Hanesbrands: Mervyn's bankruptcy to affect 3Q results

WINSTON-SALEM, N.C. Hanesbrands that it will include the impact of Mervyn's store liquidation in its third quarter results as a material subsequent event. As planned, Hanesbrands intends to report full third-quarter results at the end of trading on the New York Stock Exchange on Oct. 29.

Mervyn’s, a regional retailer in California and the Southwest, originally filed for reorganization under Chapter 11 on July 29. The bad-debt charge now reflects the intentions of Mervyn’s to wind down its business and conduct going-out-of-business sales at 149 remaining store locations under Chapter 11 of the U.S. Bankruptcy Code.

With the subsequent-event impact, Hanesbrands now expects pretax charges related to the Mervyn’s bankruptcy to be $5.5 million, or 4 cents per diluted share after tax, for the quarter ended Sept. 27.