Alvarez & Marsal

After filing for bankruptcy in 2001, The Warnaco Group, Inc. is back in black, having
reclaimed its mantle as one of the world’s leading apparel companies. Serving in several key
interim management roles, including Chief Executive Officer and Chief Financial Officer
during the restructuring process, Alvarez & Marsal executed an award-winning turnaround,
notable for both its speed and scope. A crushing debt load, weak financial oversight, poor
operational management and lack of integration were replaced with a solid financial structure,
new accounting controls, disciplined operations, and a highly focused business strategy
centered around three divisions, each with new leadership. Relationships with key customers,
suppliers, licensors, and stakeholders were rebuilt and credibility with stakeholders was
restored. Upon Warnaco’s emergence, outstanding debt had been reduced from approximately
$2.2 billion to $276 million. Creditors received substantial returns. New common stock
began trading and, within four months, Warnaco closed a $210 million bond offering.
Recognizing the remarkable recovery, the Turnaround Management Association presented
Alvarez & Marsal with the prestigious “Turnaround of the Year Award” in 2003.