The ratings on North Carolina-based apparel manufacturer Renfro Corp. reflect Standard and Poor's view of the company's aggressive financial profile and vulnerable business risk profile. We view the company's financial risk profile as aggressive because of its high debt burden, in our view. Renfro's business risk profile is vulnerable, given its participation in the highly competitive apparel manufacturing industry, its narrow product focus in a commodity-like product, and its customer concentration. The company's operating performance remains positive despite a still-soft retail environment and cost inflationary pressures. For the trailing 12-months ended July 30, 2011, net sales and adjusted EBITDA increased about 8% and 4%, respectively. Higher sales were driven by good performance in the department store channel and incremental revenue
