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): March 16, 2000
SWANK, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 1-5354 04-1886990
(State or Other (Commission File Number) (I.R.S. Employer
Jurisdiction of Identification No.)
Incorporation)
6 Hazel Street
Attleboro, Massachusetts 02703
(Address of Principal Executive Offices) (Zip Code)
(Registrant's telephone number, including area code): (508) 222-3400
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On March 16, 2000, Swank, Inc. (the "Company") issued a
press release announcing, among other things, that as part of its
ongoing program to reduce costs and increase profitability while
maintaining the Company's high quality production standards, the
Company intends to cease manufacturing operations at its jewelry
production facility in Attleboro, Massachusetts. The Company
indicated that it has already transferred certain of its women's
jewelry production to third party vendors and to its majority-
owned subsidiary, Joyas y Cueros de Costa Rica, S.A. The press
release indicated that manufacturing operations at Attleboro will
cease following the orderly transition of merchandise
requirements to Joyas y Cueros and the Company's other resources,
which is expected to be completed during the second quarter of
2000, and that in connection with the closure, the Company will
take a charge against pretax earnings of approximately $1,400,000
to $1,600,000 in the first quarter of 2000 to cover employee
severance and related costs and expenses. Additional expenses
associated with the write-down of certain inventory, currently
estimated at $550,000, are also likely to be incurred in fiscal
2000 as the Company completes the process of resourcing its
remaining merchandise requirements.
A copy of the press release, which is incorporated by
reference herein and made a part hereof, is filed with this
Current Report on Form 8-K as Exhibit 99.
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
Exhibit No. Description
99 Press Release of the Company dated March 16, 2000.
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.
Date: March 16, 2000 SWANK, INC.
By: /s/ John Tulin
John Tulin, President
EXHIBIT INDEX
Exhibit No. Description
99 Press Release of the Company dated March 16, 2000
Exhibit 99
SWANK ANNOUNCES PLAN TO CEASE DOMESTIC JEWELRY
MANUFACTURING OPERATIONS
NEW YORK, NEW YORK, March 16, 2000. SWANK, INC.
(Nasdaq:SNKI). As part of its ongoing program to reduce costs
and increase profitability while maintaining the Company's high
quality production standards, Swank, Inc. today announced that it
intends to cease manufacturing operations at its jewelry
production facility in Attleboro, Massachusetts. The Company has
already transferred certain of its women's jewelry production to
third party vendors and to its majority-owned subsidiary, Joyas y
Cueros de Costa Rica, S.A. All manufacturing operations will
cease following the orderly transition of the remaining
merchandise requirements to Joyas y Cueros and other vendors,
which is expected to be completed in the second quarter of the
year 2000.
Commenting on this action, John Tulin, President and Chief
Executive Officer of Swank, stated, "We regret that after so long
we are unable to continue manufacturing in Attleboro,
Massachusetts. While we will maintain our administrative
headquarters and distribution facility in Massachusetts, we have
concluded that our jewelry manufacturing plant can no longer be
competitive in light of our increasing responsibility to lower
our costs and to increase gross margins for the Company and its
customers. The closing of our manufacturing operations in
Attleboro is another step in our program of global sourcing which
we believe will considerably benefit Swank, its customers and its
stockholders."
In connection with the closure, the Company will take a
charge against pretax earnings of approximately $1,400,000 to
$1,600,000 in the first quarter of 2000 to cover employee
severance and related costs and expenses. Additional expenses
associated with the write-down of certain inventory, currently
estimated at $550,000, are also likely to be incurred in fiscal
2000 as the Company completes the process of resourcing its
remaining merchandise requirements.
Swank manufactures and markets men's belts, personal leather
goods and jewelry and women's jewelry. The Company distributes
its products to retail outlets throughout the United States and
in numerous foreign countries. These products, which are known
throughout the world, are distributed under the names "Kenneth
Cole", "DKNY", "Claiborne", "Guess?", "Anne Klein", "Anne Klein
II", "Geoffrey Beene", "John Henry", "Yves Saint Laurent",
"Pierre Cardin", "Colours by Alexander Julian", and "Swank".
Swank also manufactures jewelry and leather items for
distribution under private labels.
This press release contains forward-looking statements which
are based upon current expectations and involve certain risks and
uncertainties. Under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, readers should note
that these statements may be impacted by, and the Company's
actual performance and results may vary as a result of, a number
of factors, including general economic and business conditions,
competition in the men's and women's accessories and jewelry
markets, continuing sales trends, pricing and consumer
preferences.
