<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ___________ to ____________
Commission file number 1-11368
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
Paragon Trade Brands, Inc.
180 Technology Parkway
Norcross, Georgia 30092
Page 1 of 17
------
Exhibit Index at Page 16
------
<PAGE>
I. REPORT
Financial Statements and Schedules as of December 31, 1995 and 1994, Together
With Auditors' Report, Prepared in Accordance With the Financial Reporting
Requirements of ERISA.
<PAGE>
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
EIN: 91-1554663
PIN: 001
FINANCIAL STATEMENTS AND SCHEDULES
AS OF DECEMBER 31, 1995 AND 1994
TOGETHER WITH AUDITORS' REPORT
<PAGE>
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
FINANCIAL STATEMENTS AND SCHEDULES
----------------------------------
DECEMBER 31, 1995 AND 1994
--------------------------
INDEX
-----
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
FINANCIAL STATEMENTS
Statement of Net Assets Available for Benefits as of
December 31, 1995
Statement of Net Assets Available for Benefits as of
December 31, 1994
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1995
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
SUPPLEMENTAL INFORMATION
Schedule I. Item 27a -- Schedule of Assets Held for
Investment Purposes as of December 31, 1995
Schedule II. Item 27d -- Schedule of Reportable
Transactions for the Year Ended December 31, 1995
Schedule III. Item 27b -- Schedule of Loans in Default
as of December 31, 1995
4
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator of
the Paragon
Retirement Investment Savings Management Plan:
We have audited the accompanying statements of net assets available for benefits
of Paragon Retirement Investment Savings Management Plan as of December 31, 1995
and 1994, and the related statement of changes in net assets available for
benefits for the year ended December 31, 1995. These financial statements are
the responsibility of the sponsoring company's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1995 and 1994, and the changes in its net assets available for
benefits for the year ended December 31, 1995, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes, reportable transactions and loans in default are
presented for the purpose of additional analysis and are not a required part of
the basic financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The Fund Information in
the statement of net assets available for benefits and the statement of changes
in net assets available for benefits is presented for purposes of additional
analysis, rather than to present the net assets available for benefits and
changes in net assets available for benefits of each fund. The supplemental
schedules and Fund Information have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
Seattle, Washington
June 24, 1996
5
<PAGE>
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
----------------------------------------------
AS OF DECEMBER 31, 1995
-----------------------
<TABLE>
<CAPTION>
Participant-Directed
-----------------------------------------------------------------
Vanguard Vanguard Vanguard
Wellesley Vanguard U.S. International Bond
Income Index 500 Vanguard Growth Growth Index
Fund Portfolio Windsor II Fund Fund Fund
------------ ---------- ---------- ---------- ------------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at fair value-
Registered investment $1,284,420 $1,189,080 $1,504,909 $1,385,943 $143,295 $411,177
companies
Participant loans - - - - - -
---------- ---------- ---------- ---------- -------- --------
1,284,420 1,189,080 1,504,909 1,385,943 143,295 411,177
Employee contributions 33,589 26,544 29,254 28,220 3,370 9,369
receivable
Employer contributions - - - - - -
receivable
Loan payments receivable 1,703 1,159 1,450 988 354 554
---------- ---------- ---------- --------- -------- -------
Total assets 1,319,712 1,216,783 1,535,613 1,415,151 147,019 421,100
LIABILITIES:
Excess contributions - - - - - -
---------- ---------- ---------- --------- -------- -------
NET ASSETS AVAILABLE FOR
BENEFITS $1,319,712 $1,216,783 $1,535,613 $1,415,151 $147,019 $421,100
========== ========== ========== ========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Vanguard Vanguard
Investment Paragon Vanguard
Contract Common Loan
Trust Stock Fund Fund Other Total
--------- ---------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments at fair value-
Registered investment
companies $504,974 $5,257,372 $ - $ - $11,681,170
Participant loans - - 190,225 - 190,225
-------- ---------- ------- ------- -----------
504,974 5,257,372 190,225 - 11,871,395
Employee contributions
receivable 9,320 9,653 - - 149,319
Employer contributions
receivable - 772,278 - - 772,278
Loan payments receivable 409 1,635 (8,252) - -
-------- ---------- ------- ------- -----------
Total assets 514,703 6,040,938 181,973 - 12,792,992
LIABILITIES:
Excess contributions - - - (28,504) (28,504)
-------- ---------- ------- ------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS $514,703 $6,040,938 $181,973 $(28,504) $12,764,488
======== ========== ======== ======== ===========
</TABLE>
The accompanying notes and schedules are an integral part of this statement.
