Article: Movie Star to discontinue men's shirt unit Schwabe: seeks buyer or will liquidate.(Brief Article)

NEW YORK (FNS) -- Movie Star Inc. said it will exit the men's work and leisure shirt business because of inadequate return on capital and instead plans to focus on its intimate apparel division.

Movie Star said that the men's division, Schwabe, has sales of about $20 million, with about 50 percent to one customer. The business is "highly seasonal and requires high inventory levels and significant amounts of capital to support it."

The company said it will record an unspecified special charge in the fourth quarter ended June 30 reflecting the write-down of assets tied to the shirt business. In the year-ago fourth quarter, the company lost $1.9 million.

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