EXHIBIT (c)(1)
I.C. Isaacs & Company, Inc.
3840 Bank Street
Baltimore, Maryland 21224-2522
(Nasdaq: ISAC)
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
- --------------- ---------------------------------
Eugene C. Wielepski Kelly Lofts - General Inquiries
Chief Financial Officer Lynn Saywer-Landau-Investor Inquiries
(410) 342-8200 Alan Goldsand - Media Inquiries
(212) 661-8030
August 27, 1998
I.C. ISAACS & COMPANY, INC. ANNOUNCES RESTRUCTURING OF SENIOR MANAGEMENT TEAM
AND EXPANSION OF SHARE REPURCHASE PROGRAM
BALTIMORE, MD - I.C. Isaacs & Company, Inc. (Nasdaq: ISAC) today announced that
its Board of Directors has approved a restructuring of the senior management
team resulting in a streamlined and clarified chain of command. Robert J. Arnot
will remain Chairman of the Board and the Company's sole Chief Executive
Officer. Gerald W. Lear will relinquish his position as Co-CEO, but will
continue to serve as President and will assume the title and responsibilities of
Chief Operating Officer.
Gary Brashers has resigned as Chief Operating Officer and as a member of the
Board of Directors. His resignation reflects the Company's reduction in domestic
manufacturing in favor of global sourcing to move forward as a marketing and
brand-driven company focused on design and image. Mr. Brashers will continue to
serve the Company as a consultant in connection with its existing manufacturing
operations in Mississippi and the expansion of the Company's manufacturing
operations in Mexico.
Thomas Ormandy has been named by the Board of Directors to fill the vacancy
created by Gary Brashers' resignation and will serve the remaining term which
expires in 1999 or until his successor has been elected or qualified. Mr.
Ormandy has been Vice President-Sales of the Company since 1986. Previously, he
was a salesman with Thompson and Company, an apparel manufacturer, since 1975.
Robert J. Arnot, Chairman and Chief Executive Officer, commented, "We believe
that the restructuring of our senior management team will streamline the
decision making process. During the past several months, we have aggressively
evaluated our operations and restructured and expanded our merchandising staff
to strengthen our market position. As a result, our Spring 1999 men's lines will
be introduced next week at the `Magic' show in Las Vegas, the industry's
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leading showcase for men's apparel retailers. Although we cannot predict
consumer reaction to our lines, we believe we are coming to market with some of
the strongest collections we have ever produced. We believe that the revised
management structure will enable the Company to pursue a clear direction as we
address the challenges ahead and strive to realize our long-term growth
potential.
The Board of Directors has also approved the expansion of the Company's share
repurchase program. Since authorizing the repurchase of up to $3.0 million of
its common stock on June 15, 1998, the Company has repurchased approximately
837,800 shares for an aggregate cost of approximately $2.1 million. The Board
has expanded the repurchase program from $3.0 million to $4.0 million. Any such
purchases will be made from time to time in the open market or privately
negotiated transactions, with the timing, volume and price of purchases at the
discretion of management.
I.C. Isaacs & Company, Inc. is a designer, manufacturer and marketer of
branded sportswear based in Baltimore and New York City. The Company offers
full lines of sportswear for young men, women and boys under the
BOSS-Registered Trademark- brand in the United States and Puerto Rico, for
men and women under the Beverly Hills Polo Club-Registered Trademark- brand
in the United States, Puerto Rico and Europe, and for men and, in the future,
women under the Girbaud-Registered Trademark- brand in the United States and
Puerto Rico. The Company also markets women's sportswear under its own "I.C.
Isaacs-Registered Trademark-," "Lord Isaacs-Registered Trademark-" and
"Pizzazz-Registered Trademark-" brand names and under third-party private
labels.
This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements include
indications regarding the intent, belief or current expectations of the
Company and its management, including indications of the strength of upcoming
collections. Such statements are subject to a variety of risks and
uncertainties, many of which are beyond the Company's control, which could
cause actual results to differ materially from those contemplated in such
forward-looking statements, including in particular the risks and
uncertainties described under "Risk Factors" in the Company's Prospectus
which include, among other things (i) changes in the marketplace for the
Company's products, including customer tastes, (ii) the introduction of new
products or pricing changes by the Company's competitors, (iii) changes in
the economy and (iv) termination of one or more of its agreements for use of
the BOSS-Registered Trademark-, Beverly Hills Polo Club-Registered Trademark-
and Girbaud-Registered Trademark- brand names and images in the manufacture
and sale of the Company's products. Existing and prospective investors are
cautioned not to place undue reliance on these forward-looking statements
which speak only as of the date hereof. The Company undertakes no obligation
to update or revise the information contained in this press release, whether
as a result of new information, future events or circumstances or otherwise.
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