After 18 months on the over-the-counter bulletin boards, R.G. Barry
Corp.'s stock joined the American Stock Exchange on Friday December
2, 2005. R.G. Barry, the Dearfoams® company, is one of the North
America's leading suppliers of at home comfort footwear. Its products
are sold through traditional, promotional and national chain department
stores, discount stores, warehouse clubs, supermarkets, and specialty
retailers.
R.G. Barry now trades under the symbol DFZ. The symbol is
meant to evoke Barry's best-known brand, Dearfoamsâ slippers. Thomas
M. Von Lehman, a principal of The Meridian Group and currently
the President and Chief Executive Officer of R.G. Barry, rang the
opening bell at the American Stock Exchange on Wednesday, January
18, 2006, to celebrate the company's recent listing.
Barry was delisted from the New York Stock Exchange in June 2004
after its stock fell below the exchange's standards for market
capitalization. For the fiscal years 1999 through 2003, the
Company’s combined loss was $48 million; and RGB saw its shareholder’s
equity fall from $75 million to a little over $25 million.
In January of 2004, Meridian was engaged to develop a strategic
plan that would return RGB to profitability. Thomas Von Lehman
joined the company in March 2004 at the request of RGB’s board
of directors to effectively implement the plan. For the first
nine months of 2005, the Company reported net earnings of approximately
$3.3 million, compared to a net loss of $24.2 million in the equivalent
period of 2004. The Company’s stock price has more than tripled
since early 2004. Barry’s success is largely attributable
to following the restructuring plan outlined by Meridian. The
plan called for the company to close its factories in Mexico; outsource
all of its production to Asia; and dramatically reduce overhead
expenses.
The
AMEX listing is a sign that the difficult two-year turnaround is
nearing completion. The focus for the Company now is to find
ways to profitably grow the business.
Barry will report its annual results at the end of February or early
March. The company is expected to announce its first profit
since 2001.
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