HANESBRANDS
Apparel Firm Picks Successor to CEO
Hanesbrands Inc. said Chief Executive Richard A. Noll will step
down from that role this fall, part of a leadership succession plan
that comes nearly a decade after the apparel maker became an
independent company.
Mr. Noll will be succeeded by Gerald W. Evans Jr., the company's
chief operating officer. Mr. Evans also will take a seat on the
company's board, expanding it to 11 members. Mr. Noll, who
currently is the company's chairman, will become executive
chairman. The moves are effective Oct. 1.
Mr. Evans has served as chief operating officer since 2013,
responsible for the company's day-to-day operations, including
direct oversight of supply-chain operations. He has been with the
company since 1983 in roles including marketing and sales.
Ronald L. Nelson, Hanesbrands' lead director, said the company
has increased annual sales to $6 billion from $4 billion during Mr.
Noll's nearly 10 years leading the company. "This is the perfect
time to transition our leadership," Mr. Noll, 58 years old, said in
a news release.
Hanesbrands, founded in 1901, was spun off from Sara Lee Corp.
in 2006 and includes brands such as Hanes, Champion and
Playtex.
The company's profit rose in its latest quarter, helped in part
by operational savings from a series of acquisitions. However,
sales have been more lackluster recently, echoing other retailers'
reports of soft consumer traffic in the U.S. Even with that help,
revenue edged up 0.9% to $1.22 billion in the latest period.
Shares in Hanesbrands were off 2.7% at $26.14 on the New York
Stock Exchange at 4 p.m. on Monday.
--Joshua Jamerson
GAWKER
Cerberus to Provide $22 Million Loan
Cerberus Capital Management L.P. has agreed to throw a $22
million lifeline to Gawker Media Group so the digital company can
stay alive in bankruptcy pending a sale of its business.
Gawker, which filed for bankruptcy protection on Friday, said
Cerberus Business Finance, the private-equity firm's lending arm,
agreed to provide it with $14 million on an interim basis in
addition to another $8 million following final bankruptcy court
approval.
Absent the cash, Gawker restructuring chief William Holden said
Monday, the company would be unable to pay its employees or vendors
and be forced to liquidate.
The bulk of the Cerberus loan, $12.3 million, will pay off
Gawker's lender Silicon Valley Bank, according to the filing in
U.S. Bankruptcy Court in New York.
Cerberus, named after the mythical three-headed dog that guards
the gates of Hades, was founded by former Drexel Burnham Lambert
trader Stephen Feinberg in 1992. The $30 billion firm, whose
leadership includes former U.S. Vice President Dan Quayle and
former U.S. Treasury Secretary John Snow, is a big player in the
trading of distressed-debt, where investors buy corporate loans
trading at a deep a discount with an eye toward profiting from
restructuring a company's balance sheet.
Gawker filed for bankruptcy and put itself up for sale on Friday
after a Florida judge upheld a $140 million jury judgment against
it in a legal battle with former professional wrestler Terry
Bollea, known as Hulk Hogan. Gawker is appealing the ruling.
The filing marked a stunning reversal for the 14-year-old Gawker
whose aggressive, irreverent style of reporting engendered media
fascination as well as ire among its enemies.
Last month, Silicon Valley billionaire and investor Peter Thiel
acknowledged financing Mr. Bollea's legal fight and other such
battles involving people who Mr. Thiel feels have been targeted
unfairly by Gawker. Mr. Thiel was outed as gay in 2007 by Gawker's
now-defunct Valleywag blog.
The company plans to sell its assets in bankruptcy court, and
has received an opening bid of $90 million from the digital-media
company and magazine publisher Ziff Davis LLC. That offer is
subject to higher bids at a bankruptcy auction.
Ziff Davis, Gawker's so-called stalking horse bidder, will
receive a $2.475 million breakup fee if bested at auction.
Bankruptcy courts routinely approve such fees to encourage
potential buyers to come forward and set a floor price for a
bankrupt company's assets.
Gawker on Monday also laid out a proposed timeline for the sale
of its business. Bids are due July 27 and an auction if necessary
will be held on July 29 at the offices of Ropes & Gray,
Gawker's bankruptcy lawyers, in New York. A hearing to approve the
sale is slated for Aug. 3.
Because of a $481 million gain from discontinued operations,
Denali reported an overall adjusted profit of $55 million. A year
earlier, the company posted a loss of $504 million.
--Patrick Fitzgerald
(END) Dow Jones Newswires
June 14, 2016 02:51 ET (06:51 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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