Hampshire Group Ltd (fka HAMPQ)

[Penny Stocks 2.0]

Brilliant "NEW MANAGEMENT" SAVED $20m CASH >>> Hampshire Group Announces Favorable Amendment to Lease of New York Office Space

Jun 18, 2015

OTC Disclosure & News Service

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Hampshire Group, Limited (OTC Markets:HAMP), ("Hampshire" or the "Company") today announced that it has reached an agreement to amend the lease for its corporate headquarters office space at 114 West 41st Street in New York City. Under the amended agreement, Hampshire will return four of the five floors it had previously leased but did not occupy, maintaining a lease for the single floor currently occupied by the Company. The revised agreement provides for a payment structure that will reduce Hampshire’s cash payments, as compared to the previous agreement, by approximately $20 million over the next eight years through the termination of the lease. The GAAP accounting of this transaction will differ from the cash expenditures, as the Company has taken numerous accounting charges in the past relating to the lease. The exact amounts of the GAAP accounting entries are yet to be determined and are subject to confirmation by the Company’s auditors.

Paul Buxbaum, Chief Executive Officer of Hampshire Group, commented, “The amendment of our New York office lease represents a major step in our progress towards achieving consistent profitability. The lease payments under the previous agreement had a significant negative impact on our financial performance over the past several years. Under the amended agreement we expect our annual SG&A cash expenses to decrease significantly as compared to previous levels, which will enhance the operating leverage of our business, particularly as we see anticipated increased sales volumes for our core brands.”

The amendment also provided for the discontinuance and settlement of litigation and appeals between the parties related to the New York office lease, eliminating the Company’s recurring legal expenses relating to this case.