6
<PAGE>
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
----------------------------------------------
AS OF DECEMBER 31, 1994
-----------------------
<TABLE>
<CAPTION>
Participant-Directed
-------------------------------------------------------------------------
Vanguard Vanguard Vanguard
Wellesley Vanguard Vanguard Vanguard International Bond
Income Index 500 Windsor U.S. Growth Index
Fund Portfolio II Growth Fund Fund Fund
----------- --------- -------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at fair value-
Registered investment companies $759,346 $569,357 $682,629 $670,681 $55,146 $287,162
Participant loans - - - - - -
-------- -------- ------- -------- --------- ---------
759,346 569,357 682,629 670,681 55,146 287,162
Employee contributions
receivable 25,128 17,225 17,464 11,815 1,665 7,705
Employer contributions
receivable - - - - - -
Loan payments receivable 433 325 227 132 55 97
-------- -------- ------- -------- --------- ---------
Total assets 784,907 586,907 700,320 682,628 56,866 294,964
LIABILITIES:
Excess contributions - - - - - -
-------- -------- ------- -------- ------- --------
NET ASSETS AVAILABLE FOR
BENEFITS $784,907 $586,907 $700,320 $682,628 $56,866 $294,964
======== ======== ======== ======== ======= ========
</TABLE>
<TABLE>
<CAPTION>
Participant-Directed
----------------------------------------------------------
Vanguard
Investment Paragon
Contract Common Loan
Trust Stock Fund Fund Other Total
--------- ---------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments at fair value-
Registered investment companies $395,680 $1,272,867 $ - $ - $4,692,868
Participant loans - - 64,810 - 64,810
-------- --------- ------ ------- ---------
395,680 1,272,867 64,810 - 4,757,678
Employee contributions
receivable 8,068 - - - 89,070
Employer contributions
receivable - 1,569,400 - - 1,569,400
Loan payments receivable 30 - (1,299) - -
Total assets -------- --------- ------ ------- ---------
403,778 2,842,267 63,511 - 6,416,148
LIABILITIES:
Excess contributions - - - (50,035) (50,035)
-------- --------- ------ ------- ---------
NET ASSETS AVAILABLE FOR
BENEFITS $403,778 $2,842,267 $63,511 $(50,035) $6,366,113
======== ========= ======= ======== ==========
</TABLE>
The accompanying notes and schedules are an integral part of this statement.
7
<PAGE>
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
---------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
<TABLE>
<CAPTION>
Participant-Directed
-------------------------------------------------------------------
Vanguard Vanguard Vanguard
Wellesley Vanguard Vanguard International Bond
Income Index 500 Vanguard U.S. Growth Index
Fund Portfolio Windsor II Growth Fund Fund Fund
------------ ---------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year $ 784,907 $ 586,907 $ 700,320 $682,628 $56,866 $294,964
---------- ---------- ---------- -------- ------- --------
SOURCES:
Employee contributions 385,299 277,641 322,398 290,787 35,409 115,076
Employer contributions - - - - - -
Rollovers 2,357 102,626 149,376 123,065 19,598 2,271
Loan payments 12,256 7,815 8,467 5,308 2,588 2,655
Investment income 79,575 24,496 79,974 53,748 3,778 23,606
Net appreciation
(depreciation) in fair
value of assets 175,153 239,853 248,733 259,001 9,141 34,557
Interfund transfers 61,393 127,512 222,842 142,322 54,748 32,512
---------- --------- --------- ---------- -------- --------
716,033 779,943 1,031,790 874,231 125,262 210,677
---------- --------- --------- ---------- -------- --------
APPLICATIONS:
Benefit withdrawals 66,921 74,199 84,046 83,822 1,453 19,991
Loan withdrawals 32,527 24,282 25,171 16,046 3,647 11,144
Fees and expenses 170 - - 30 20 10
Interfund transfers 81,610 51,586 87,280 41,810 29,989 53,396
---------- --------- --------- ---------- -------- --------
181,228 150,067 196,497 141,708 35,109 84,541
---------- --------- --------- ---------- -------- --------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $1,319,712 $1,216,783 $1,535,613 $1,415,151 $147,019 $421,100
========== ========== ========== ========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Participant-Directed
------------------------------------------------------------
Vanguard Paragon
Investment Common
Contract Stock Loan
Trust Fund Fund Other Total
---------- ---------- -------- --------- ----------
<C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year $403,778 $2,842,267 $63,511 $(50,035) $6,366,113
-------- ---------- ------- -------- ----------
SOURCES:
Employee contributions 125,492 162,606 - (28,504) 1,686,204
