Hampshire Group Completes the Sale of Its Rio Garment Business

16 Sep 2015, 08:00 AM EDT

NEW YORK–(BUSINESS WIRE)–Hampshire Group, Limited (OTC Markets: HAMP) today announced that it has
completed the previously announced sale of its Rio Garment S.A. (“Rio”)
operation. Rio is a Honduras-based apparel manufacturer, designing,
sourcing and manufacturing knit tops for men, women and children, which
are sold to retailers and distributors, primarily in the United States.

“We are pleased to have completed this transaction ahead of the schedule
that we set forth in our May 2015 amendment, and we wish the Rio team
well,” stated Paul Buxbaum, Chief Executive Officer of Hampshire Group.
“The sale of this business was an integral part of our plan to solidify
our balance sheet. With this accomplished we are fully focused on
reestablishing a growth trajectory for revenue and profitability through
the continued development of our core Brands business anchored by our
Dockers and James Campbell brands.”

About Hampshire Group

Hampshire Group, Limited (www.hamp.com),
along with its wholly-owned subsidiary, Hampshire Brands, Inc. is a
provider of fashion apparel across a broad range of product categories,
channels of distribution and price points. The Company specializes in
designing and marketing men’s sportswear to department stores, chain
stores and mass market retailers under licensed brands, our own
proprietary brands and the private labels of our customers.

Cautionary Disclosure Regarding Forward-Looking
Statements

This press release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that
reflect the Company’s current views with respect to future events. Such
statements are subject to certain risks and uncertainties which could
cause actual results to differ materially from those projected. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company
undertakes no obligation to publish revised forward-looking statements
to reflect events or circumstances after the date hereof or to reflect
the occurrences of unanticipated events. Readers are urged to review and
consider carefully the various disclosures made by the Company in its
Form 10-K and other Securities and Exchange Commission filings, which
advise interested parties of certain factors that affect the Company’s
business. Risks and uncertainties that could cause actual results to
differ materially from those anticipated in our forward looking
statements include, but are not limited to, the following: the failure
of Rio and the buyers to perform their post-closing obligations under
the purchase agreement; a prolonged period of depressed consumer
spending; use of foreign suppliers for raw materials and manufacture of
our products; lack of an established public trading market for our
common stock; decreases in business from or the loss of any one of our
key customers; financial instability experienced by our customers;
chargebacks and margin support payments; loss of or inability to renew
certain licenses; change in consumer preferences and fashion trends,
which could negatively affect acceptance of our products by retailers
and consumers; failure of our manufacturers to use acceptable ethical
business practices; failure to deliver quality products in a timely
manner; problems with our distribution system and our ability to deliver
products; labor disruptions at ports, our suppliers, manufacturers or
distribution facilities; failure, inadequacy, interruption or security
lapse of our information technology; failure to compete successfully in
a highly competitive and fragmented industry; challenges integrating any
business we have acquired or may acquire; potential impairment of
goodwill and acquired intangible assets; unanticipated expenses beyond
the amount reserved on our balance sheet or unanticipated cash payments
related to the ultimate resolution of income and other possible tax
liabilities; significant adverse changes to international trade
regulations; loss of certain key personnel which could negatively impact
our ability to manage our business; risks related to the global
economic, political and social conditions; fluctuation in the price of
raw materials adversely affecting our results of operations; energy and
fuel costs are subject to adverse fluctuations and volatility; potential
restrictions in our ability to borrow under our revolving credit
facility; lack of sufficient liquidity to fund our operations; failure
to realize expected benefits from our cost savings plan; and
cyber-security risks, which could negatively impact the security of our
sensitive information and technology.