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Report Date : |
13.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
WARNACO
GLOBAL SOURCING LTD. |
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Formerly Known As : |
Designer Holdings
Overseas Ltd. |
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Registered Office : |
17/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
08.10.1996 |
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Com. Reg. No.: |
20280656 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Garment Buying Office, Importer and Exporter of Pyjamas, robes, camisoles, seamless vests, briefs, swimwear, brassieres, etc. |
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No. of Employees : |
180. (Hong Kong) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Hong Kong - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
|
Source : CIA |
WARNACO GLOBAL
SOURCING LTD.
17/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2798 3688; 2621 3979
FAX: 2795 6632
Managing Director: Mr. Stanley Parker Silverstein
Incorporated on: 8th October, 1996.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Garment Buying Office, Importer and Exporter.
Group Net Revenues: US$2,513,388,000 (Year ended 31-12-2011)
Employees: 180. (Hong Kong)
Main Dealing Banker: JPMorgan Chase Bank N.A., Hong Kong Branch.
Banking Relation: Good.
Registered Head
Office:-
17/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.
Holding Company:-
WF Overseas Fashion CV, Bermuda.
Ultimate Holding
Company:-
The Warnaco Group Inc., USA.
Associated/Affiliated
Companies:-
Warnaco Group of
Companies
4278941 Canada Inc., Canada.
AEB Participacoes Ltda., Brazil.
Authentic Fitness On-Line Inc., USA.
Calvin Klein Jeanswear Co., USA.
CCC Acquisition Corporation, USA.
CK Jeanswear Asia Ltd., Hong Kong.
CK Jeanswear Australia Pty. Ltd., Australia.
CK Jeanswear Europe S.r.l., Italy.
CK Jeanswear Korea Ltd., Korea.
CK Jeanswear NZ Ltd., New Zealand.
CKJ Fashion (Shanghai) Ltd., China.
CKJ Holdings Inc., USA.
CKJ UK Ltd., UK.
CKU.com Inc., USA.
Designer Holdings Ltd.,
USA.
Distribuidor Textil Warnaco Chile Ltda., Chile.
Distribuidor Textil Warnaco Peru S.A., Peru.
Eratex GmbH, Germany.
Euro Retail S.r.l., Italy.
FA France Sarl., France.
Gold Lightening Ltd., Hong Kong.
Jeanswear Services Ltd., UK.
Lenitex-Warnaco Handelsgesellschaft m.b.H, Austria.
Lintex-Warnaco S.a.r.l., Switzerland.
Mullion International Ltd., British Virgin Islands.
Ocean Pacific Apparel Corporation, USA
Vista de Yucatan S.A. de C.V., Mexico.
Warnaco (HK) Ltd., Barbados.
Warnaco (Macao) Co. Ltd., Macao.
Warnaco Apparel SA (Proprietary) Ltd., South Africa.
Warnaco Argentina S.r.l.,
Argentina.
Warnaco Asia Ltd., Hong Kong.
Warnaco B.V., Netherlands.
Warnaco Belgium Sprl, Belgium.
Warnaco Brasil Participacoes Ltda., Brazil.
Warnaco Commerce (Shanghai) Co. Ltd., China.
Warnaco Denmark A/S, Denmark.
Warnaco France S.A.R.L., France.
Warnaco Germany GmbH, Germany.
Warnaco Inc., USA.
Warnaco International Trading (Shanghai) Co. Ltd., China.
Warnaco Intimo S.A., Spain.
Warnaco Italy S.r.l., Italy.
Warnaco Logistics B.V., Netherlands.
Warnaco Netherlands B.V., Netherlands.
Warnaco of Canada Co., Canada.
Warnaco Poland Sp. z.o.o., Poland.
Warnaco Portugal-Vestuario e Acessorios Sociedade Unipessoal Lda., Portugal.
Warnaco Puerto Rico Inc.,
USA.
Warnaco Retail Inc.,
USA.
Warnaco Shanghai Co. Ltd., China.
Warnaco Singapore Pte. Ltd., Singapore.
