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): APRIL 30,1999
PARAGON TRADE BRANDS, INC.
(Exact name of registrant as specified in charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-11368
(Commission File Number)
91-1554663
(IRS Employer Identification No.)
180 TECHNOLOGY PARKWAY, NORCROSS, GA 30092
(Address of principal executive offices) (Zip Code)
(678) 969-5000
(Registrant's telephone number, including area code)
NONE
(Former name or former address, if changed since last report)
Page 1 of 5
Exhibit Index is at Page 3
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ITEM 5. OTHER EVENTS
See attached Exhibit 99.1
SIGNATURE
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.
PARAGON TRADE BRANDS, INC.
By: /S/ ALAN J. CYRON
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Name: Alan J. Cyron
Title: Chief Financial Officer
Dated: May 7, 1999
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EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
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99.1 Press Release issued by Paragon Trade Brands, Inc. on
April 30, 1999.
3
Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE
CONTACT: Kurt P. Ross
Guy B. Lawrence
K.P. ROSS, INC.
tel: (212) 308-3333
E-mail: [email protected]
PARAGON ANNOUNCES MANUFACTURING OPERATIONS WILL CEASE
AT BRAMPTON, ONTARIO PLANT
ACTION REFLECTS ONGOING EFFORTS TO REDUCE COSTS AND IMPROVE PRODUCTION
EFFICIENCY
Norcross, GA, April 30, 1999 - Paragon Trade Brands, Inc. (NYSE: PTB) today
announced that the Company's Canadian subsidiary, Paragon Trade Brands (Canada)
Inc., will cease manufacturing infant disposable diapers at its Brampton,
Ontario facility and anticipates taking a charge to earnings in the second
quarter of 1999 in connection with costs related to this action. The Brampton
plant currently employs approximately 113 people. The facility will curtail
manufacturing operations over the next few weeks while Paragon transitions
servicing its Canadian customers to its Harmony, Pennsylvania facility.
Thereafter, the Brampton facility will operate as a warehouse and distribution
facility to continue to deliver outstanding service to its Canadian customers.
Commenting on the cessation of manufacturing operations at the Brampton plant,
Chairman and Chief Executive Officer, Bobby Abraham, said, "As a result of our
continuing investments in the business, we have increased our productivity and
capacity across our North American manufacturing system. With this added
capacity, it is now more economical for Paragon to service our Canadian
customers from our facility in Harmony, Pennsylvania. While our Brampton
operation has been a high quality, efficient operation, it lacks economic scale
and is logistically disadvantaged to support our U.S. customers. The decision to
cease manufacturing operations at Brampton is part of the Company's ongoing
efforts to improve efficiency and reduce costs in our North American infant
disposable
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diaper business. We sincerely regret the impact of this action on our highly
skilled and committed Canadian associates. The Company will make every effort to
offer them opportunities in our U.S. operations."
Paragon Trade Brands is the leading manufacturer of store brand infant
disposable diapers in the United States and Canada. Paragon manufactures a line
of premium and economy diapers, training pants, and feminine care and adult
incontinence products, which are distributed throughout the United States and
Canada, primarily through grocery and food stores, mass merchandisers, warehouse
clubs, toy stores and drug stores that market the products under their own store
brand names. Paragon has also established international joint ventures in
Mexico, Argentina, Brazil and China for the sale of infant disposable diapers
and other absorbent personal care products.
Statements made in this press release, other than those concerning historical
information, should be considered forward-looking statements. Such statements
are subject to certain risks and uncertainties that could cause actual results
to differ materially from those expressed in the Company's forward-looking
statements. Factors which could affect the Company's financial results,
including, but not limited to: the Company's Chapter 11 filing; increased raw
material prices and product costs; new product and packaging introductions by
competitors; increased price and promotion pressure from competitors; Year 2000
compliance issues; and patent litigation, are described in the Company's Annual
Report on Form 10-K filed with the Securities and Exchange Commission. Readers
are cautioned not to place undue reliance on the forward-looking statements
contained herein, which speak only as of the date hereof, and which are made by
management pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995.
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ALAN J. CYRON
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
PARAGON TRADE BRANDS, INC.
180 TECHNOLOGY PARKWAY
NORCROSS, GA 30092
678/969-5200
