Mossimo Shares Are 2nd-Biggest Loser on NYSE, Dropping 12.7%

Mossimo Inc. was the second-biggest loser on the New York Stock Exchange on Tuesday, as shares of the Irvine apparel designer fell 12.7%, or 44 cents, to $3.

A company spokeswoman said she knew of no reason for the downturn, noting that there has been no news from the company since its third-quarter report, which showed a $4.8-million loss. Tuesday’s decline extended a 5-week-old trouncing of Mossimo, which was trading at $6 Nov. 10.

In its quarterly report to the Securities and Exchange Commission, the company disclosed that over the last nine months, it had exhausted nearly all of its $7 million in cash, had borrowed on a $20-million credit line and experienced significant increases in expenses.

At Tuesday’s $3 close, Mossimo is now trading at its book value, the per-share amount that the company would fetch if it were liquidated.

The downward spiral has been particularly painful, on paper, for 34-year-old founder Mossimo Giannulli. His 69% stake, worth more than $520 million in June 1996, had shriveled to $31.1 million on Tuesday.