UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

            (X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                   For the fiscal year ended December 29, 2001

                                       OR

          ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                          Commission file number 1-6666

                               SALANT CORPORATION
             (Exact name of registrant as specified in its charter)

              1114 Avenue of the Americas, New York, New York 10036
                            Telephone: (212) 221-7500

  Incorporated in the State of Delaware Employer Identification No. 13-3402444

           Securities registered pursuant to Section 12(b) of the Act:
                      Common Stock, par value $1 per share,
                    Trading Over-The-Counter - Bulletin Board

        Securities registered pursuant to Section 12(g) of the Act: None

         Indicate by check mark whether the registrant (l) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes X  No __
    -

         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.

         Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes X  No __
    -

         As of March 20, 2002, there were outstanding 9,901,140 shares of the
Common Stock of the registrant. Based on the closing price of the Common Stock
on such date, the aggregate market value of the voting stock held by
non-affiliates of the registrant on such date was $9,870,532. For purposes of
this computation, shares held by affiliates and by directors and executive
officers of the registrant have been excluded. Such exclusion of shares held by
directors and executive officers is not intended, nor shall it be deemed, to be
an admission that such persons are affiliates of the registrant.

Documents incorporated by reference: The definitive Proxy Statement of Salant
Corporation to be filed relating to the 2002 Annual Meeting of Stockholders is
incorporated by reference in Part III hereof.


<PAGE>

                                TABLE OF CONTENTS


<TABLE>
                                                                                                                     Page

PART I
<S>       <C>                                                                                                          <C>
     Item 1.      Business                                                                                             3
     Item 2.      Properties                                                                                           5
     Item 3.      Legal Proceedings                                                                                    6
     Item 4.      Submission of Matters to a Vote of Security Holders                                                  6

PART II

     Item 5.      Market for Registrant's Common Equity and Related Stockholder Matters                                7
     Item 6.      Selected Consolidated Financial Data                                                                 8
     Item 7.      Management's Discussion and Analysis of Financial Condition and Results of Operations               10
     Item7A.      Quantitative and Qualitative Disclosures about Market Risk                                          20
     Item 8.      Financial Statements and Supplementary Data                                                         21
     Item 9.      Changes in and Disagreements with Accountants on
                  Accounting and Financial Disclosure                                                                 46

PART III

     Item 10.     Directors and Executive Officers of the Registrant                                                  46
     Item 11.     Executive Compensation                                                                              46
     Item 12.     Security Ownership of Certain Beneficial Owners and Management                                      46
     Item 13.     Certain Relationships and Related Transactions                                                      46

PART IV

     Item 14.     Exhibits, Financial Statement Schedules and Reports on Form 8-K                                     46

SIGNATURES

</TABLE>

<PAGE>

                                     PART I

ITEM 1.  BUSINESS

Introduction. Salant Corporation ("Salant" or the "Company"), which was
incorporated in Delaware in 1987, is the successor to a business founded in 1893
and incorporated in New York in 1919. The Company designs, produces, imports and
markets to retailers throughout the United States brand name and private label
menswear apparel products. The Company currently sells its products to
department stores, specialty stores, major discounters and national chains
throughout the United States. As an adjunct to its apparel operations the
Company operates 39 retail outlet stores in various parts of the United States.
The Company operates in the following business segments: (i) men's apparel
wholesale and (ii) retail outlet operations. These segments are more fully
described below. (As used herein, the "Company" includes Salant and its
subsidiaries.)

Bankruptcy Court Case. On December 29, 1998 (the "Filing Date"), Salant filed a
voluntary petition under chapter 11 of the Bankruptcy Code with the Bankruptcy
Court (the "1998 Case") in order to implement a restructuring of its 10-1/2 %
Senior Secured Notes due December 31, 1998 (the "Senior Notes"). Salant also
filed its plan of reorganization (the "Plan") with the Bankruptcy Court on the
Filing Date in order to implement its restructuring. On April 16, 1999, the
Bankruptcy Court issued an order confirming the Plan (the "Confirmation Order").
The Plan was effective on May 11, 1999 (the "Effective Date"). On November 30,
2001, the Bankruptcy Court approved the closing of the Company's 1998 Case.

Pursuant to the Plan (i) all of the outstanding principal amount of Senior
Notes, plus all accrued and unpaid interest thereon, was converted into 95% of
Salant's new common stock, subject to dilution, and (ii) all of Salant's
existing old common stock was converted into 5% of Salant's new common stock,
subject to dilution. Salant's general unsecured creditors (including trade
creditors) were unimpaired under the Plan and were entitled to be paid in full.

Men's Apparel - Wholesale. In fiscal 2001, the Company's ongoing wholesale
business was primarily comprised of Perry Ellis products. The Company markets
accessories, dress shirts, slacks and sportswear under the PERRY ELLIS and
PORTFOLIO BY PERRY ELLIS trademarks. The Company also markets products under the
TRICOTS ST. RAPHAEL trademark, which was purchased in January 2001 and a limited
amount of private label products.

Retail Outlet Operations. The Company's retail outlet stores business consists
of a chain of outlet stores (the "Stores division"), through which it sells
products manufactured by the Company and other Perry Ellis licensed
manufacturers. At the end of fiscal 2001, the Company operated 39 Perry Ellis
outlet stores.

Significant Customers. Approximately 18% of the Company's sales were made to
Dillards Corporation ("Dillards") in 2001, 2000 and 1999. In addition,
approximately 15% of the Company's sales, in 2001 were made to Federated
Department Stores, Inc. ("Federated"), along with approximately 12% of the
Company's sales being made to each of the May Company ("May") and Marmaxx
Corporation ("Marmaxx"). In 2000 and 1999, approximately 19% of the Company's
sales were made to Federated. Also in 2000 and 1999, approximately 17% and 16%,
respectively, of the Company's sales were made to May, and approximately 13% of
the Company's sales were made to Marmaxx in both 2000 and 1999. No other
customer accounted for more than 10% of sales during 2001, 2000 or 1999.
Trademarks. The markets in which the Company operates are highly competitive.
The Company competes primarily on the basis of brand recognition, quality,
fashion, price, customer service and merchandising expertise.

Approximately 89.4% of the Company's net sales for 2001 were attributable to
products sold under the licensed Perry Ellis trademarks, primarily PERRY ELLIS
and PORTFOLIO BY PERRY ELLIS (the "Perry Ellis Trademarks"); these products are
sold primarily through leading department and specialty stores. The balance is
attributable to products sold under retailers' private labels and other owned or
licensed trademarks.

In January 2002, the Company purchased the assets and trademarks of Axis
Clothing Corporation ("Axis"). Axis designs, produces and markets men's designer
sportswear for various channels of distribution, including specialty stores.
Subsequent to the purchase of Axis, the Company signed a license agreement with
Freed & Freed International to market, manufacture and distribute outerwear
under the Axis label.

Trademarks Licensed to the Company. The Perry Ellis Trademarks are licensed to
the Company under Licenses with Perry Ellis International, Inc. ("PEI"). The
license agreements contain renewal options, which, subject to compliance with
certain conditions contained therein, permit the Company to extend the terms of
such license agreements. Assuming the exercise by the Company of all available
renewal options, the license agreements covering men's apparel and accessories
will expire on December 31, 2015. On January 28, 1999, PEI and Supreme
International Corporation ("Supreme") announced that they had entered into a
definitive agreement under which Supreme would acquire for cash all of the stock
of PEI. On April 7, 1999, Supreme completed the acquisition of PEI and became
Salant's licensor under the Perry Ellis Licenses.

In 2001, the Company entered into a license agreement with Ocean Pacific Apparel
Corporation ("OP") to design, produce and distribute men's sportswear, including
big and tall lines, throughout the United States. In connection with the OP
license agreement, the Company signed a one-year agreement providing for JC
Penney to be the exclusive retailer of the OP products it produces.

In 2000, the Company entered into a license agreement with Hartz & Company, Inc.
("Hartz") to design, produce and distribute sportswear and furnishings for
Hartz's exclusive Tallia brand. This agreement was terminated, by its terms, at
the end of the first quarter 2002.

