Algo ceases operations of its W. Green Jeans division and announces delay in filing its financial statements



    MONTREAL, March 18 /CNW Telbec/ - Algo Group Inc. (TSX : AO) announced
that it has recently sold certain assets of its W. Green Jeans division and as
a consequence ceased operations in this division. The sale was completed with
4453166 Canada Inc., a company controlled by Mr. Warren Green. The proceeds
were used by the Company to reduce the loan with its primary lender.
Mr. Green, previously the Company's Vice President, Sportswear, has terminated
his employment with the Company.
    At the outset of 2008, due to an administrative reorganization of Algo,
the services of the Company's Chief Financial Officer, Mr. Ken Labelle, were
terminated. Additionally, due to the administrative reorganization and Algo's
financial situation, Algo was not in a position early in the year to have its
auditors commence the audit fieldwork required in order to complete its annual
audit. As a result, the audit of Algo's consolidated financial statements will
not be completed by March 31, 2008 and, as such, Algo will not be in a
position to file its audited consolidated financial statements, related audit
report and MD&A by the March 31, 2008 filing deadline applicable to reporting
issuers in Canada.
    In accordance with applicable securities legislation, Algo will notify
the Canadian securities authorities of the late filing of its annual financial
information. Due to the late filing, Algo's securities may become subject to a
general issuer cease trade order issued by the Autorité des marchés financiers
(Québec). Algo will request that such cease trade order be limited to certain
members of its management and to insiders of Algo. However, in its discretion,
the Autorité des marchés financiers may determine that it would be appropriate
to issue a cease trade order affecting all of Algo's securities. Additionally,
if Algo fails to file its financial statements by May 31, 2008, any cease
trade order limited to management and to insiders of Algo can be expected to
be extended to all of Algo's securities. Algo currently expects that its audit
will be completed in time for Algo to file the required financial information
prior to May 31, 2008. Algo will announce any changes in this timeline as the
audit progresses.
    Algo's management, directors and insiders are currently subject to a
management cease trade order that was issued by the Autorité des marchés
financiers (Québec) on April 3, 2007. Such management cease trade order
remains in effect due to Algo's Chief Executive Officer and Chief Financial
Officer being unable to file the prescribed certificates under Multilateral
Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim
Filings in conjunction with (i) the filing of Algo's annual consolidated
financial statements and annual MD&A for the year ended December 31, 2006, and
(ii) the filing of Algo's interim financial statements and MD&A for the
interim periods ended respectively thereafter on March 31, June 30 and
September 30, 2007.

    ALGO GROUP PROFILE
    ------------------

    Algo Group is a Canadian importer of ladies' fashion apparel and
accessories that are marketed in North America. The Company also imports home
furnishing products that it markets to retailers through private labels and
the Levi's Home brand in Canada and the United States.

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.




For further information:

For further information: Algo Group Inc.: Sol Chankowsky, Executive
Vice-President, (514) 385-7701; Investor Relations: Rick Leckner, Maison
Brison, (514) 731-0000

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ALGO GROUP INC.

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