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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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): MAY 14, 1999
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BISCAYNE APPAREL, INC.
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(Exact name of registrant as specified in its charter)
FLORIDA 1-9635 65-0200397
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1373 BROAD STREET
CLIFTON, NJ 07013
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(Address of principal executive offices)(Zip Code)
(973) 473-3240
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Registrant's telephone number, including area code:
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(Former Name or Former Address, if Changed Since Last Report)
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CURRENT REPORT ON FORM 8-K
BISCAYNE APPAREL, INC.
MAY 14, 1999
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
Biscayne Apparel, Inc. (the "Registrant") announced that its subsidiary,
Biscayne Apparel International, Inc. ("BAII") and BAII's subsidiary Mackintosh
of New England Co. ("Mackintosh") each voluntarily filed for protection under
Chapter 11 of Title 11 of the United States Bankruptcy Code. The Chapter 11
petitions were filed with the United States Bankruptcy Court for the Southern
District of New York on April 30, 1999.
Mackintosh and BAII sustained continuing losses from 1995 to 1997. As a result,
Registrant determined to dispose of Mackintosh's and BAII's major operating
assets. In November, 1998, BAII and the Registrant consummated a sale of
certain assets relating to the Varon business to American Basics Company, LLC.
The assets included vendor numbers used in the Varon business and certain
tradenames. In December 1998, Mackintosh and BAII sold certain Mackintosh
assets to C.J. Apparel Co., Inc. The assets included trademarks, applications,
labels, vendor numbers used in Mackintosh's business, certain raw material
inventory owned by Mackintosh, and all patterns, sketches, samples, brochures,
swatches, designs, artwork, and advertising materials used in the Mackintosh
business. The net proceeds from each of these sales were used to pay down loans
due to Mackintosh's and BAII's secured bank creditors.
Registrant, BAII, and Mackintosh, together with M&L International, Inc.,
another wholly-owned subsidiary of Registrant, are parties to a two-year
revolving credit facility and a four-year term loan. The collateral for the
credit facility is comprised of all of the four parties' assets. These four
parties were also guarantors of each other's debt.
As of April 30, 1999, Mackintosh and BAII together owed their secured bank
creditors less than $100,000 for costs, expenses, and attorneys fees, which
amount is secured by all of BAII's and Mackintosh's assets.
At this time, none of either Mackintosh's or BAII's property is in the
possession or custody of any other custodian, public officer, mortgagee,
pledgee, assignee of rents, or secured creditor, or agent for any such entity.
Mackintosh and BAII are continuing to wind down their respective businesses,
and are engaged primarily in collecting accounts receivable. Each of Mackintosh
and BAII will submit schedules projecting their respective cash receipts and
disbursements, net cash gain or loss, and receivables expected to accrue for a
period following the date of filing of its Chapter 11 petition.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(A) Financial Statements of Business Acquired
Not Applicable
(B) Pro Forma Financial Information
Not Applicable
(C) Exhibits
DESCRIPTION
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99.1 Press Release, dated May 3, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Current Report to be signed on its behalf
by the undersigned thereunto duly authorized.
BISCAYNE APPAREL, INC.
Date: May 14, 1999
By: /s/ Peter Vandenberg, Jr.
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Peter Vandenberg, Jr.
President, Chief Operating
Officer, Treasurer and
Chief Financial Officer
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EXHIBIT INDEX
99.1 Press Release, dated May 3, 1999
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Exhibit 99.1
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
Peter Vandenberg, Jr.
President and Chief Operating Officer
(973) 473-3240 x15
BISCAYNE APPAREL'S SUBSIDIARIES
FILE FOR PROTECTION UNDER CHAPTER 11 BANKRUPTCY
CLIFTON, NJ - (May 3, 1999) Biscayne Apparel, Inc. ("Biscayne"), (NASDAQ
over-the-counter (OTC) bulletin board: BISD) today announced that its
subsidiary Biscayne Apparel International, Inc. ("BAII") and BAII's subsidiary
Mackintosh of New England, Co. ("Macintosh") filed for protection under Chapter
11 of the Bankruptcy Code on April 30, 1999. The Chapter 11 petitions were
filed with the United States Bankruptcy Court for the Southern District of New
York.
The majority of the assets and the operations of both BAII and Mackintosh,
other than accounts receivable, were sold to third parties during the fourth
quarter of 1998.
Biscayne and its other subsidiary, M&L International, Inc. ("M & L"), had filed
for protection under Chapter 11 of the Bankruptcy Code on February 5, 1999. On
March 5, 1999 Biscayne sold the operations and a substantial portion of the
assets of M&L, other than accounts receivable, to a third party.
