Signature Eyewear says it is negotiating with two potential new bank lenders for a refinancing package that would involve a new credit facility of about $13 million, putting an end to its financial problems. The US firm had previously obtained a postponement of its current loan payments until Oct. 31.
Its negotiations are being backed by another quarter of positive financial results. Signature turned around to a net profit of $153,799 in the 3rd quarter ended July 31 from a net loss of $1 million in the same period one year ago, despite a drop in sales of 32.2 percent to $11,821,000. The main factors for the decrease, besides the termination of a licensing contract for Coach eyewear, were lower sales of Laura Ashley and Eddie Bauer licensed products.
For the first 9 months of the current fiscal year, Signature reports a net profit of $486,654, as compared to a loss of $3.7 million in the year-ago period, on 18.3 percent lower sales of $34.2 million.