Design and Production. Products sold by the Company's various divisions are
produced to the designs and specifications (including fabric selections) of
designers employed by those divisions. In limited cases, the Company's designers
also receive input from the Company's licensors on general themes and color
palettes.

During 2001, approximately 1.9% of the units produced by the Company were
manufactured in the United States, with the balance manufactured in foreign
countries. The units produced by the Company were attributable to unaffiliated
contract manufacturers. In 2001, approximately 23.5% of the Company's foreign
production was manufactured in Guatemala, approximately 14.8% was manufactured
in the Dominican Republic and approximately 11.3% was manufactured in Hong Kong
with the balance produced in various other foreign countries.


The Company's foreign sourcing operations are subject to various risks of doing
business abroad, including currency fluctuations (although the predominant
currency used is the U.S. dollar), quotas and, in certain parts of the world,
political instability. Although the Company's operations have not been
materially adversely affected by any of such factors to date, any substantial
disruption of its relationships with its foreign suppliers could adversely
affect its operations. Some of the Company's imported merchandise is subject to
United States Customs duties. In addition, bilateral agreements between the
major exporting countries and the United States impose quotas, which limit the
amounts of certain categories of merchandise that may be imported into the
United States. Any material increase in duty levels, material decrease in quota
levels or material decrease in available quota allocations could adversely
affect the Company's operations.

Raw Materials. The raw materials used in the Company's production operations
consist principally of finished fabrics made from natural, synthetic and blended
fibers. These fabrics and other materials, such as leathers used in the
manufacture of various accessories, are purchased from a variety of sources both
within and outside the United States. The Company believes that adequate sources
of supply at acceptable price levels are available for all such materials.
Substantially all of the Company's foreign purchases are denominated in U.S.
currency. During fiscal 2001, two suppliers each accounted for more than 10% of
Salant's raw material purchases.

Competition. The apparel industry in the United States is highly competitive and
characterized by a relatively small number of multi-line manufacturers (such as
the Company) and a larger number of specialty manufacturers. The Company faces
substantial competition in its markets from companies in both categories. Many
of the Company's competitors have greater financial resources than the Company.
The Company seeks to maintain its competitive position in the markets for its
branded products on the basis of the strong brand recognition associated with
those products and, with respect to all of its products, on the basis of
styling, quality, fashion, price and customer service.

Environmental Regulations. Current environmental regulations have not had, and
in the opinion of the Company, assuming the continuation of present conditions,
are not expected to have a material effect on the business, capital
expenditures, earnings or competitive position of the Company.

Seasonality  of Business  and  Backlog of Orders.  This information  is included
under Item 7.  Management's  Discussion and Analysis of Financial Condition and
Results of Operations.

Employees. As of the end of 2001, the Company employed 617 persons, of whom 193
were engaged in distribution operations and the remainder were employed in
executive, marketing and sales, product design, general and administrative,
engineering and purchasing activities and in the operation of the Company's
retail outlet stores. The Company believes that its relations with its employees
are satisfactory. Employees at the Company's Winnsboro, South Carolina
distribution facility, are covered by a collective bargaining agreement.

ITEM 2.  PROPERTIES

The Company's principal executive offices are located at 1114 Avenue of the
Americas, New York, New York 10036. During 1999 and 2000, the Company sold or
closed all manufacturing and distribution facilities, except for the owned
distribution facility in South Carolina which has 360,000 square feet of space
devoted to distribution. The Company also has a short-term lease for an
additional 26,000 square feet of distribution space. The Company leases
approximately 107,000 square feet of combined office, design and showroom space.
As of the end of 2001, the Company's Stores division operated 39 retail outlet
stores, comprising approximately 100,000 square feet of selling space, all of
which are leased. Except as noted above, substantially all of the owned and
leased property of the Company is used in connection with its men's apparel
business or general corporate administrative functions. In connection with the
acquisition of Axis, the Company assumed or signed leases that would add
approximately 30,000 square feet of distribution, office, design and showroom
space.

The Company believes that its facilities and equipment are adequately
maintained, in good operating condition, and are adequate for the Company's
present needs.

ITEM 3.  LEGAL PROCEEDINGS

The Company is a defendant in several legal actions. In the opinion of the
Company's management, based upon the advice of the respective attorneys handling
such cases, such actions are not expected to have a material adverse effect on
the Company's consolidated financial position, results of operations or cash
flow.

The Company is a defendant in a declaratory judgment action, captioned Hartford
Fire Insurance Company v. Salant Corporation, Index No. 60233/98, in the Supreme
Court of the State of New York, County of New York (the "Hartford Action"). The
Company's insurers seek a declaratory judgment that the claims asserted against
the Company in a lawsuit captioned Maria Delores Rodriguez-Olvera, et al. v.
Salant Corp., et al., Case No. 97-07-14605-CV, in the 365th Judicial District
Court of Maverick County, Texas (the "Rodriguez-Olvera Action") are not covered
under the policies that the insurers had issued. The Company's insurers
nevertheless provided a defense to the Company in the Rodriguez-Olvera Action
and paid $30 million to settle the case without prejudice to their positions in
the Hartford Action. Currently, there are discussions being held with a view to
reaching an agreement for the settlement of the Hartford Action; if the
settlement proposal is achieved as contemplated, management believes there would
be no material impact on the Company's financial position or the results of
operations. Pending such a settlement of this action, Salant's insurers have not
withdrawn their reservation of rights, and the possibility remains that one or
more of such insurers will seek recourse against Salant. Management believes
that the liability for the Company should not exceed $0.25 million, its
deductible on the insurance policy with Hartford Fire Insurance Company.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

During the fourth quarter of 2001, no matter was submitted to a vote of security
holders of Salant by means of the solicitation of proxies or otherwise.


<PAGE>

                                     PART II

ITEM 5.   MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Salant's common stock is currently trading on the Over-the-Counter Bulletin
Board under the trading symbol SLNT.OB.

The high and low sale prices per share of common stock for each quarter of 2001
and 2000 are set forth below. The Company did not declare or pay any dividends
during such years. The Company's financing agreement requires the satisfaction
of certain net worth tests and other financial benchmarks prior to having the
right to pay any cash dividends. As of December 29, 2001, the Company was
prohibited from paying cash dividends by reason of, among other things, these
provisions.

     High and Low Sale Prices Per Share of Salant's Common Stock

        Quarter                       High                      Low

        2001
        Fourth                        $2.050                    $1.640
        Third                          2.590                     1.600
        Second                         4.000                     2.650
        First                          3.250                     2.625

        2000
        Fourth                        $3.000                    $1.875
        Third                          3.250                     2.500
        Second                         3.060                     1.620
        First                          3.120                     1.870

On March 20, 2002 there were 970 holders of record of shares of common stock,
and the closing market price was $2.55.

All of the outstanding voting securities of the Company's subsidiaries are owned
beneficially and of record by the Company (except for shares of certain foreign
subsidiaries of the Company owned of record by others to satisfy local laws).