Employer contributions - 1,229,454 - - 1,229,454
Rollovers 35,232 49,130 - - 483,655
Loan payments 2,857 9,513 (51,459) - -
Investment income 32,074 - 8,607 - 305,858
Net appreciation
(depreciation) in fair
value of assets - 2,332,493 - - 3,298,931
Interfund transfers 218,613 429,153 - - 1,289,095
-------- ---------- ------- -------- ----------
414,268 4,212,349 (42,852) (28,504) 8,293,197
-------- ---------- ------- -------- ----------
APPLICATIONS:
Benefit withdrawals 69,823 213,389 4,358 (50,035) 567,967
Loan withdrawals 9,587 43,268 (165,672) - -
Fees and expenses 37,510 20 - - 37,760
Interfund transfers 186,423 757,001 - - 1,289,095
-------- ---------- ------- -------- ----------
303,343 1,013,678 (161,314) (50,035) 1,894,822
-------- ---------- ------- -------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $514,703 $6,040,938 $181,973 $(28,504) $12,764,488
======== ========== ======== ======== ===========
</TABLE>
The accompanying notes and schedules are an integral part of this statement.
8
<PAGE>
PARAGON
--------
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
-------------------------------------------
DECEMBER 31, 1995
-----------------
1. PLAN DESCRIPTION:
-----------------
The following description of the Paragon Retirement Investment Savings
Management Plan (the Plan) is provided for general information purposes only.
More complete information regarding the Plan's provisions may be found in the
plan document.
General
- - -------
The Plan is a defined contribution plan established by Paragon Trade Brands,
Inc. (the Company), under the provisions of Sections 401(a) and 401(k) of the
Internal Revenue Code (IRC), for the benefit of eligible employees of the
Company. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974, as amended (ERISA).
The Paragon Profit Sharing Plan (Profit Sharing Plan) was originally adopted,
effective the closing date of the initial public offering in January 1993 by
Weyerhaeuser Company of the shares of common stock of the Company. The Paragon
401(k) Savings Plan (401(k) Plan) was originally adopted, effective February 2,
1993, by the Company. Effective October 1, 1993, the Profit Sharing Plan and
the 401(k) Plan were merged and restated as the Plan. Effective January 1,
1995, the Plan was renamed the Paragon Retirement Investment Savings Management
Plan.
Eligibility
- - -----------
All regular employees of the Company, who have completed one year of service,
are eligible to participate in the Plan, except for employees covered by a
collective bargaining agreement that does not provide for participation in the
Plan, employees who are nonresident aliens and earn no U.S.-source income,
employees classified as bag stickering and hourly paid administrative employees.
Plan Administration
- - -------------------
The Plan is administered by the Plan Administrative Committee (the Committee),
which is appointed by the Board of Directors of the Company. The Plan's
investments are held under a trust agreement with Vanguard Fiduciary Trust
Company (Vanguard).
9
<PAGE>
Contributions
- - -------------
Eligible employees can contribute up to 15% of compensation as defined by the
Plan, subject to certain limitations under the IRC. The Company provides a
matching contribution equal to 50% of each participant's contributions that do
not exceed 6% of compensation. The Company may, at its discretion, make profit
sharing contributions to the Plan in amounts to be determined by the Board of
Directors. Forfeitures are used to reduce matching and profit sharing
contributions.
Vesting
- - -------
Participants are fully vested in their contributions and the earnings thereon.
Participants become fully vested in matching and profit sharing contributions
when they attain normal retirement age, as defined by the Plan, or after
completing five years of service, whichever occurs first. Upon a participant's
death or disability, account balances become fully vested.
Benefits
- - --------
Upon termination of service, a participant may elect to receive an amount equal
to the value of the vested interest in his or her account, if the vested
interest is greater than $3,500. For vested interests not exceeding $3,500, a
distribution will be made to the participant within 60 days after the last day
of the plan year in which the termination occurs. All benefit payments are made
in lump-sum distributions. Special distribution rules apply to benefit payments
upon attainment of age 70-1/2 and in-service withdrawals. In these cases, the
plan document should be consulted.
