Algo Group announces the appointment of a new President and CEO and new financing arrangements



    MONTREAL, Oct. 22 /CNW Telbec/ - Algo Group Inc. (TSX: AO) ("Algo" or the
"Company") today announced the following:

    President and CEO

    Mr. Marc Kakon recently resigned as President and CEO of Algo but remains
a director of the Company. Mr. Isaac Mimran was appointed as the Company's
President and CEO. Mr. Mimran, who was elected as a director of Algo at its
September shareholders' meeting is also the president of a privately-owned
payment processing company.
    Mr. Dan Elituv, Chairman of Algo's Board, thanked Mr. Kakon for his
"leadership and skill in guiding Algo through difficult times". He also
commented on Mr. Mimran's appointment stating that "Algo's new President is
charged with generating growth and profitability in the restructured
businesses, and we expect Isaac's energy and knowledge to make this happen".

    New Primary Lender

    CIT Financial Ltd. has agreed to provide Algo with a revolving credit
facility based upon eligible receivables and inventory. The loans are secured
by a first lien on all the assets of Algo and its subsidiaries and bear
interest at prime plus 1.5% on Canadian dollar loans and base rate plus 0.5%
on US dollar loans. The Company's receivables will also be factored by CIT
Group/Commercial Services Inc. The Company has drawn on this facility to fund
operations and to repay loans received from its shareholders and others, such
loans which funded Algo's businesses since the arrangement with its previous
primary lender, GMACCF, ended in June 2007.
    In order to terminate its revolving loan facility and non-revolving term
loan facility with GMACCF, the Company has made aggregate payments of
$4.8 million to GMACCF, and there was a debt forgiveness of approximately
$12 million.

    New License

    A subsidiary corporation owned by Algo and Mr. Mimran, has a 5 year
license agreement with Phat Fashions LLC for the import, marketing and
distribution of apparel, intimates, outerwear, shoes and accessories to be
sold in Canada under the Phat Farm and Baby Phat brands. This division is
expected to commence sales for Spring 2008 and to generate an annual sales
volume of $8 to $10 million. Mr. Mimran was instrumental in securing this
license and provided the necessary funding for the start-up of these
operations. The licensing and operational arrangements were approved by Algo's
board prior to Mr. Mimran's election to the board and his appointment as
President and CEO of Algo.

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

    Algo Group Inc is a Canadian importer of ladies' fashion apparel, as well
as men's, boy's and children's sportswear that is marketed throughout North
America. The Company also imports home furnishings that it markets to
retailers in North America, and holds licenses to sell various brands
including Levi's Home 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 Fashions 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.

    Forward-looking statement

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of Algo. 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,
evolution in customer demand for Algo'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.: Ken Labelle, C.A., Chief
Financial Officer, (514) 908-7804; INVESTOR RELATIONS: Rick Leckner, Maison
Brison, (514) 731-0000

Organization Profile

ALGO GROUP INC.

More on this organization

MaisonBrison Communications

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890