Warnaco Swimwear Inc.,
USA.
Warnaco Swimwear Products Inc., USA.
Warnaco Taiwan Co. Ltd.,
Taiwan.
Warnaco U.S. Inc.,
USA.
Warnaco UK Ltd., Northern Ireland.
Warner’s (EIRE) Teoranta, Ireland.
Warner’s Aiglon S.A., France.
Warner’s de Mexico S.A. de C.V., Mexico.
WBR Industria e Comercio de Vestuario S.A., Brazil.
etc.
20280656
0569174
Managing Director: Mr. Stanley Parker Silverstein
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry
dated 08-10-2011)
|
Name |
|
No. of shares |
|
WF Overseas Fashion CV Dorchester House, 7 Church Street, Hamilton, Bermuda. |
|
10,000 ===== |
(As per registry
dated 08-10-2011)
|
Name (Nationality) |
Address |
|
Lawrence Russell RUTKOWSKI |
9 Stallion Trails, Greenwhich, CT 06831, USA. |
|
Stanley Parker SILVERSTEIN |
171 Chestnut Street, Englewood, New Jersey, NJ 07631, USA. |
|
HUI Hon Chiu, Jeffery |
Flat A, 13/F., Tower 3, Residence Bel-Air, 28 Bel‑Air Avenue, Island South, Hong Kong. |
|
Joy FONG |
Flat 1, 16/F., Block C, Imperial Court, 62G Conduit Road, Mid-Level, Hong Kong. |
(As per registry dated 08-10-2011)
|
Name |
Address |
Co.
No. |
|
Snap Services (H.K.) Ltd. |
Room 303, 3/F., St. George’s Building, 2 Ice House Street, Central, Hong Kong. |
0138615 |
The subject was incorporated on 8th October, 1996 as a private limited liability company under the Hong Kong Companies Ordinance.
It was originally registered under the name of Designer Holdings Overseas Ltd., name changed to the present style on 26th June, 2009.
Formerly the subject was located at 19/F., Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong, moved to 17/F. of the same building with effect from 6th July, 2009.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Garment Buying Office, Importer and Exporter.
Lines: Pyjamas, robes, camisoles, seamless vests, briefs, swimwear, brassieres, etc.
Employees: 180. (Hong Kong)
Commodities Imported: Bought in Hong Kong and imported from China and other Asian countries, etc.
Markets: US, Hong Kong, etc.
Group Net Revenues: US$2,513,388,000 (Year ended 31-12-2011)
Terms/Sales: COD, L/C or as per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Group Net Income: US$127,450,000 (Year ended 31-12-2011)
Profit or Loss: Business of the Group is profitable.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: JPMorgan Chase Bank N.A., Hong Kong Branch.
Standing: Very Good.
Formerly known as Designer Holdings Overseas Ltd., Warnaco Global Sourcing Ltd. is a wholly-owned subsidiary of WF Overseas Fashion CV which is a Bermuda-registered firm. The ultimate holding company of the subject is The Warnaco Group Inc. [Warnaco] of the United States. Warnaco has been listed on the New York Stock Exchange since 11th October, 1991.
The subject is engaged in designing, marketing, exporting intimate apparels, sportswear and swimwear.
Warnaco, a Delaware corporation organized in 1986 (collectively with its subsidiaries, the “Group”), designs, sources, markets, licenses and distributes a broad line of intimate apparel, sportswear and swimwear worldwide. The Group’s products are sold under several highly recognized brand names, including, but not limited to, “CALVIN KLEIN®”, “SPEEDO®”, “CHAPS®”, “WARNER’S®” and “OLGA®”.
The Group’s products are distributed domestically and internationally, primarily to wholesale customers through various distribution channels, including major department stores, independent retailers, chain stores, membership clubs, specialty and other stores, mass merchandisers and the internet.