Participant Accounts
- - --------------------
Individual accounts are maintained for each of the Plan's participants to
reflect the participant's contributions, matching and profit sharing
contributions, as well as the participant's share of the Plan's income or loss
and any related administrative expenses. The trust funds are valued on each
business day. Participant accounts are adjusted as of each valuation date to
reflect any distributions made and contributions received, including income or
loss on trust fund investments. Allocations of earnings, gains and losses are
based on the proportion of each participant's account invested in a particular
fund to the total of all participant account balances invested in such fund.
Loans to Participants
- - ---------------------
A participant may borrow up to the lesser of 50% of his or her vested account
balance, excluding profit sharing contributions, or $50,000, reduced by the
highest loan amount outstanding during the preceding 12-month period, with a
minimum loan amount of $1,000. Loans are repayable through payroll deductions
over periods ranging up to 60 months, except for loans used to purchase the
participant's primary residence, which can be repaid over a longer period. All
loans bear interest at rates set by the Administrative Committee, based upon the
rates charged by commercial lenders for similar loans. As of December 31, 1995,
four loans totaling $2,828 were in default with respect to interest and
principal payments.
10
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
-------------------------------------------
Basis of Accounting
- - -------------------
The accompanying financial statements are prepared on the accrual basis of
accounting.
Income Recognition
- - ------------------
Security transactions are accounted for on the date securities are purchased or
sold (trade date). Dividend income is recorded on the ex-dividend date.
Interest income is recognized when earned. Net appreciation (depreciation) in
the fair value of assets represents the change in the fair value of assets and
is computed using the average cost method, based on the beginning of year market
value, or the cost of the security if it is acquired during the year.
Investment Valuation
- - --------------------
The Plan's investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices, which represent the net
asset value of shares held for the Plan at year-end. The values for the Company
Stock Fund are based on the closing share prices of the Company's common stock.
Administrative Expenses
- - -----------------------
Investment advisory fees for portfolio management by Vanguard Funds are paid
directly from fund earnings. Other administrative expenses are paid by the
Company.
Use of Estimates
- - ----------------
The preparation of the financial statements requires the use of estimates.
Actual results could differ from those estimates.
Other
- - -----
Excess contributions to active plan participants, as presented in the statement
of net assets available for benefits, represent the excess employee
contributions, above the IRC limitations, made during 1995 which will be
returned to those employees.
3. INVESTMENTS:
------------
Investment Options
- - ------------------
The following participant-directed investment options are available to
participants:
Vanguard Wellesley Income Fund - seeks current income consistent with
reasonable risk by investing in a portfolio of high-quality bonds and
stocks. The fund also offers the potential for moderate growth of capital.
11
<PAGE>
Vanguard Index 500 Portfolio - attempts to provide investment results that
correspond to the price and yield performance of publicly traded stocks, in
the aggregate, as represented by the Standard & Poor's 500 Composite Stock
Price Index.
Vanguard Windsor II - seeks to provide long-term capital appreciation and
dividend income by investing in common stocks. As a secondary objective,
the fund also seeks a reasonable level of current income.
Vanguard U.S. Growth Fund - seeks long-term capital appreciation by
investing in a diversified portfolio of common stocks with above-average
growth potential.
Vanguard International Growth Fund - seeks long-term capital growth by
investing in the common stocks of companies based outside of the United
States.
Vanguard Bond Index Fund - seeks to match the total return of the Lehman
Brothers Aggregate Bond Index.
Vanguard Investment Contract Trust - seeks to provide an attractive rate of
interest and safety of principal.
Paragon Common Stock Fund - designed to invest primarily in Company common
stock. Profit sharing and matching contributions are made to this account
and may be distributed to the other investment options at the discretion of
the participant.
Information Certified by the Trustee
- - ------------------------------------
The following information included in the financial statements and supplemental
schedules was provided and certified by Vanguard as complete and accurate:
. Investments
. Investment income
. Net appreciation (depreciation) in fair value of investments
. Schedule of assets held for investment purposes
. Schedule of reportable transactions
4. TAX STATUS:
-----------
The Plan has received a favorable determination letter from the Internal Revenue
Service. The Plan Administrator believes the Plan is being operated as
designed.
5. PLAN TERMINATION:
-----------------
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of plan termination,
participants will become fully vested in their account balances.
