Hampton Industries, Inc. Announces Termination of Nautica License And Anticipated Financial Results for Year Ended December 30, 2000

Apr 03, 2001, 01:00 ET from Hampton Industries, Inc.

    KINSTON, N.C., April 3 /PRNewswire/ -- Hampton Industries, Inc.
 (Amex:   HAI) today announced that it has entered into a mutual agreement with
 Nautica Enterprises, Inc. (Nasdaq:   NAUT) to terminate Hampton's license from
 Nautica to market childrenswear under the Nautica label, effective April 2,
 2001.  Under the terms of the Agreement, Nautica will also purchase inventory
 and certain other assets related to Hampton's Nautica business.  Additionally,
 Nautica has agreed to forgive specific royalties and other expenses associated
 with the terminated license.  To facilitate a seamless transition, Hampton
 will continue to perform distribution and logistics functions for Nautica for
 a period of time.
     Hampton also reported that it filed a Notification of Late Filing on Form
 12b-25 with the Securities and Exchange Commission on April 2, 2001 in which
 Hampton stated that it anticipated that its pre-tax loss for the fiscal year
 ended December 30, 2000 would be a minimum of $29,000,000, as compared to a
 pre-tax loss in the prior year of $7,200,000.  Hampton also stated on such
 Form that it had not yet obtained all information required to complete its
 financial statements and that it was still gathering such information and
 preparing additional analysis, including its analysis of asset impairment
 issues.  Until such review has been completed, Hampton's actual results and
 financial condition cannot be determined with certainty and could differ
 materially from that stated above.  Until such review has been completed,
 Hampton said it would have no further comment on this matter.
     Hampton also reported today that it is in default under its senior credit
 facility and that it is operating under a Forbearance Agreement with its
 senior creditors which expires on April 13, 2001.  Hampton is currently
 negotiating with its senior creditors to extend such forbearance period beyond
 April 13, 2001.
     Hampton further announced today that its board of directors is currently
 considering various strategic alternatives, including a possible sale of all
 or some portion of its assets, and has recently hired Phoenix Management
 Services, Inc. to assist in this process.
 
     This news release contains forward-looking statements concerning the
 amount of the company's anticipated pre-tax loss, the effect of completion of
 the company's financial statements on its results of operations and financial
 condition, the possibility of an extension of the company's current
 forbearance agreement with its senior lenders and a possible sale of all or
 some portion of the company's assets.  These forward-looking statements are
 based on current expectations, forecasts and assumptions that involve risks
 and uncertainties that could cause outcomes and results to differ materially.
 These risks and uncertainties include uncertainty regarding the results of
 completion of the company's financial statements and its investigation of the
 amount of its anticipated pre-tax loss, the ability of the company to
 successfully negotiate a continuing forbearance agreement with its lenders and
 the ability of the company to successfully arrange for sales of certain
 material assets on terms acceptable to the company.  For a further list and
 description of risks and uncertainties related to the company's business, see
 the reports filed by the company with the Securities and Exchange Commission.
 The company disclaims any intention or obligation to update or revise any
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
 
 

SOURCE Hampton Industries, Inc.
    KINSTON, N.C., April 3 /PRNewswire/ -- Hampton Industries, Inc.
 (Amex:   HAI) today announced that it has entered into a mutual agreement with
 Nautica Enterprises, Inc. (Nasdaq:   NAUT) to terminate Hampton's license from
 Nautica to market childrenswear under the Nautica label, effective April 2,
 2001.  Under the terms of the Agreement, Nautica will also purchase inventory
 and certain other assets related to Hampton's Nautica business.  Additionally,
 Nautica has agreed to forgive specific royalties and other expenses associated
 with the terminated license.  To facilitate a seamless transition, Hampton
 will continue to perform distribution and logistics functions for Nautica for
 a period of time.
     Hampton also reported that it filed a Notification of Late Filing on Form
 12b-25 with the Securities and Exchange Commission on April 2, 2001 in which
 Hampton stated that it anticipated that its pre-tax loss for the fiscal year
 ended December 30, 2000 would be a minimum of $29,000,000, as compared to a
 pre-tax loss in the prior year of $7,200,000.  Hampton also stated on such
 Form that it had not yet obtained all information required to complete its
 financial statements and that it was still gathering such information and
 preparing additional analysis, including its analysis of asset impairment
 issues.  Until such review has been completed, Hampton's actual results and
 financial condition cannot be determined with certainty and could differ
 materially from that stated above.  Until such review has been completed,
 Hampton said it would have no further comment on this matter.
     Hampton also reported today that it is in default under its senior credit
 facility and that it is operating under a Forbearance Agreement with its
 senior creditors which expires on April 13, 2001.  Hampton is currently
 negotiating with its senior creditors to extend such forbearance period beyond
 April 13, 2001.
     Hampton further announced today that its board of directors is currently
 considering various strategic alternatives, including a possible sale of all
 or some portion of its assets, and has recently hired Phoenix Management
 Services, Inc. to assist in this process.
 
     This news release contains forward-looking statements concerning the
 amount of the company's anticipated pre-tax loss, the effect of completion of
 the company's financial statements on its results of operations and financial
 condition, the possibility of an extension of the company's current
 forbearance agreement with its senior lenders and a possible sale of all or
 some portion of the company's assets.  These forward-looking statements are
 based on current expectations, forecasts and assumptions that involve risks
 and uncertainties that could cause outcomes and results to differ materially.
 These risks and uncertainties include uncertainty regarding the results of
 completion of the company's financial statements and its investigation of the
 amount of its anticipated pre-tax loss, the ability of the company to
 successfully negotiate a continuing forbearance agreement with its lenders and
 the ability of the company to successfully arrange for sales of certain
 material assets on terms acceptable to the company.  For a further list and
 description of risks and uncertainties related to the company's business, see
 the reports filed by the company with the Securities and Exchange Commission.
 The company disclaims any intention or obligation to update or revise any
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
 
 SOURCE  Hampton Industries, Inc.