Apparel manufacturer Tropical Sportswear International Corp on Monday said it plunged into the red during the first quarter as it was hit by charges which included a $5.7 million bill related to the departure of its former CEO.

The Florida-based company said in a statement it suffered a net loss of $5m for the quarter compared to a net profit of $3m in the year-ago period while net sales slipped to $99m from $110m.

It also said it has reached an agreement with Swiss Army Brands Inc to assume the operations of its Victorinox apparel division within the next 90 days.

The firm has also decided to exit its Duck Head retail outlet business as leases expire. It currently operates 16 outlet stores and sees no more than eight in operation by the end of this year.

President and CEO, Christopher Munday, commented: "As anticipated, the operational issues impacted our first quarter and will impact our second quarter as we have and will incur allowances associated with delivery issues.

"However, I am pleased to say that the problems are nearly behind us and should have no negative financial impact beyond our second quarter."

He added: "We have taken a fresh look at our business and are making some significant changes to eliminate all unnecessary costs.

"For example, the company currently anticipates terminating the leases on its corporate aircraft. The cost to terminate is approximately $5m-$6m resulting in a $2m reduction in annual operating expenses."