R.G. Barry Corporation Secures Financing for March
11 Marzo 2004 - 3:00PM
PR Newswire (US)
R.G. Barry Corporation Secures Financing for March Zacks Retires,
Von Lehman Named Interim CEO/President PICKERINGTON, Ohio, March 11
/PRNewswire-FirstCall/ -- R.G. Barry Corporation said today that it
has received a commitment from its current lender to advance the
Company additional funds in March 2004, in an amount which the
Company expects to be sufficient to meet its financing requirements
for operations during the remainder of the month. Negotiations are
continuing with several lenders to secure the Company's financing
requirements for the remainder of 2004. R.G. Barry Corporation also
reported today that Gordon Zacks, 71, has announced his decision to
retire as President and Chief Executive Officer of the Company,
effective immediately.Mr. Zacks will relinquish his day-to-day
responsibilities but will continue as Senior Chairman of the Board.
"Gordon Zacks has devoted 50 years of his life to building R.G.
Barry Corporation, and for the past 24 years he has provided
direction and leadership as our Company's Chief Executive Officer,"
said Edward M. Stan, speaking on behalf of the Company's Board of
Directors. "We thank him for his innumerable contributions, and we
are pleased that he will continue to provide his unique vision as a
director and the Company's Senior Chairman of the Board." Thomas M.
Von Lehman, 54, has been named the Company's interim President and
CEO. Mr. Von Lehman joins R.G. Barry from The Meridian Group, an
investment banking and corporate renewal consulting firm currently
engaged by the Company to provide consulting services in regard to
R.G. Barry's financing requirements and operational success. "Tom
and The Meridian Group have been working with our senior management
for the past few months. Their mission has been to secure financing
for 2004, assess our business model, recommend changes to our
business model and work with our management to build a transition
plan to move R.G. Barry forward," Senior Chairman Zacks said. "As a
corporate renewal specialist with extensive senior management
experience, Tom is highly qualified to lead a turnaround of our
Company. I will assist and support him in any way he believes will
be helpful. My objective is to see R.G. Barry returned to financial
health." R.G. Barry Corporation has entered into a six-month
employment agreement with Von Lehman. Pursuant to that agreement,
the Company is granting him stock options to purchase up to 100,000
shares of the Company with a second grant of an additional 50,000
if the Company and Von Lehman agree to a three-month extension of
the employment agreement beyond the initial six-month term. The
stock options will have an exercise price equal to the market price
of the shares on the date of grant and will have a two-year term.
The stock options vest at the end of each employment period unless
certain events occur prior to that time. "Safe Harbor" Statement
under the Private Securities Litigation Reform Act of 1995: The
statements in this release, other than statements of historical
fact, are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. There are factors
that could cause results and outcomes to differ materially from
those anticipated by our forward-looking statements. These factors
include, but are not limited to, the Company's ability to secure
financing for its operations after March, satisfactory completion
of due diligence and credit review by the lenders with whom it is
currently in negotiations, a decision by the Company's current
lender to declare the current financing in default, the Company's
actual cash requirements, the cost of obtaining new financing,
continuing support of the Company's suppliers and customers and
sales results for the Company's products. Other risks to the
Company's business are detailed in our press releases, shareholder
communications and Securities and Exchange Commission filings.
DATASOURCE: R.G. Barry Corporation CONTACT: Daniel D. Viren, Senior
Vice President-Finance, +1-614-864-6400, or Roy Youst, Director
Corporate Communications, +1-614-864-6400, both of R.G. Barry
Corporation
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