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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): September 28, 1998
INNOVO GROUP INC.
(Exact name of registrant as specified in charter)
Delaware 0-18926 11-2928178
(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
27 North Main Street, Springfield, Tennessee 37172
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615) 384-0100
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Item 7. Financial Statements and Exhibits.
(c) The following Exhibits are filed with or incorporated by reference in
this Report as indicated below:
99.1 Press Release dated September 28, 1998.
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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.
INNOVO GROUP INC.
(Registrant)
By: /s/ L. E. Smith
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L.E. Smith, Chairman and
Chief Executive Officer
Date: October 14, 1998
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Exhibit 99.1
Press Release dated: September 28, 1998
NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
INNOVO ENTERS INTO LEASE/PURCHASE AGREEMENT FOR
THIMBLE SQUARE, INC.
SPRINGFIELD, TENNESSEE, September 28,1998 -- INNOVO GROUP INC. (NASDAQ
Symbol: INNOD), a manufacturer and supplier to national and international
retailers, including Wal-Mart, K-Mart, Michael's, Hobby Lobby, Dollar General,
Goody's and Fabri-Center, announced today that it has finalized a lease/purchase
agreement of its Thimble Square division with Confident Colors, L.L.C.
L.E. Smith, CEO of Innovo, stated "the disposal of Thimble Square is a
positive move for Innovo. The elimination of the Thimble Square subsidiary will
allow Innovo to fully direct its time and financial resources towards growing
the core businesses of the company. Through 8/31/98 Thimble Square has accounted
for $280,998 in operating losses and has absorbed in excess of $20,000 of
working capital per month."
In disposing of Thimble Square, Innovo will incur a one-time charge of
$1,208,545 of which $639,000 is goodwill. The lease/purchase of Thimble Square,
however, will cease further losses and will allow for $240,000 of working
capital annually to be directed towards Innovo's core businesses.
Innovo Group Inc. designs markets, manufacturers and distributes
fashion and sports licensed nylon and canvas products for the multi-billion
dollar crafts industry and retail sector in the United States and Europe. Under
licensing agreements, the Company's sports lines feature the designs of the NBA,
NFL, Major League Baseball, NHL, numerous collegiate teams, Walt Disney and
Warner Brothers. Innovo also has certain exclusive and non-exclusive
manufacturing and distribution rights for NASCAR licensed products.
Listed: NASDAQ SmallCap Exchange
Trading Symbol: INNO (INNOD)
Contact: Jay Furrow, V.P. of Corporate Development, (615) 384-0100
