Faced with weak demand for activewear in thescreenprint channel and the possibility that its top customer may file forChap. 11 if an exchange offer with bondholders can’t be completed, GildanActivewear is taking action despite seeing continuing market share gains in keysegments. The Montreal company is scaling back production at Hondurasfacilities through shutdowns, delaying planned manufacturing expansion plansuntil FY10 and suspending distribution in the once expanding Eastern Europeanmarket.

Net income fell 83% to $7.1 million from $42.1 millionin the period ended Apr. 5. Total Q2 sales were down 17% to $244.8 million from$293.8 million on an 18% decline (1.2 million dozens) in ... Log in to view full article.