<PAGE>

ITEM 6.  SELECTED CONSOLIDATED FINANCIAL DATA
(Amounts in thousands except share, per share and ratio data)

The following selected consolidated financial data as of December 30, 2000 and
December 29, 2001 and for each of the fiscal years in the three year period
ended December 29, 2001 have been derived from the Consolidated Financial
Statements of the Company, which have been audited by Deloitte & Touche LLP,
whose report thereon appears under Item 8, "Financial Statements and
Supplementary Data". The selected consolidated balance sheet data for fiscal
years 1997 through 1999 and statement of operations data for fiscal years 1997
and 1998 have been derived from the Company's audited consolidated financial
statements, which are not included herein. Such consolidated financial data
should be read in conjunction with Item 7, "Management's Discussion and Analysis
of Financial Condition and Results of Operations" and with the Consolidated
Financial Statements, including the related notes thereto, included elsewhere
herein.
<TABLE>
<CAPTION>

                                                       Dec. 29,      Dec. 30,     Jan. 01,     Jan. 02,     Jan. 03,
                                                           2001          2000         2000         1999         1998

                                                     (52 Weeks)    (52 Weeks)   (52 Weeks)   (52 Weeks)   (53 Weeks)

For The Year Ended:
  Continuing Operations:
<S>                                                    <C>           <C>          <C>         <C>          <C>
    Net sales                                          $207,773      $208,303     $248,730    $300,586     $ 347,667

    Restructuring costs (a)                                 100           629      (4,039)     (24,825)      (2,066)

    (Loss)/income from continuing operations before
     discontinued operations and extraordinary gain     (2,149)        12,711      (2,148)     (56,775)      (8,394)

    Discontinued Operations:
      Income/(loss) from operations, net of income taxes    273           569      (1,955)     (10,163)     (10,464)
      Loss on disposal, net of income taxes                   -             -            -      (5,724)      (1,330)

    Extraordinary gain (b)                                    -             -       24,703            -        2,100

    Net (loss)/income(a)                                (1,876)        13,280       20,600     (72,662)     (18,088)

    Basic and diluted (loss)/earnings per share (d)
    (Loss)/earnings per share from continuing
     operations before discontinued operations and
     extraordinary gain (a)                             $(0.22)         $1.28      $(0.21)      $(5.68)      $(0.84)

    Earnings/(loss) per share from discontinued
     operations                                             .03           .06       (0.20)       (1.59)       (1.18)
    Earnings per share from extraordinary gain                -             -         2.47            -         0.21
    Basic and diluted (loss)/earnings per share (a)      (0.19)          1.34         2.06       (7.27)       (1.81)


    Cash dividends per share                                  -             -            -            -            -

At Year End:
  Current assets                                        $91,897      $102,859      $93,331     $149,697     $147,631
  Total assets                                          119,587       130,548      121,803      176,129      228,583

  Current liabilities (c)                                18,272        27,533       32,069      201,766      180,898

  Deferred liabilities                                    6,232         5,642        4,133        5,273        5,382
  Working capital/(deficiency)                           74,625        75,326       61,262     (52,069)     (33,267)
  Current ratio                                           5.0:1         3.7:1        2.9:1        0.7:1        0.8:1

  Shareholders' equity / (deficiency)                   $95,083       $97,373      $85,601    $(30,910)      $42,303
  Book value per share                                    $9.60         $9.83        $8.65      $(2.04)        $2.79
  Number of shares outstanding                            9,901         9,901        9,901       15,171       15,171
  Pro forma Book value per share                              -             -            -      $(3.09)        $4.23
  Pro forma number of shares outstanding                      -             -            -       10,000       10,000

</TABLE>

      (a)Includes, for the year ended December 29, 2001 a reversal of $100
     ($0.01 per share; tax benefit not available) related primarily to better
     than anticipated recovery on certain assets. For the year ended December
     30, 2000 a reversal of $629 ($0.06 per share; tax benefit not available)
     related primarily to better than anticipated recovery on the sale of assets
     and settlement of previously recorded liabilities. For the year ended
     January 1, 2000, a provision for $4,039 ($0.40 per pro forma share; tax
     benefit not available) for restructuring costs related primarily to
     severance for employees terminated in connection with the Company's
     restructuring and exit from its non-Perry Ellis businesses. For the year
     ended January 2, 1999, a provision of $24,825 ($2.48 per pro forma share;
     tax benefit not available) for restructuring costs primarily related to the
     Company's intention to focus solely on its Perry Ellis men's apparel
     business and, as a result, exit its non-Perry Ellis menswear divisions. For
     the year ended January 3, 1998, a provision of $2,066 ($0.21 per pro forma
     share; tax benefit not available) for restructuring costs principally
     related to (i) $3,530 in connection with the decision in the fourth quarter
     to close all retail outlet stores other than Perry Ellis outlet stores and
     (ii) the reversal of previously recorded restructuring provisions of
     $1,464, primarily resulting from the settlement of liabilities for less
     than the carrying amount, resulting in the reversal of the excess portion
     of the provision. See Note 3. - Restructuring Costs to the Consolidated
     Financial Statements for additional discussion regarding years 1998-2001.

(b)  Includes, for the year ended January 1, 2000, a gain of $24,703 ($2.47 per
     pro forma share) related to the conversion of all the Senior Notes and the
     related unpaid interest into equity. For the year ended January 3, 1998, a
     gain of $2,100 ($0.21 per pro forma share) related to the reversal of
     excess liabilities previously provided for the anticipated settlement of
     claims arising from the Company's 1990 Chapter 11 proceeding.

(c)  At January 1, 2000 the Senior  Notes had been  converted  into  equity.  At
     January 2, 1999 and January 3, 1998,  long term debt of  $104,879  was
     classified  as  liabilities  subject to  compromise  and as a current
     liability, respectively.  See Note 1. - Financial Reorganization to the
     Consolidated Financial Statements.

(d)  Pro forma basic income/(loss) per share is based on the weighted average
     number of common shares as if the New Common Stock had been issued at the
     beginning of the earliest period presented for fiscal 1999, 1998 and 1997.

<PAGE>


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS.

Overview

The Company markets accessories, dress shirts, slacks and sportswear primarily
to department stores principally under the PERRY ELLIS and PORTFOLIO BY PERRY
ELLIS trademarks. In fiscal 2001 and 2000, the Company's ongoing business was
primarily comprised of Perry Ellis products. In connection with the 1998 Case,
Salant filed the Plan with the Bankruptcy Court in order to implement its
restructuring. The restructuring consisted of two key components: (i) the
conversion of all principal and accrued interest on the Senior Notes into 95% of
new common stock of Salant; and (ii) the sale or disposal of substantially all
of the Company's businesses other than the businesses conducted under the Perry
Ellis Trademarks.

In December 1998, the Company decided to discontinue the operations of the
Children's Group, which produced and marketed children's blanket sleepers,
pajamas, sleepwear and underwear primarily using a number of well-known licensed
characters and trademarks. The consolidated financial statements and the notes
thereto reflect the Children's Group as a discontinued operation.

See "Critical Accounting Policies and Estimates" and "Factors that May Affect
Future Results and Financial Condition", included as part of this "Management's
Discussion and Analysis of Financial Condition and Results of Operations" for
factors that may effect the results of operations or liquidity.

Results of Operations

Fiscal 2001 Compared with Fiscal 2000

   Net Sales

In fiscal 2001, net sales of $207.8 million were $0.5 million, or 0.3%, less
than net sales of $208.3 million in fiscal 2000. In the Company's wholesale
segment, net sales for fiscal 2001 were $181.6 million, a decrease of 0.7%,
compared to net sales of $182.9 million in fiscal 2000. Newly acquired and
licensed wholesale businesses offset the sales declines and accounted for $17.1
million of net sales in fiscal 2001. The Company's retail segment had net sales
of $26.1 million in fiscal 2001, an increase of 2.8%, compared to net sales of
$25.4 million for fiscal 2000. The decrease in the wholesale segment reflects
the overall softness in the retail apparel sector of the economy, particularly
at the department store level of distribution. This market softness caused an
increase in the level of returns and order cancellations from retail accounts,
additional markdowns to retail accounts to clear out unsold inventory, and lower
recoveries on the disposal of closeout inventory. The increase in net sales for
the retail segment was the result of the additional net sales contribution from
new retail outlet stores opened during 2001.

  Gross Profit

In fiscal 2001, gross profit of $45.4 million was $10.2 million less than gross
profit of $55.6 million in fiscal 2000. Gross profit margin decreased from 26.7%
in fiscal 2000 to 21.9% in fiscal 2001. The Company's wholesale segment's gross
profit percentage for fiscal 2001 was 18.7% of net sales, compared to 24.0% in
fiscal 2000. In the Company's retail segment, gross profit percentage was 43.8%
of net sales in fiscal 2001 compared to 46.2% in fiscal 2000. The margin
decrease in both of the Company's segments was caused by the various factors
discussed in Net Sales above.

  Selling, General and Administrative Expenses

Selling, general and administrative expenses (S,G&A) for fiscal 2001 were $47.8
million, or 23.0% of net sales, compared to $45.2 million, or 21.7% of net
sales, in fiscal 2000, an increase of $2.6 million, or 5.8 %. SG&A expenses for
newly acquired and licensed businesses increased from $0.8 million for fiscal
2000 to $5.5 million in fiscal 2001. This increase was partially offset by $1.0
million reversal of accruals established for claims relating to the Chapter 11
case and by lower employee costs and other reductions of overhead.

