SOURCE: Jaclyn

June 11, 2008 14:55 ET

Jaclyn, Inc. Announces Retention of Friedman, LLP and Also Announces Agreement Relating to West New York Office and Warehouse Facility

MAYWOOD, NJ--(Marketwire - June 11, 2008) - Jaclyn, Inc. (OTCQX: JCLY) announced today that effective June 9, 2008, the audit committee of its Board of Directors retained Friedman LLP as the Company's independent certified public accounting firm. Friedman LLP has for more than 80 years provided its clients with accounting, tax and consulting services, and has substantial experience in the textile, apparel (including childrenswear and ladieswear) and fashion-related industries. Friedman LLP succeeds Deloitte & Touche LLP, who was dismissed on that date as Jaclyn's independent registered public accounting firm.

Deloitte & Touche's reports on Jaclyn's financial statements as at and for the years ended June 30, 2006 and 2007 did not contain any adverse opinion or disclaimer of opinion and was not modified as to uncertainty, audit scope or accounting principles. There were no disagreements with Deloitte & Touche, whether or not resolved, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Deloitte & Touche's satisfaction, would have caused it to make reference to the subject matter of the disagreement in connection with its reports on Jaclyn's financial statements as at and for the fiscal years ended June 30, 2006 and 2007.

The Company also announced today that it has entered into an agreement relating to possible sale of the Company's former executive office and warehouse facility, as well as two adjacent lots, located in West New York, New Jersey.

The agreement provides VG Properties 15, LLC with a 60-day period within which to conduct its due diligence with regard to the West New York property and to determine whether to proceed toward the purchase of the property on the terms set forth in the agreement. At any time during that 60-day period, VG Properties may for any reason terminate the agreement. In the event that the Company receives an executed contract for the sale of the West New York property from certain third parties, VG Properties is required to determine, in its discretion, whether to agree to an accelerated due diligence period or, instead, to terminate the agreement.

If VG Properties decides to purchase the West New York property on the terms set forth in the agreement, the purchase price will be $7,100,000, of which $200,000 has been furnished to the Company as a refundable deposit, and $100,000 is required to be furnished at the time of the completion of the due diligence period. The remainder of the purchase price would be paid at a closing scheduled for September 2008. Any closing would be contingent on a number of other conditions and deliveries by the parties, including, among others, the satisfactory environmental condition of the property; the transfer to VG Properties of acceptable title to the property; and the delivery of documents, including lease amendments, from present tenants of the Company.

The Company noted that since VG Properties has the absolute right to terminate the agreement and not to purchase the West New York property and the completion of any sale of the property is subject to a number of other conditions and deliveries, there is no assurance that sale of the property to VG Properties will be concluded.

Forward Looking Statements

Note: This press release may contain forward-looking statements that are being made pursuant to the Private Securities Litigation Reform Act of 1995, which provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information so long as those statements are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the statement. Our forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from those described or implied in the forward-looking statements, including, but not limited to, general economic and business conditions; competition in the accessories and apparel markets, potential changes in customer spending; acceptance of our product offerings and designs; the variability of consumer spending resulting from changes in domestic economic activity; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates, as well as other significant accounting estimates made in the preparation of our financial statements; and the impact of hostilities in the Middle East and in other geographic areas, as well as other geopolitical concerns. Accordingly, actual results may differ materially from such forward-looking statements. Our forward-looking statements are based on our current expectations, assumptions, estimates and projections about the Company and involve significant risks and uncertainties. The Company assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

Contact Information

  • Company Contact:
    Anthony Christon
    Chief Financial Officer
    Jaclyn, Inc.
    (201) 909-6000