Flash! Speedo’s Parent Company Files for Bankruptcy

NEW YORK, June 11. WARNACO GROUP INC., the parent company of Speedo, filed for Chapter 11 bankruptcy protection today. Trading in shares of Warnaco was immediately suspended, according to a spokesman for the New York Stock Exchange.

The exchange said it also suspended the 6 percent convertible trust originated preferred securities of Designer Finance Trust, which traded under the symbol DSH. The trust is a wholly owned subsidiary of Warnaco, maker of Calvin Klein jeans, Speedo swimwear and other apparel.

Warnaco's stock, which last traded at 39 cents, has fallen well below the exchange's minimum requirement for average share price and market capitalization. As recently as a year ago, Warnaco was selling for $44 a share.

While Speedo, a division of Authentic Fitness, is thought to be in sound financial health, the bankruptcy of Warnaco may impact the swimming community and the more than 40 professionals swimmers
Speedo sponsors. Speedo is a corporate sponsor of USA Swimming and, for many years, has been one of a handful of companies consistently supportive of the sport.

Swiminfo was unable to reach Speedo officers, but we will post their comments when we reach them.

–Phil Whitten

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