   Royalty Income

Royalty income decreased by $0.5 million, or 74.1%, to $0.2 million in fiscal
2001 from $0.7 million in fiscal 2000. The decrease in royalties was due to the
termination of a sublicense.

   Provision for Restructuring

In the fourth quarter of fiscal 2001, the Company recorded a net reversal of
$0.1 million due to favorable recovery of assets and settlement of previously
recorded liabilities, partially offset by increased severance costs related to
medical benefits. During 2001, the Company used approximately $0.4 million of
its restructuring reserves related to consulting and employee costs of $0.3
million and for lease payments, operating expenses and other restructuring costs
of $0.1 million. At the end of fiscal 2001, $0.6 million remained in the reserve
of which $0.5 million relates to severance and other employee costs, $0.1
million for lease buyouts and other restructuring items.

During fiscal 2000, the Company realized $0.6 million in favorable recoveries on
the disposal and sale of buildings and other assets and settlements of
previously recorded liabilities, partially offset by an increase in the
estimated severance related to the closure of the Company's Mexican
manufacturing operations. During 2000, the Company incurred approximately $0.9
million of restructuring costs that were provided for in 1999 and 1998. These
costs included severance and employee costs of $0.5 million, lease payments of
$0.1 million and the remaining balance for other restructuring costs, offset by
$0.3 million of gains from the sale of property, plant and equipment.

   Interest Income / Expense, Net

In fiscal 2001, net interest income was $0.3 million compared to net interest
income of $1.2 million in fiscal 2000. The decrease was due to lower interest
rates and the use of cash for operations.

    Loss/Income from Continuing Operations before Discontinued Operations and
    Extraordinary Gain

In fiscal 2001, the Company's loss from continuing operations before
discontinued operations and extraordinary gain was $2.1 million, or $0.22 per
share, compared to income of $12.7 million, or $1.28 per share, in fiscal 2000.

    Earnings before Interest, Taxes, Depreciation, Amortization, Reorganization
    Costs, Restructuring Charges, Discontinued Operations and Extraordinary Gain

Earnings before interest, taxes, depreciation, amortization, reorganization
costs, restructuring charges, discontinued operations and extraordinary gain was
$2.4 million (1.1% of net sales) in fiscal 2001, compared to $15.5 million (7.4%
of net sales) in fiscal 2000, a decrease of $13.1 million, or 84.5%. The Company
believes this information is helpful in understanding cash flow from continuing
operations, which is available for potential acquisitions and capital
expenditures. This measure is not included in generally accepted accounting
principles and is not a substitute for operating income, net income or cash
flows from operating activities.

   Income / Loss from Discontinued Operations

For the fourth quarter of fiscal 2001, the Company recorded income of $0.3
million related to better than anticipated settlement of liabilities related to
it's Children's business. At the end of fiscal 2001, $0.5 million remained in
the reserve of which approximately $0.4 million was for severance and the
remaining balance related to the settlement of liabilities and other closing
costs.

In fiscal 2000, the Company recorded income of $0.6 million related to the
discontinuance of its Children's group. The income related primarily to better
than anticipated recovery on the sale of assets (primarily the real estate
holdings) related to the Children's business.

    Net Loss/Income

Net loss for fiscal 2001 was $1.9 million, or $0.19 per share, compared to
income of $13.3 million, or $1.34 per share for fiscal year 2000.


Fiscal 2000 Compared with Fiscal 1999

   Net Sales

In fiscal 2000, net sales of $208.3 million were $40.1 million, or 16.1%, less
than net sales of $248.4 million in fiscal 1999. The decrease resulted from the
Company's exit from its non-Perry Ellis businesses during 1999, namely its
Manhattan, John Henry, Gant and private label dress shirt and accessories
businesses and its private label bottoms business. Net sales for these
businesses in fiscal 1999 were $44.5 million, compared to none in fiscal 2000.
Net sales for the Company's ongoing Perry Ellis and private label businesses for
fiscal 2000 were $208.3 million, an increase of $4.4 million, or 2.1%, over
fiscal 1999 net sales of $203.9 million. Of the increase, net sales of the
Company's Perry Ellis retail outlet stores (36 stores at the close of fiscal
2000 compared to 28 stores at the close of fiscal 1999) increased $8.1 million,
or 47.0%. Net sales of Perry Ellis men's apparel at wholesale in fiscal 2000
were unchanged at $178 million compared to fiscal 1999. Weakness at retail in
the men's accessories business in 2000 and closing the Company's Canadian
operations in fiscal year 1999 offset increases in other product lines.
Excluding the men's accessories business, the Company's net sales of men's
apparel at wholesale increased 5.4% in 2000.

  Gross Profit

In fiscal 2000, gross profit of $55.6 million was $0.4 million less than gross
profit of $56.0 million in fiscal 1999. Gross profit margin increased from 22.5%
in fiscal 1999 to 26.7% in fiscal 2000. Gross profit for the non-Perry Ellis
businesses exited by the Company in fiscal 1999 (as noted above) was $(1.5)
million, or (3.5)%, which caused the decline in the Company's overall margin for
1999. Gross profit for the Company's ongoing Perry Ellis and private label
businesses decreased to $55.5 million, or 26.7% of net sales, in fiscal 2000
compared to $57.1 million, or 28.1%, in fiscal 1999. The decline in margin was
primarily due to the weakness in the men's accessories business, noted above.
The Company has also experienced a decline in the margins for closeout sales of
prior season Perry Ellis products.

    Selling, General and Administrative Expenses

Selling, general and administrative expenses (S,G&A) for fiscal 2000 were $45.2
million, or 21.7% of net sales, compared to $54.9 million, or 22.1% of net
sales, in fiscal 1999, a decrease of $9.7 million, or 17.7%. As part of the
Company's restructuring noted above, headcount in S,G&A was reduced resulting in
a reduction in salaries and related benefits. In addition, the Company realized
savings due to the reduced overhead associated with its reorganization.

   Royalty Income

Royalty income decreased by $1.2 million, or 61.4%, to $0.7 million in fiscal
2000 from $1.9 million in fiscal 1999. The decrease in royalties was due to the
sale of the John Henry and Manhattan trademarks at the end of the first quarter
of fiscal 1999.

   Provision for Restructuring

During fiscal 2000, the Company realized $0.6 million in favorable recoveries on
the disposal and sale of buildings and other assets and settlements of
previously recorded liabilities, partially offset by an increase in the
estimated severance related to the closure of the Company's Mexican
manufacturing operations. During 2000, the Company incurred approximately $0.9
million of restructuring costs that were provided for in 1999 and 1998. These
costs included severance and employee costs of $0.5 million, lease payments of
$0.1 million and the remaining balance for other restructuring costs, offset by
$0.3 million of gains from the sale of property, plant and equipment.

During the first quarter of 1999, the Company recorded a provision for
restructuring of $4.0 million, primarily for severance pay for employees
terminated in 1999, as part of the Company's restructuring and exit from its
non-Perry Ellis businesses. During 1999, the Company incurred approximately $5.7
million (mostly cash related items) of restructuring costs that were either
provided for in 1999 or included in the restructuring reserve balance at January
2, 1999. These costs included severance and employee costs of $4.1 million,
lease payments of $0.8 million, royalty payments of $0.5 million and the
remaining balance for other restructuring costs, offset by $0.4 million of gains
from the sale of fixed assets.
   Interest Income / Expense, Net

In fiscal 2000, net interest income was $1.2 million compared to net interest
expense of $0.4 million in fiscal 1999. The change resulted primarily from the
sale of the Company's Manhattan and John Henry trademarks for $27 million, as
well as the Company's operating cash flow for fiscal 2000 of $8.4 million, both
of which have significantly reduced the Company's needs under its existing
credit facility.

    Income/Loss from Continuing Operations before Discontinued Operations and
    Extraordinary Gain

In fiscal 2000, the Company's income from continuing operations before
discontinued operations and extraordinary gain was $12.7 million, or $1.28 per
share, compared to a loss of $2.1 million, or $0.21 per pro forma share, in
fiscal 1999.