12
<PAGE>
SCHEDULE I
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
ID# 91-1554663-001
------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
AS OF DECEMBER 31, 1995
-----------------------
<TABLE>
<CAPTION>
Issuer/Description Units Cost Current Value
------------------ -------- -------- -------------
<S> <C> <C> <C>
*Vanguard - Wellesley Income Fund 62,839 $1,186,793 $ 1,284,420
*Vanguard - Index 500 Portfolio 20,644 967,635 1,189,080
*Vanguard - Windsor II 72,842 1,313,985 1,504,909
*Vanguard - U.S. Growth Fund 68,105 1,127,165 1,385,943
*Vanguard - International Growth Fund 9,540 134,368 143,295
*Vanguard - Bond Index Fund 40,550 397,267 411,177
*Vanguard - Investment Contract Trust 504,974 504,974 504,974
*Paragon Common Stock Fund 815,096 4,133,916 5,257,372
Participant Loan Fund (interest rate 8%
to 11%) - 190,225 190,225
---------- -----------
$9,956,328 $11,871,395
========== ===========
</TABLE>
* Indicates a party-in-interest.
The accompanying notes are an integral part of this schedule.
13
<PAGE>
SCHEDULE II
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
ID# 91-1554663-001
------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
<TABLE>
<CAPTION>
Number Number
Identity of of Purchase of Sales Selling Price Net Gain
Party Involved Description of Asset Transactions Purchase Price Transactions at Fair Value Cost or (Loss)
- - ---------------- -------------------- ------------ -------------- ------------ ------------- ---- --------
Category (iii) - Series of transactions in excess of 5% of plan assets at January 1, 1995:
<S> <C> <C> <C> <C> <C> <C> <C>
*Vanguard Wellesley Income Fund 51 $ 529,941 95 $ 180,021 $ 174,656 $ 5,365
*Vanguard Vanguard Index 500 Portfolio 71 528,284 87 148,414 131,572 16,842
*Vanguard Vanguard Windsor II 77 767,405 91 193,858 184,271 9,587
*Vanguard Vanguard U.S. Growth Fund 65 595,746 68 139,484 119,288 20,196
*Vanguard Investment Contract Trust 81 412,639 55 303,345 303,345 -
*Paragon Trade Paragon Common Stock Fund 73 2,665,690 152 1,013,677 1,161,695 (148,018)
Brands
</TABLE>
* Indicates a party-in-interest.
There were no series (i) (ii) or (iv) category transactions.
The accompanying notes are an integral part of this schedule.
14
<PAGE>
SCHEDULE III
PARAGON
RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN
---------------------------------------------
ID# 91-1554663-001
------------------
ITEM 27b - SCHEDULE OF LOANS IN DEFAULT
---------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
<TABLE>
<CAPTION>
Amount Received During Reporting Year
Identity of Original Amount Unpaid Balance Detailed
Obligator of Loan Principal Interest at End of Year Description of Loan
- - --------------------- --------------- ------------ ----------- -------------- ------------------------------
<S> <C> <C> <C> <C> <C>
Cullens, Brian E. $1,303 $980 $60 $ 116 Issued 8/30/94 matures 1/5/96
interest rate at 9.25%
Garrett Jr., Loyd J. 1,034 115 10 804 Issued 6/5/95 matures interest
rate at 11%
Smith, Thomas W. 1,254 808 42 311 Issued 2/15/95 matures 3/15/96
interest rate at 11%
Vartenisian, Kenneth 1,819 191 70 1,597 Issued 2/24/95 matures 3/6/98
interest rate at 11%
</TABLE>
<TABLE>
<CAPTION>
Amount Overdue
Identity of -------------------------
Obligator Principal Interest
- - --------------------- ------------ -----------
<S> <C> <C>
Cullens, Brian E. $334 $ 6
Garrett Jr., Loyd J. 591 34
Smith, Thomas W. 218 7
Vartenisian, Kenneth 242 74
</TABLE>
The accompanying notes are an integral part of this schedule.
15
<PAGE>
II. EXHIBITS
Exhibit Page
------- ----
1. Consent of Accountants 17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
PARAGON TRADE BRANDS, INC.
PROFIT SHARING AND SAVINGS PLAN
By: /s/ Stanley L. Bulger
---------------------
Stanley L. Bulger
Vice President - Human Resources
16
<PAGE>
EXHIBIT 23.1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated June 24, 1996, on the financial statements of the
Paragon Retirement Investment Savings Management Plan, included in the Paragon
Retirement Investment Savings Management Plan annual report on Form 11-K for the
year ended December 31, 1995, into the Company's previously filed Registration
Statement File No. 33-73726 on Form S-8.
Arthur Andersen LLP
Seattle, Washington
June 27, 1996
