Friday, May 21, 1999

Brazos to sell its units

The Cincinnati Enquirer

        Apparel maker Brazos Sportswear Inc., which filed for Chapter 11 bankruptcy protection in January, Thursday said it plans to sell “substantially all” of its businesses to raise money to pay its creditors.

        A spokeswoman for the company said Brazos has set a minimum bid of $23.5 million for its seven businesses, none of which is in Cincinnati. Brazos is finalizing the closure of its Batavia manufacturing plant, which it announced last December. The shuttering results in the loss of 460 jobs.

        Brenda Adrian, the Brazos spokeswoman, said the manufacturer is not entering Chapter 7 liquidation but a “regimented sale of assets” under the Chapter 11 umbrella.

        “It's a way of maximizing the recovery for all the creditors,” she said. “This is a better way to do it than to keep the company intact.”

        Ms. Adrian said Brazos will relocate its Batavia corporate offices to their former home in the Velva Sheen building in Fairfax, though a relocation date is not set.

        Brazos also appointed its chief financial officer, Clayton Chambers, to interim chief executive through the sale process. Osnos & Co., a corporate turnaround firm retained by Brazos in December, resigned in connection with the sale process.

        In a statement, Mr. Chambers said a prompt sale of the company's business units is in the best interests of creditors, employees, customers and suppliers.

        Deadline for business bids is June 8. The auction sale is scheduled for 10 a.m., June 10 in New York.

        Brazos employs about 150 people in Greater Cincinnati, about 25 of whom work at the headquarters — remaining warehouse workers are being phased out.


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