    Earnings before Interest, Taxes, Depreciation, Amortization, Reorganization
    Costs,Restructuring Charges, Discontinued Operations, and Extraordinary Gain

Earnings before interest, taxes, depreciation, amortization, reorganization
costs, restructuring charges, discontinued operations and extraordinary gain was
$15.5 million (7.4% of net sales) in fiscal 2000, compared to $8.6 million (3.5%
of net sales) in fiscal 1999, an increase of $6.9 million, or 80.2%. The Company
believes this information is helpful in understanding cash flow from continuing
operations, which is available for potential acquisitions and capital
expenditures. This measure is not included in generally accepted accounting
principles and is not a substitute for operating income, net income or cash
flows from operating activities.

 Income / Loss from Discontinued Operations

In fiscal 2000, the Company recorded income of $0.6 million related to the
discontinuance of its Children's Group. The income related primarily to better
than anticipated recovery on the sale of assets (primarily the real estate
holdings) related to its Children's business.

In fiscal 1999, the Company recorded a charge of $2.0 million related to the
discontinuance of its Children's Group. The charge of $2.0 million related to
additional losses incurred during the phase-out period and additional expenses
incurred in disposing of the assets related to the Children's business.

Extraordinary Gain

In fiscal 1999, the Company recorded an extraordinary gain of $24.7 million, or
$2.47 per pro forma share, on the conversion of its Senior Notes and related
unpaid interest into new common stock, as part of its restructuring. The holders
of the Senior Notes exchanged $104.9 million of Senior Notes and $14.8 million
of accrued and unpaid interest for 9.5 million shares of new common stock,
representing 95% of the issued and outstanding shares of the Company.

  Net Income

Net income for fiscal 2000 was $13.3 million, or $1.34 per share, compared to
income of $20.6 million, or $2.06 per pro forma share for fiscal year 1999.

Liquidity and Capital Resources

On May 11, 1999, the Company entered into a syndicated revolving credit
facility, (the "Credit Agreement"), as amended and restated on November 30,
2001, with The CIT Group/Commercial Services, Inc. ("CIT") pursuant to and in
accordance with the terms of a commitment letter dated December 7, 1998.

The Credit Agreement provides for a general working capital facility, in the
form of direct borrowings and letters of credit, up to $85 million subject to an
asset-based borrowing formula. The Credit Agreement consists of an $85 million
revolving credit facility, with at least a $45 million letter of credit
subfacility. As collateral for borrowings under the Credit Agreement, the
Company granted to CIT and a syndicate of lenders arranged by CIT (the
"Lenders") a first priority lien on and security interest in substantially all
of the assets of the Company. The Credit Agreement has an initial term of three
years. On March 19, 2002, the Company received a commitment letter from CIT to
extend the credit agreement for an additional three years with similar or more
favorable terms.

The Credit Agreement also provides, among other things, that (i) the Company
will be charged an interest rate on direct borrowings of .25% in excess of the
Prime Rate or at the Company's request, 2.25% in excess of LIBOR (as defined in
the Credit Agreement), and (ii) the Lenders may, in their sole discretion, make
loans to the Company in excess of the borrowing formula but within the $85
million limit of the revolving credit facility. The Company is required under
the agreement to maintain certain financial covenants relating to consolidated
tangible net worth, capital expenditures, minimum pre-tax income and minimum
interest coverage ratios. The Company was in compliance with all applicable
covenants at December 29, 2001.

At the end of fiscal 2001, there were no direct borrowings outstanding under the
Credit Agreement. Letters of credit outstanding were $19.6 million and the
Company had unused availability, based on outstanding letters of credit and
existing collateral, of $38.6 million. In addition to the unused availability,
the Company had approximately $19.8 million of cash available to fund its
operations. At the end of fiscal 2000, there were no direct borrowings
outstanding and letters of credit outstanding under the Credit Agreement were
$30.0 million, at which time the Company had unused availability of $21.7
million. In addition to the unused availability, the Company had approximately
$34.7 million of cash available to fund its operations. During fiscal 2001, the
maximum aggregate amount of direct borrowings and letters of credit outstanding
at any one time was $27.8 million, at which time the Company had unused
availability of $17.0 million. During fiscal 2000, the maximum aggregate amount
of direct borrowings and letters of credit outstanding at any one time was $36.3
million, at which time the Company had unused availability of $16.9 million.
<TABLE>
<CAPTION>

                                                            December 29,          December 30,
                                                                   2001                  2000
                                                         ------------------      ----------------

<S>                                                           <C>                       <C>
     Maximum Availability under Credit Agreement              $58.2                     $51.7
     Borrowings under Credit Agreement                            -                         -
     Outstanding Letters of Credit                             19.6                      30.0
                                                              ------                    ------
     Current Availability under Credit Agreement              $38.6                     $21.7
     Cash on Hand                                              19.8                      34.7
                                                              ------                    ------
     Available to fund operations                             $58.4                     $56.4
                                                              =====                     =====
</TABLE>


The Company's cash used in operating activities for fiscal 2001 was $7.8
million, which primarily reflects (i) loss from continuing operations of $2.1
million, (ii) an increase in accounts receivable of $12.0 million, (iii) an
increase in prepaid and other current assets of $2.4 million and (iv) a net
decrease in various liability accounts of $9.1 million. These items were offset
by a decrease in inventory of $12.5 million and non-cash charges, such as
depreciation and amortization, of $ 5.3 million.

Cash used by investing activities for fiscal 2001 was $7.1 million, which
primarily reflects $2.3 million of capital expenditures, $0.7 million for the
installation of store fixtures in department stores and $4.0 million for the
purchase of the assets of a business.

During fiscal 2002, the Company plans to make capital expenditures of
approximately $5.1 million and to spend an additional $1.0 million for the
installation of store fixtures in department stores. In addition, during the
first quarter of 2002, the Company, through its wholly owned subsidiary, Salant
Holding Corporation ("SHC"), acquired from Axis, certain of Axis' assets
pursuant to an Asset Purchase Agreement dated as of October 15, 2001 by and
between SHC, Axis and Richard Solomon an individual. The aggregate purchase
price for the Axis assets was approximately $12.4 million, plus estimated direct
acquisition costs of $0.6 million. Of the total purchase price $10.6 million was
paid at closing and $1.8 million was placed in escrow and is payable in equal
payments over the next 2 years. As a result of this acquisition, Salant has
diversified its operations for men's designer sportswear by expanding its
channels of distribution, including specialty stores.

Critical Accounting Policies and Estimates

The Company's significant accounting policies are more fully described in Note 2
to the Company's consolidated financial statements. Certain of the Company's
accounting policies require the application of significant judgement by
management in selecting the appropriate assumptions for calculating financial
estimates. By their nature, these judgements are subject to an inherent degree
of uncertainty. These judgements are based on historical experience, the
Company's observation of trends in the industry, information provided by
customers and information available from other outside sources, as appropriate.
The Company's significant accounting policies include:

Revenue Recognition - Sales are recognized upon shipment of products to
customers since title passes upon shipment and, in the case of sales by the
Company's retail outlet stores, when goods are sold to consumers. Allowances for
estimated uncollectible accounts, discounts, returns and allowances are provided
when sales are recorded based upon historical experience and current trends.
While such allowances have been within the Company's expectations and the
provisions established, it cannot guarantee to continue to experience the same
allowance rate as in the past.

Inventories - Inventory is valued at the lower of cost or market, cost being
determined on the first-in, first-out method. Reserves for slow moving and aged
merchandise is provided based on historical experience and current product
demand. The Company evaluates the adequacy of the reserves quarterly. While
markdowns have been within the Company's expectations and the provisions
established, it cannot guarantee to continue to experience the same level of
markdowns as in the past.

Valuation of Long-Lived Assets - The Company periodically reviews the carrying
value of the Company's long-lived assets for continued appropriateness. The
review is based upon the Company's projections of anticipated future cash flows.
While the Company believes that the estimates of future cash flows are
reasonable, different assumptions regarding such cash flows could materially
affect the Company's evaluations.

