Florscheim troubles from inventory glitch

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Florsheim Group Inc., the Chicago, Il. shoe firm which has seen
its earnings erode over the past five years, is coming under
pressure from its lenders, which recently forced Florsheim to
renegotiate the terms of its $110 million credit facility. The move
follows poor first quarter results, which were brought on by problems
with a new inventory system.
The renegotiated credit arrangement,
with BT Commercial Corp., resulted in an additional $500,000 in
fees for Florsheim, which also had to agree to higher interest rates.
And while the company may be able to turn its product line around
by developing more casual footwear, Florsheim is laden with a
debtload that resulted in $10 million in interest fees last year alone.

Bankruptcy Headlines

-- spider (spider0@usa.net), June 05, 2000


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