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Warnaco auditors doubt co can continue as going concern

NEW YORK,(Reuters) - Warnaco Group Inc.'s (NYSE:WAC - news) auditors Deloitte & Touche said the apparel
maker is not in compliance with certain debt covenants and the auditors have ``substantial doubt'' about its ability to continue as a
going concern, according to a regulatory filing.

The filing, made with the U.S. Securities and Exchange Commission, said Warnaco, the maker of Calvin Klein jeans and Speedo swimwear, was not in compliance
with some covenants of its long-term debt agreements.

The company is currently in discussions with its lenders for permanent amendments to the agreements, and if it is not successful, it would have to refinance its debt
with others, the filing said. Warnaco's ability to operate as a going concern is dependent upon the outcome of the negotiations or upon its ability to refinance its debt.

The filing said Warnaco is reviewing its operating structure in an attempt to cut costs. It has also retained financial and legal advisors who are exploring financial
alternatives available to Warnaco, including a possible debt restructuring and possible sales of assets.

Last week, the company said it had received a waiver of certain financial covenants from its lenders through May 16.