Deferred Taxes -- The Company accounts for income taxes under the liability
method. Deferred tax assets and liabilities are recognized based on differences
between financial statement and tax basis of assets and liabilities using
presently enacted tax rates. A valuation allowance is recorded to reduce a
deferred tax asset to that portion which is expected to more likely than not be
realized.

New Accounting Standards

In July 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 141, "Business Combinations."
SFAS No. 141 requires the purchase method of accounting for business
combinations initiated after June 30, 2001 and eliminates the
pooling-of-interests method. The Company does not believe that the adoption of
SFAS No. 141 will have a significant impact on its financial statements as the
Company has not historically accounted for business combinations using the
pooling of interest method.

In July 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible
Assets", which is effective January 1, 2002. SFAS No. 142 requires, among other
things, the discontinuance of goodwill amortization. In addition, the standard
includes provisions for the reclassification of certain existing recognized
intangibles, such as goodwill, reassessment of the useful lives of existing
recognized intangibles, reclassification of certain intangibles out of
previously reported goodwill and the identification of reporting units for
purposes of assessing potential future impairments of goodwill. SFAS No. 142
also requires the Company to complete a transitional goodwill impairment test
six months from the date of adoption. The Company expects that the adoption of
SFAS No. 142 will reduce annual amortization expense by approximately $0.1
million. Additionally the Company does not expect to incur goodwill and other
intangible asset impairment charges associated with the adoption of this
statement.

In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations". This Statement addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement costs. The Statement requires that the fair value of
a liability for an asset retirement obligation be recognized in the period in
which it is incurred if a reasonable estimate of fair value can be made. The
associated asset retirement costs are capitalized as part of the carrying amount
of the long-lived asset. SFAS No. 143 is effective for the first quarter in the
fiscal year ending January 3, 2004. The Company does not believe that the
adoption of this pronouncement will have a material impact on the consolidated
results of operations.

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets". The Statement addresses financial accounting and
reporting for the impairment of long-lived assets and for long-lived assets to
be disposed of. SFAS No. 144 supersedes SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of".
However, this Statement retains the fundamental provisions of SFAS No. 121 for
(a) recognition and measurement of the impairment of long-lived assets to be
held and used and (b) measurement of long-lived assets to be disposed of by
sale. SFAS No. 144 is effective for the first quarter in the fiscal year ending
December 28, 2002. The Company does not believe that the adoption of this
pronouncement will have a material impact on the consolidated results of
operations.

Seasonality

Although the Company typically introduces and withdraws various individual
products throughout the year, its principal products are organized into the
customary Spring, Transition, Fall and Holiday retail seasonal lines. The
Company's products are designed as much as one year in advance and manufactured
approximately one season in advance of the related retail selling season.

Backlog

The Company does not consider the amount of its backlog of orders to be
significant to an understanding of its business primarily due to increased
utilization of EDI technology, which provides for the electronic transmission of
orders from customers' computers to the Company's computers. As a result, orders
are placed closer to the required delivery date than had been the case prior to
EDI technology. At March 25, 2002, the Company's backlog of orders was
approximately $48.4 million, which was 9.4% more than the backlog of orders of
approximately $44.6 million that existed at March 20, 2001.

Factors that May Affect Future Results and Financial Condition

This report contains or incorporates by reference forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Where any such forward-looking statement includes a statement of the assumptions
or bases underlying such forward-looking statement, the Company cautions that
assumed facts or bases almost always vary from the actual results, and the
differences between assumed facts or bases and actual results can be material,
depending on the circumstances. Where, in any forward-looking statement, the
Company or its management expresses an expectation or belief as to future
results, there can be no assurance that the statement of the expectation or
belief will result or be achieved or accomplished. The words "believe",
"expect", "estimate", "project", "seek", "anticipate" and similar expressions
may identify forward-looking statements. The Company's future operating results
and financial condition are dependent upon the Company's ability to successfully
design, manufacture, import and market apparel. Taking into account the
foregoing, the following are identified as important factors that could cause
results to differ materially from those expressed in any forward-looking
statement made by, or on behalf of, the Company:

Competition. The apparel industry in the United States is highly competitive and
characterized by a relatively small number of multi-line manufacturers (such as
the Company) and a large number of specialty manufacturers. The Company faces
substantial competition in its markets from manufacturers in both categories.
Many of the Company's competitors have greater financial resources than the
Company. The Company also competes for private label programs with the internal
sourcing organizations of many of its own customers.

Strategic Initiatives. In the first quarter of 2002, the Company purchased the
assets and trademarks of Axis which designs, produces, and markets men's
sportswear. Management of the Company is continuing to consider various
strategic opportunities, including but not limited to, new menswear licenses
and/or acquisitions. Management is also exploring ways to increase productivity
and efficiency, and to reduce the cost structures of its respective businesses.
Through this process management expects to increase its distribution channels
and achieve effective economies of scale. No assurance may be given that any
transactions resulting from this process will be announced or completed.

Apparel Industry Cycles and other Economic Factors. The apparel industry
historically has been subject to substantial cyclical variation, with consumer
spending on apparel tending to decline during recessionary periods. A decline in
the general economy or uncertainties regarding future economic prospects may
affect consumer spending habits, which, in turn, could have a material adverse
effect on the Company's results of operations and financial condition.

Retail Environment. Various retailers, including some of the Company's
customers, have experienced declines in revenue and profits in recent periods
and some have been forced to file for bankruptcy protection. To the extent that
these financial difficulties continue, there can be no assurance that the
Company's financial condition and results of operations would not be adversely
affected.

Seasonality of Business and Fashion Risk. The Company's principal products are
organized into seasonal lines for resale at the retail level during the Spring,
Summer, Fall and Holiday seasons. Typically, the Company's products are designed
as much as one year in advance and manufactured approximately one season in
advance of the related retail-selling season. Accordingly, the success of the
Company's products is often dependent on the ability of the Company to
successfully anticipate the needs of the Company's retail customers and the
tastes of the ultimate consumer up to a year prior to the relevant selling
season.

Foreign Operations. The Company's foreign sourcing operations are subject to
various risks of doing business abroad, including currency fluctuations
(although the predominant currency used is the U.S. dollar), quotas and, in
certain parts of the world, political instability. Any substantial disruption of
its relationship with its foreign suppliers could adversely affect the Company's
operations. Some of the Company's imported merchandise is subject to United
States Customs duties. In addition, bilateral agreements between the major
exporting countries and the United States impose quotas, which limit the amount
of certain categories of merchandise that may be imported into the United
States. Any material increase in duty levels, material decrease in quota levels
or material decrease in available quota allocation could adversely affect the
Company's operations. The Company's operations in Asia are subject to certain
political and economic risks including, but not limited to, political
instability, changing tax and trade regulations and currency devaluations and
controls. Although the Company has experienced no material foreign currency
transaction losses, its operations in the region are subject to an increased
level of economic instability. The impact of these events on the Company's
business, and in particular its sources of supply, could have a materially
adverse effect on the Company's performance.

Dependence on Contract Manufacturing. As of December 29, 2001, the Company
produced all of its products through arrangements with independent contract
manufacturers. The use of such contractors and the resulting lack of direct
control could subject the Company to difficulty in obtaining timely delivery of
products of acceptable quality. In addition, as is customary in the industry,
the Company does not have any long-term contracts with its fabric suppliers or
product manufacturers. While the Company is not dependent on one particular
product manufacturer or raw material supplier, the loss of several such product
manufacturers and/or raw material suppliers in a given season could have a
material adverse effect on the Company's performance.

