August 25, 1994
London Fog Corp. boss Arnold P. Cohen was already vehemently disliked by his employees. Closing factories, laying off hundreds, overhauling sacred-cow business strategies and moving a headquarters 200 miles has that effect on people.But it was when he started angering the customers that he really got into trouble.The aggressive Mr. Cohen, who seemingly jammed a decade's worth of controversy into his year as London Fog's chairman and chief executive, unexpectedly left the job two days ago at least in part because he had alienated major department stores that ** buy the company's famous raincoats, retailers and fashion experts said yesterday.
January 20, 1995
London Fog Corp.'s decision to return its headquarters to Eldersburg is welcome news for Carroll County and Maryland.Not only will the company return a dozen or so top corporate jobs to the Free State, it may help counter the self-fulfilling notion that Maryland isn't an attractive place to conduct business.Founded nearly nine decades ago in Baltimore City, London Fog Corp. has always had a large presence in this state, with plants located in Baltimore, Eldersburg, Hancock, Boonsboro and Williamsport.
June 6, 1995
London Fog Corp. has restructured its debt, staving offbankruptcy at least for the time being, company officials and creditors said yesterday.But analysts and company executives warned that the deal -- in which banks forgave one-third of the company's $317 million in debt in return for control of the company -- may not sufficiently lighten the debt load that has caused much of the raincoat company's problems.The Eldersburg-based company will still have $211 million in debt on top of whatever it borrows from its new $120 million credit line, noted the company's president, Robert A. Gregory.
March 31, 1995
London Fog Corp. announced today that it would turn over an 80 percent stake in the company to its lenders in an agreement that saves it from the threat of bankruptcy.The financing agreement, reached with a syndicate of 23 banks headed by Chemical Bank, also provides for a new $120-million, two-year line of credit for the Eldersburg-based raincoat company. The money would be used for working capital and to support letters of credit used to purchase its garments."This agreement will provide the financing necessary for the company to fulfill all of our commitments to our retailers and suppliers and to assist us in overcoming the financial and operating problems we encountered last year," said Robert E. Gregory Jr., chairman and chief executive officer of London Fog.The agreement also shaves $106.
July 13, 1994
London Fog, for seven decades a proud Maryland name in outerwear known throughout the U.S., appears ready to wield the shears and cut its connections with the state where it began.In less than a year, the nation's largest raincoat manufacturer has eliminated nearly 400 Maryland jobs, closing shops in Baltimore and Boonsboro and moving the longtime Eldersburg headquarters to Connecticut. Threatened with imminent closure are remaining plants in Baltimore, Hancock and Williamsport, with some 700 employees.
August 6, 1994
When it rains it pours. After eliminating 300 Maryland jobs earlier this year, the London Fog raincoat company plans to lay off 700 more workers and close its three remaining Maryland plants.Despite last-ditch talks between company and national Clothing Workers union officials planned for next week, the prognosis is for a sad, swift departure for the firm that began in Baltimore over 70 years ago. The jobs, which pay about $300 a week, will be difficult to replace. The state's multi-million-dollar offer of incentives and grants to keep the plants open was not enough to bridge the wide gap between union and management.