<ARTICLE>                     5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
FINANCIAL  STATEMENTS OF SIGNAL APPAREL  COMPANY,  INC. FOR THE QUARTERLY PERIOD
ENDED  OCTOBER 3, 1998 AND IS  QUALIFIED  IN ITS  ENTIRETY BY  REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                                   1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-END>                                   OCT-3-1998
<CASH>                                                                       18
<SECURITIES>                                                                  0
<RECEIVABLES>                                                             7,418
<ALLOWANCES>                                                             (1,916)
<INVENTORY>                                                              12,603
<CURRENT-ASSETS>                                                         18,957
<PP&E>                                                                   27,204
<DEPRECIATION>                                                           22,285
<TOTAL-ASSETS>                                                           35,691
<CURRENT-LIABILITIES>                                                    63,160
<BONDS>                                                                  21,054
<PREFERRED-MANDATORY>                                                         0
<PREFERRED>                                                              48,746
<COMMON>                                                                    325
<OTHER-SE>                                                              (97,594)
<TOTAL-LIABILITY-AND-EQUITY>                                             35,691
<SALES>                                                                  39,341
<TOTAL-REVENUES>                                                         39,341
<CGS>                                                                    32,163
<TOTAL-COSTS>                                                            49,284
<OTHER-EXPENSES>                                                           (555)
<LOSS-PROVISION>                                                              0
<INTEREST-EXPENSE>                                                        6,961
<INCOME-PRETAX>                                                         (16,349)
<INCOME-TAX>                                                                  0
<INCOME-CONTINUING>                                                     (16,349)
<DISCONTINUED>                                                                0
<EXTRAORDINARY>                                                               0
<CHANGES>                                                                     0
<NET-INCOME>                                                            (16,349)
<EPS-PRIMARY>                                                              (.50)
<EPS-DILUTED>                                                              (.50)