Because of the foregoing factors, as well as other factors affecting the
Company's operating results and financial condition, past financial performance
should not be considered to be a reliable indicator of future performance, and
investors are cautioned not to use historical trends to anticipate results or
trends in the future. In addition, the Company's participation in the highly
competitive apparel industry often results in significant volatility in the
Company's common stock price.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company does not engage in the trading of market risk sensitive instruments
in the normal course of business. Financing arrangements for the Company are
subject to variable interest rates including rates primarily based on the
Reference Rate (as defined in the Credit Agreement), with a LIBOR option. An
analysis of the Credit Agreement can be found in Note 9 to the Consolidated
Financial Statements, Financing Agreements, included in this report of Form
10-K. On December 29, 2001 and December 30, 2000 there were no direct borrowings
outstanding under the Credit Agreement.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Independent Auditors' Report

To the Board of Directors and Stockholders of Salant Corporation:

We have audited the accompanying consolidated balance sheets of Salant
Corporation and subsidiaries (the "Company") as of December 29, 2001 and
December 30, 2000, and the related consolidated statements of operations,
comprehensive (loss)/income, shareholders' equity/(deficiency) and cash flows
for each of the three years in the period ended December 29, 2001. Our audits
also included the financial statement schedule listed in the index at Item 14.
These financial statements and financial statement schedule are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and financial statement schedule based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all
material respects, the financial position of Salant Corporation and subsidiaries
at December 29, 2001 and December 30, 2000, and the results of their operations
and their cash flows for each of the three years in the period ended December
29, 2001 in conformity with accounting principles generally accepted in the
United States of America. Also, in our opinion, the financial statement
schedule, when considered in relation to the basic consolidated financial
statements taken as a whole, presents fairly in all material respects, the
information set forth therein.

As discussed in Note 1 to the financial statements, the Bankruptcy Court entered
an order confirming the Plan of Reorganization which became effective on May 11,
1999. The Bankruptcy Court entered an order on November 30, 2001 closing the
case.



/s/ Deloitte & Touche LLP


March 19, 2002
New York, New York

<PAGE>


                       Salant Corporation and Subsidiaries
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  (Amounts in thousands, except per share data)

<TABLE>
<CAPTION>

                                                                                   Year Ended
                                                       ------------------------------------------------------------

                                                           December 29,          December 30,            January 1,
                                                                   2001                  2000                  2000
                                                        ---------------      ----------------          ------------


<S>                                                         <C>                   <C>                    <C>
Net sales                                                   $   207,773           $   208,303            $  248,370
Cost of goods sold                                              162,348               152,708               192,391
                                                              ---------           -----------            ----------


Gross profit                                                     45,425                55,595                55,979

Selling, general and administrative expenses                    (47,804)              (45,188)              (54,909)
Royalty income                                                      194                   750                 1,945
Goodwill amortization (Note 2)                                     (627)                 (519)                 (519)
Other (expense)/income, net                                         (91)                  213                   579
Restructuring reversal/(costs) (Note 3)                             100                   629                (4,039)

Reorganization reversal/(costs) (Note 1)                            302                    --                  (500)
                                                              ---------            ----------             ---------

(Loss)/income from continuing operations before interest,
   income taxes, discontinued operations and extraordinary
   gain                                                          (2,501)               11,480                (1,464)
Interest (income)/expense, net (Note 9)                            (306)               (1,244)                  439
                                                              ---------            ----------             ---------


(Loss)/income from continuing operations before income
   taxes, discontinued operations and extraordinary gain         (2,195)               12,724                (1,903)

Income tax (benefit)/expense (Note 12)                              (46)                   13                   245
                                                              ---------            ----------             ---------


(Loss)/income from continuing operations
   before discontinued operations and extraordinary gain         (2,149)               12,711                (2,148)
Income/(loss) from discontinued operations (Note 17)                273                   569                (1,955)

Extraordinary gain (Note 4)                                         --                     --                24,703
                                                              --------             ----------            ----------


Net (loss)/income                                            $   (1,876)           $   13,280            $   20,600
                                                             ==========            ==========            ==========

Basic and diluted (loss)/income per share (Note 2):
  (Loss)/income per share from continuing
     operations before discontinued operations
     and extraordinary gain                                  $   (0.22)             $   1.28             $   (0.21)*
  Income/(loss) per share from discontinued operations            0.03                   .06                 (0.20)*
  Extraordinary gain                                                --                    --                  2.47*
                                                             ---------              ---------            ----------


Basic and diluted (loss)/income per share                    $   (0.19)             $   1.34             $    2.06*
                                                             =========              ========             ==========

Weighted average common stock outstanding                         9,901                 9,901                 9,998*
                                                             ==========             =========            ==========

</TABLE>


*The year ended January 1, 2000 per share information is pro-forma -- See Note
2.



                 See Notes to Consolidated Financial Statements


<PAGE>


                       Salant Corporation and Subsidiaries
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
                             (Amounts in thousands)

<TABLE>
<CAPTION>

                                                           December 29,          December 30,            January 1,
                                                                   2001                  2000                  2000
                                                     ------------------    ------------------         -------------



<S>                                                             <C>                   <C>                   <C>
Net (loss)/income                                               $(1,876)              $13,280               $20,600


Other comprehensive (loss)/income, net of tax:

 Foreign currency translation adjustments                             5                    25                    54

 Minimum pension liability adjustments                             (419)               (1,533)                1,055
                                                              ---------              ---------             ---------

Comprehensive (loss)/income                                     $(2,290)              $11,772               $21,709
                                                                =======               =======               =======


</TABLE>




                 See Notes to Consolidated Financial Statements


<PAGE>


                       Salant Corporation and Subsidiaries
                           CONSOLIDATED BALANCE SHEETS
                  (Amounts in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                            December 29,               December 30,
                                                                                    2001                       2000
                                                                       -----------------         -------------------

ASSETS
Current assets:
<S>                                                                          <C>                      <C>
  Cash and cash equivalents                                                  $    19,820              $      34,683
  Accounts receivable - net of allowance for doubtful accounts
   of $2,942 in 2001 and $2,625 in 2000                                           28,544                     16,588
  Inventories (Notes 5 and 9)                                                     34,735                     45,283

  Prepaid expenses and other current assets                                        8,798                      6,305
                                                                         ---------------            ---------------

    Total current assets                                                          91,897                    102,859

Property, plant and equipment, net (Notes 6 and 9)                                12,179                     13,185
License agreements - net of accumulated amortization
of  $5,039 in 2001 and $4,635 in 2000                                              6,122                      6,526
Other assets (Notes 7, 12 and 13)                                                  9,389                      7,978
                                                                            ------------               ------------


Total assets                                                                 $   119,587                $   130,548
                                                                             ===========                ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                                           $    10,576               $     14,798

  Reserve for business restructuring (Note 3)                                        584                      1,070
  Liabilities subject to compromise (Note 1)                                          --                      1,611
  Accrued salaries, wages and other liabilities (Note 8)                           6,619                      9,310
  Net liabilities of discontinued operations (Note 17)                               493                        744
                                                                          --------------            ---------------

    Total current liabilities                                                     18,272                     27,533

Deferred liabilities (Note 15)                                                     6,232                      5,642

Commitments and contingencies (Notes 9, 13, 14, 16, 20 and 21)

Shareholders' equity (Notes 1 and 14): Preferred stock, par value $2 per share:
    Authorized 5,000 shares; none issued                                              --                         --
  Common stock, par value $1 per share:
     Authorized 45,000 shares;
     Issued and outstanding - 10,000 in 2001 and 2000                             10,000                     10,000
  Additional paid-in capital                                                     206,040                    206,040
  Deficit                                                                       (115,893)                  (114,017)
  Accumulated other comprehensive loss (Note 18)                                  (4,866)                    (4,452)
  Less - treasury stock, at cost - 99 shares in 2001 and 2000                       (198)                      (198)
                                                                          --------------            ---------------


Total shareholders' equity                                                        95,083                     97,373
                                                                            ------------              -------------


Total liabilities and shareholders' equity                                    $  119,587                $   130,548
                                                                              ==========                ===========

</TABLE>


                 See Notes to Consolidated Financial Statements

<PAGE>


                       Salant Corporation and Subsidiaries
         CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY / (DEFICIENCY)
                             (Amounts in thousands)

<TABLE>
<CAPTION>
                                                                      Accum-
                                                                      ulated
                                                                       Other                          Total
                                                                      Compre-                         Share-
                                    Common Stock    Add'l             hensive      Treasury Stock    holders'
                                --------------------                            -------------------
                                Number            Paid-In              Income/      Number           Equity/
                              of Shares  Amount   Capital     Deficit  (Loss)   of Shares  Amount  (Deficiency)
                              -------------------------------------------------------------------------------------


