News Releases
Phoenix Footwear Group Announces Corporate Organizational Changes
Carlsbad, California, February 16, 2009 -- Phoenix Footwear Group, Inc. (NYSE Alternext US: PXG), as previously announced, has been conducting a review of its strategic alternatives with the assistance of BB&T Capital Markets, a division of Scott & Stringfellow, Inc. As a result of these efforts, the Company is presently engaged in discussions, meetings and negotiations with various parties – including its CEO, Cathy Taylor- which may result in the Company divesting or exiting certain operations. To date, no definitive agreements have been reached for such transactions, nor can any assurances be given that any such transactions will be approved or consummated.
Concurrent with these discussions, Cathy Taylor and Doug Ford have stepped down from their positions as CEO and Director, and CFO, respectively. The Company has also restructured its operations, eliminating 17 positions for an annual cost savings of approximately $2.5 million. These reductions are effective today and will result in a charge for severance during the first quarter of 2009.
In the wake of these changes Russell Hall has been named President and Chief Executive Officer of Phoenix Footwear Group while Dennis Nelson has been named the Company’s Chief Financial Officer. Mr. Hall has been with the Company since 2000 and most recently has been responsible for its Trotters, SoftWalk and Chambers divisions. Dennis Nelson has been the Company’s controller since June of 2008, prior to which he was Director of Finance for TaylorMade-adidas Golf Company.
The Company expects to be reporting year end results in late March; however, it does not intend to provide ongoing disclosure with respect to its strategic efforts until a definitive agreement is approved unless disclosure is otherwise appropriate.
About Phoenix Footwear Group, Inc.
Phoenix Footwear Group, Inc., headquartered in Carlsbad, California, designs, develops and markets a diversified selection of men's and women's dress and casual footwear, belts, and other accessories. Phoenix Footwear's brands and licenses include Tommy Bahama Footwear and Accessories®;, Trotters®;, SoftWalk®;, H.S. Trask®;, Chambers Belts®; and Wrangler. Emphasizing quality, fit and traditional and authentic designs, these brands are primarily sold through department stores, specialty retailers, mass merchants and catalogs. Phoenix Footwear Group, Inc. is traded on the NYSE Alternext US, which was formerly the American Stock Exchange, under the symbol PXG.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. The words “anticipates,” “will,” “expects,” “intends,” “plans” and words of similar meaning identify these forward-looking statements. Forward-looking statements also include statements concerning the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including statements regarding the proposed Chambers sale transaction, the expected closing and timing of that transaction and the expected net proceeds from that transaction and the monetization of Chambers’ working capital and the Tommy Bahama transaction and the repayment of the Company’s debt and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. The potential risks and uncertainties include, among others, the possibility that a Chambers transaction is not successfully concluded, or the unexpected liabilities related to the disposition arise or the transactions do not yield the anticipated proceeds. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation to release publicly any update or revision to any forward-looking statement contained herein if there are changes in the Company's expectations or if any events, conditions or circumstances on which any such forward-looking statement is based.
Contact:
Dennis Nelson
Chief Financial Officer
Phoenix Footwear Group, Inc.
(760) 602-9688
