive years, and the trend is continuing. Based on the numerous telephone
calls that we received from other shareholders supporting our proposals, it is
clear to us that shareholders are disgusted, and want to see a change in the
Company's management. JMI's slate of independent, distinguished nominees offers
a depth of retail experience that we believe the Company desperately needs to
survive."
