Barington Group Discloses 5.6% Stake in Warnaco Group (WRNC); Seeking to Improve Shareholder Value

The Barington Group said it has filed a Schedule 13D with the SEC disclosing that it now collectively holds approximately 5.6% of the common stock of The Warnaco Group, Inc. (Nasdaq: WRNC). In its Schedule 13D filing with the SEC, Barington stated that it believes Warnaco to be undervalued and that it wishes to engage in discussions with the Company's senior management concerning measures that it believes will improve shareholder value for the benefit of the Company's stockholders.

In its filing, Barington said such measures include, but are not limited to:

-the improvement in execution by the Company's senior management team and oversight provided by its Board of Directors in light of what Barington believes to be a string of recent operating disappointments temming from (a) the recently announced financial restatement caused by accounting issues at the Company's Chaps division and swimwear segment, and the resulting Securities and Exchange Commission informal inquiry, (b) disruptions and excess costs associated with poor implementation of SAP at the Company's swimwear segment, and (c) missed revenue growth and gross margin targets;

- a substantial reduction in equity grants, including stock options and restricted stock, which have averaged 5.0% annually or a staggering 17.6% cumulatively of the Company's shares outstanding over the past three and one-half fiscal years;

- the improvement in gross and EBITDA margins, which currently trail peer averages by approximately 800 and 600 basis points, respectively, through a reduction in SG&A and corporate expenses and better merchandising;

- the disposition of non-core brands and licenses, especially in underperforming divisions of the Company's intimate apparel and swimwear segments; and

- the exploration of alternatives, including, without limitation, the possible sale of the Company.