Hampshire Group Receives Favorable Legal Decision
Hampshire Group Receives Favorable Legal Decision
-- Company Awarded $6.5 Million in Rent Abatement --
NEW YORK--(BUSINESS WIRE)-- Hampshire Group, Limited (OTC Markets: HAMP), a leading provider of sportswear, today announced the results of the litigation related to its existing corporate office space located at 114 West 41st Street, New York, N.Y. The Company had been sued in the Civil Court of the City of New York by the court appointed Receiver of the property for approximately $7.1 million dollars in past due and unpaid rent.
Hampshire's position in the litigation was that construction work required as part of its lease was not completed to schedule and as a result, the Company was not obligated to pay full rent during certain past periods. Following a 22-day trial, the Court ruled on June 10, 2013 that Hampshire Group was entitled to a rent abatement for all but $181,314.53 of the plaintiff's claim. The Company has accrued approximately $6.1 million for disputed unpaid rent and is considering the appropriate accounting treatment of this accrual.
Additionally, the Court awarded Hampshire Group legal fees and expenses for their defense in this litigation. A separate hearing is currently scheduled to be held in July 2013 on the amount of the reimbursable legal fees. Hampshire Group was represented by Bryan Cave LLP.
The Receiver maintains the right to appeal the decision.
"We are extremely pleased with the outcome of the trial and are glad to have this issue favorably resolved," said Paul Buxbaum, CEO of Hampshire Group. "Looking ahead, we remain focused on subletting the excess space, while we work to grow the business and make the Company more efficient."
About Hampshire Group
Hampshire Group, Limited, (www.hamp.com) along with its wholly-owned subsidiaries, Hampshire Brands, Inc. and Rio Garment S.A., is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points. The Company specializes in designing and marketing men's sportswear to department stores, chain stores and mass market retailers under licensed brands, our own proprietary brands and the private labels of our customers. The Company operates a Honduras-based apparel manufacturer, designing, sourcing and manufacturing knit tops for men, women and children.
Cautionary Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect the Company's current views with respect to future events. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Readers 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 publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events. Readers are urged to review and consider carefully the various disclosures made by the Company in its Form 10-K and other Securities and Exchange Commission filings, which advise interested parties of certain factors that affect the Company's business. Risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward looking statements include, but are not limited to, the following: A prolonged period of depressed consumer spending; use of foreign suppliers for raw materials and manufacture of our products including a manufacturing facility based in Honduras; lack of an established public trading market for our common stock; decreases in business from or the loss of any one of our key customers; financial instability experienced by our customers; chargebacks and margin support payments; loss of or inability to renew certain licenses; change in consumer preferences and fashion trends, which could negatively affect acceptance of our products by retailers and consumers; failure of our manufacturers to use acceptable ethical business practices; failure to deliver quality products in a timely manner; problems with our distribution system and our ability to deliver products; labor disruptions at ports, our suppliers, manufacturers or distribution facilities; failure, inadequacy, interruption or security lapse of our information technology; failure to compete successfully in a highly competitive and fragmented industry; challenges integrating any business we have acquired or may acquire; potential impairment of acquired intangible assets; unanticipated expenses beyond the amount reserved on our balance sheet or unanticipated cash payments related to the ultimate resolution of income and other possible tax liabilities; significant adverse changes to international trade regulations; loss of certain key personnel which could negatively impact our ability to manage our business; our stockholders' rights plan potentially adversely affecting existing stockholders; risks related to the global economic, political and social conditions; fluctuation in the price of raw materials adversely affecting our results of operations; and energy and fuel costs are subject to adverse fluctuations and volatility.
MBS Value Partners
KEYWORDS: United States North America New York
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