Warnaco Agrees to Sell Its A.B.S. Unit

Warnaco Group Inc., the maker of Calvin Klein jeans and Olga bras that emerged from Chapter 11 bankruptcy in February, agreed to sell its A.B.S. by Allen Schwartz unit for an undisclosed price.

The Los Angeles-based unit is being sold to designer Allen Schwartz and Armand Marciano, New York-based Warnaco said. Marciano is one of the brothers who founded Guess Inc.

Warnaco sought bankruptcy protection in June 2001, unable to pay debt from acquisitions and licensing agreements. The clothing maker changed management, renegotiated licensing deals and sold assets during its reorganization.

From Bloomberg News

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* Abercrombie & Fitch Co. reported a 5.9% increase in third-quarter net income to $50.5 million, or 51 cents a share, compared with $47.7 million, or 48 cents, a year earlier. Total sales rose 6.1% to $445 million, but sales at stores open more than a year fell 9%.