The Group distributes its branded products through dedicated retail stores, and as of 31st December, 2011, the Group operated 1,759 Calvin Klein retail stores worldwide (consisting of 263 full price free-standing stores, 118 outlet free-standing stores, 1,376 shop-in-shop/concession stores and, in the United States, two on-line stores: Calvinkleinjeans.com, and CKU.com) and one on-line swimwear store SpeedoUSA.com. There were also 615 Calvin Klein retail stores operated by third parties under retail licenses or franchise and distributor agreements. For the fiscal year ended 31st December, 2011 (“Fiscal 2011”), approximately 40.3% of the Group’s net revenues were generated from domestic sales and approximately 59.7% were generated from international sales. In addition, approximately 71.1% of net revenues were generated from sales to customers in the wholesale channel and approximately 28.9% of net revenues were generated from customers in the direct-to-consumer channel.
The Warnaco Group carries
the following products:-
· intimate apparel (including bras, panties, loungewear, sleepwear, shapewear and daywear for women, and underwear and sleepwear for men);
· sportswear for men, women and juniors (including jeanswear, khakis, knit and woven shirts, tops and outerwear); and
· swimwear for men, women, juniors and children (including swim accessories and fitness and active apparel).
The Warnaco Group traces its origins back more than 130 years, when the “WARNER’S®” intimate apparel line, which is owned by the Group, first entered the market. Through a series of acquisitions, the Group has grown to become a worldwide leader in the apparel business.
The Warnaco Group owns and licenses a portfolio of highly recognized brand names. The preponderance of trademarks used by the Group are either owned or licensed in perpetuity. The Group’s core brands have been established in their respective markets for extended periods and have attained a high level of consumer awareness.
The following
table sets forth the Warnaco Group’s trademarks and licenses as of 2nd January,
2010:-
|
Trademarks Licensed in Perpetuity |
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Trademark |
Territory |
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“Speedo” |
United States, Canada, Mexico, Caribbean Islands |
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“Fastskin®” (secondary “Speedo” mark) |
United States, Canada, Mexico, Caribbean Islands |
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Trademarks Licensed
for a Term |
||
|
Trademark |
Territory |
Expires |
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“Calvin Klein” (for men’s/women’s/juniors’ jeans and certain jeans-related products) |
North, South and Central America |
31-12-2044 |
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“CK”/“Calvin Klein” Jeans (for retail stores selling men’s/women’s/juniors’ jeans and certain jeans-related products and ancillary products bearing the “Calvin Klein” marks) |
Canada, Mexico and Central and South America |
31-12-2044 |
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“CK”/“Calvin Klein” (for bridge apparel, bridge accessories and retail stores selling bridge apparel and accessories) |
All countries constituting European Union, Norway, Switzerland Monte Carlo, Vatican City, Liechtenstein, Iceland and parts of Eastern Europe, Russia, Middle East and Africa |
31-12-2046 |
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“CK”/“Calvin Klein” (for retail stores selling bridge accessories and jeans accessories) |
Central and South America (excluding Mexico) Europe and Asia |
31-12-2044 |
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“Calvin Klein” and “CK”/“Calvin Klein” (for men’s/women’s/children’s jeans and other related apparel as well as retail stores selling such items and ancillary products) |
Western Europe including Ireland, Great Britain, France, Monte Carlo, Germany, Spain, Portugal, Andorra, Italy, San Marino, Vatican City, Benelux, Denmark, Sweden, Norway, Finland, Austria, Switzerland, Lichtenstein, Greece, Cyprus, Turkey and Malta and parts of Eastern Europe, Russia, the Middle East and Africa, Japan, China, South Korea and rest of Asia (Hong Kong, Thailand, Australia, New Zealand, Philippines, Taiwan, Singapore, Malaysia, Indonesia, New Guinea, Vietnam, Cambodia, Laos, Myanmar, Macau and the Federated State of Micronesia) |
31-12-2046 |
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“CK”/“Calvin Klein” (for independent or common internet sites for the sale of jeanswear apparel and jeanswear accessories) |
North America, Europe and Asia |
31-12-2046 |
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“CK”/“Calvin Klein” (for independent or common internet sites for the sale of jeanswear apparel and jeanswear accessories) |
Central and South America (excluding Mexico) |
31-12-2044 |
|
“Calvin Klein” (for jeans accessories) |
All countries constituting European Union, Norway, Switzerland, Monte Carlo, Vatican City, Liechtenstein, Iceland and parts of Eastern Europe, Russia, Middle East, Africa and Asia |
31-12-2046 |
|
“Chaps” (for men’s sportswear, jeanswear, activewear, sport shirts and men’s swimwear) |
United States, Canada, Mexico, Puerto Rico and Caribbean Islands |
31-12-2018 |
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“Calvin Klein” and “CK”/“Calvin Klein” (for women’s and juniors’ swimwear) |
Worldwide with respect to Calvin Klein; Worldwide in approved forms with respect to “CK”/“Calvin Klein” |
31-12-2014 |
|
“Calvin Klein” (for men’s swimwear) |
Worldwide |
31-12-2014 |
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“Lifeguard®” (for wearing apparel excluding underwear and loungewear) |
Worldwide (United States, Canada, Mexico, Caribbean Islands and all other countries where trademark filings are or will be made) |
30-06-2030 |
The Warnaco Group relies on its portfolio of highly recognized brand names to appeal to a broad range of consumers. The Group’s goal is to develop products that address a full range of price points and meet the needs and shopping preferences of male and female customers in all age groups.
On 4th February, 2003, the Warnaco Group emerged from Chapter 11 bankruptcy protection and the Group’s New Common Stock began trading on the NASDAQ National Stock Market on 5th February, 2003 under the symbol “WRNC”.
For the year ended 31st December, 2011, the net revenues of the Group amounted to US$2,513.4 million, increased by 11.2% as compared with US$2,259.8 million in the previous year; net income was US$127.5 million, decreased by 8.0% as compared with US$138.6 million in the Fiscal 2010.
The Group employs about 5,200 employees.
On the whole, in view of the background and parentage of the subject, consider it good for normal business engagements.
REMARKS:
Brief introduction on the directors:-
Mr. Stanley Parker Silverstein, aged 59, currently serves as Warnaco’s Executive Vice President – International Strategy and Business Development. From March 2005 until January 2006, Mr. Silverstein served as Warnaco’s Executive Vice President ‑ Corporate Development. From March 2003 to March 2005, Mr. Silverstein served as Warnaco’s Senior Vice President – Corporate Development and served as Warnaco’s Chief Administrative Officer from December 2001 until January 2006. Mr. Silverstein served as Warnaco’s Vice President and General Counsel from December 1990 until February 2003 and as its Secretary from January 1987 until May 2003. In May 2004, Mr. Silverstein, without admitting or denying the findings, entered into a settlement with the Securities and Exchange Commission [SEC] pursuant to which the SEC found that Mr. Silverstein had willfully aided and abetted and caused certain violations by Warnaco of the federal securities laws and issued an administrative order requiring that Mr. Silverstein cease and desist from causing any violations and any future violations of such laws. The order, which did not impose any fines or monetary penalties on Mr. Silverstein, censured him pursuant to the SEC’s Rules of Practice and required that he disgorge certain incentive compensation for 1998, with interest. In addition, the order provided that until 11th May, 2006, Mr. Silverstein not sign documents to be filed with the SEC by or on behalf of Warnaco or participate in or be responsible for the preparation or review of such filings, except under limited circumstances.
Mr. Lawrence Russell Rutkowski, aged 53, currently serves as Warnaco’s Executive Vice President and Chief Financial Officer. From September 2003 until March 2005, Mr. Rutkowski served as Warnaco’s Senior Vice President and Chief Financial Officer. From December 1999 to June 2003, he served as Executive Vice President and Chief Financial Officer at Primedia Inc., a targeted media company. From November 1993 to December 1999, he served at National Broadcasting Company/General Electric as Senior Vice President and Chief Financial Officer Strategic Business Development and Controller of Corporate Finance. Previously, Mr. Rutkowski held a senior management position at Walt Disney Studios.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.26 |
|
UK Pound |
1 |
Rs.88.85 |
|
Euro |
1 |
Rs.71.13 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.