<S>                <C>           <C>     <C>       <C>      <C>       <C>          <C>   <C>      <C>
Balance at January 2, 1999       15,405  $15,405   $107,249 $(147,897)$(4,053)     234   $(1,614) $(30,910)

Net Income                                                     20,600                                20,600
Other Comprehensive Income                                              1,109                         1,109
Reorganization:
  Cancel Old Common Stock       (15,405) (15,405)    13,791                        (234)    1,614        --
  Issue New Common Stock         10,000   10,000     85,000                                          95,000
Purchase of Treasury Stock                                                           99      (198)     (198)
                            --------------------------------------------------------------------------------

Balance at January 1, 2000       10,000  $10,000   $206,040 $(127,297)$(2,944)       99     $(198)  $85,601

Net Income                                                     13,280                                13,280
Other Comprehensive Loss                                               (1,508)                       (1,508)
                           ---------------------------------------------------------------- -----------------

Balance at December 30, 2000     10,000  $10,000   $206,040 $(114,017)$(4,452)       99     $(198)  $97,373

Net Loss                                                       (1,876)                               (1,876)
Other Comprehensive Loss                                                 (414)                         (414)
                           ----------------------------------------------------------------------------------

Balance at December 29, 2001     10,000  $10,000   $206,040 $(115,893)$(4,866)       99     $(198)  $95,083
                                 ======  =======   ======== ========= ======= =========== =======   =======

</TABLE>


                 See Notes to Consolidated Financial Statements

<PAGE>

                       Salant Corporation and Subsidiaries
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Amounts in thousands)
<TABLE>
<CAPTION>

                                                                                  Year Ended
                                                          ---------------------------------------------------------

                                                           December 29,          December 30,            January 1,
                                                                   2001                  2000                  2000
                                                          -------------         -------------            ----------

Cash Flows from Operating Activities
(Loss)/Income from continuing operations before discontinued
<S>                                                          <C>                     <C>                  <C>
  operations and extraordinary gain                          $   (2,149)             $ 12,711             $  (2,148)
Adjustments to reconcile (loss)/income from continuing operations
  before discontinued operations and extraordinary gain to net cash (used
  in)/provided by operating activities:
    Depreciation                                                  4,632                 4,101                 5,027
    Amortization of intangibles                                     627                   519                   519
Changes in operating assets and liabilities:
      Accounts receivable                                       (11,956)                 (632)               22,403
      Inventories                                                12,495                (3,614)               27,921
      Prepaid expenses and other current assets                  (2,370)                 (815)                 (224)
      Assets held for sale                                           --                   100                     -
      Other assets                                                  (27)                  (14)                 (521)
      Accounts payable                                           (4,222)                2,701                 9,266
      Accrued salaries, wages and other liabilities              (2,941)               (2,441)               (1,209)
      Liabilities subject to compromise                          (1,611)               (2,993)              (19,621)
      Reserve for business restructuring                           (486)               (1,238)               (1,243)
      Deferred liabilities                                          171                   (24)                  (85)
                                                            -----------           -----------             ---------

    Net cash (used in)/provided by continuing operating activities(7,837)               8,361                40,085
    Cash provided by discontinued operations                         22                     4                 6,214
                                                            -----------           ------------            ----------

Net cash (used in)/provided by operations                        (7,815)                8,365                46,299
                                                            -----------           -----------             ---------


Cash Flows from Investing Activities
Capital expenditures, net of disposals                           (2,292)               (1,959)               (4,579)
Store fixture expenditures                                         (722)               (1,864)               (2,486)
Proceeds from sale of assets                                          -                     -                28,300

Purchase of a business                                           (4,039)                    -                     -
                                                          -------------          ------------            ----------
Net cash (used in)/provided by investing activities              (7,053)               (3,823)               21,235
                                                          -------------           -----------             ---------


Cash Flows from Financing Activities
Net short-term debt repayments                                        -                     -               (38,496)
Purchase of treasury stock                                            -                     -                  (198)
Other, net                                                            5                    25                    54
                                                           ------------         -------------             ---------

Net cash provided by/(used in) financing activities                   5                    25               (38,640)
                                                           ------------         -------------             ---------


Net (decrease)/increase in cash and cash equivalents            (14,863)                4,567                28,894

Cash and cash equivalents - beginning of year                    34,683                30,116                 1,222
                                                            -----------            ----------            ----------

Cash and cash equivalents - end of year                      $   19,820             $  34,683             $  30,116
                                                             ==========             =========             =========

Supplemental disclosures of cash flow information: Cash paid during the year
for:
   Interest                                                $         23          $         93             $   1,054
                                                           ============          ============             =========

   Income taxes                                            $         64           $       179           $        90
                                                           ============           ===========           ===========

Supplemental investing and financing non-cash transactions:
    Common Stock issued for Senior Notes                              -                    --              $104,879
    Common Stock issued for pre-petition interest                     -                    --             $  14,703
    Common Stock issued for post-petition interest                    -                    --           $       121
Change in minimum pension liability                         $      (419)           $   (1,533)           $    1,055
Guaranteed future purchase price payments                   $       250                     -                     -



</TABLE>

                 See Notes to Consolidated Financial Statements


<PAGE>


                       SALANT CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
       (Amounts in Thousands of Dollars, Except Share and Per Share Data)

Note 1.  Financial Reorganization

On December 29, 1998 (the "Filing Date"), Salant Corporation filed a petition
under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code")
with the United States Bankruptcy Court for the Southern District of New York
(the "Bankruptcy Court") (the "1998 Case") in order to implement a restructuring
of its 10-1/2 % Senior Secured Notes due December 31, 1998 (the "Senior Notes").
Salant also filed its plan of reorganization (the "Plan") with the Bankruptcy
Court on the Filing Date in order to implement its restructuring. On April 16,
1999, the Bankruptcy Court issued an order (the "Confirmation Order") confirming
the Plan. The effective date of the Plan occurred on May 11, 1999 (the
"Effective Date"). On November 30, 2001, the Bankruptcy Court approved the
closing of the Company's 1998 Case.

As of the Filing Date, Salant had $143,807 (consisting of $14,703 in Senior Note
interest, $104,879 of Senior Notes and $24,225 of unsecured pre-bankruptcy
claims) of liabilities subject to compromise, in addition to $38,496 of loans
payable to The CIT Group/Commercial Services, Inc. ("CIT"). In addition Salant
accrued estimated fees of $500 in 1999 in connection with the administration of
the 1998 Case.

Pursuant to the Plan, on the Effective Date, all of Salant's then existing
common stock ("Old Common Stock"), $1.00 par value per share, was cancelled. In
accordance with the Plan, 10,000,000 shares of new common stock, $1.00 par value
per share (the "New Common Stock"), were issued by Salant as follows: (i)
9,500,000 shares or 95% of the issued and outstanding shares of New Common
Stock, subject to dilution, were distributed to the holders (the "Noteholders")
of Salant's Senior Notes, in full satisfaction of all of the outstanding
principal amount, plus all accrued and unpaid interest on the Senior Notes and
(ii) 500,000 shares or 5% of the issued and outstanding shares of New Common
Stock, subject to dilution, were distributed to the holders of Salant's Old
Common Stock, in full satisfaction of any and all interests of such holders in
Salant. The Company reserved 1,111,111 shares (10% of the outstanding shares) of
New Common Stock for the 1999 Stock Award and Incentive Plan.

The authorized capital stock of Salant as of the Effective Date consists of (i)
45,000,000 shares of New Common Stock, $1.00 par value per share and (ii)
5,000,000 shares of Preferred Stock, $2.00 par value per share. No Preferred
Stock has been issued.

Note 2.  Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The Consolidated Financial Statements include the accounts of Salant Corporation
("Salant") and subsidiaries. (As used herein, the "Company" includes Salant and
its subsidiaries but excludes its Children's Group.) In December 1998, the
Company decided to discontinue the operations of the Children's Group, which
produced and marketed children's blanket sleepers, pajamas, sleepwear and
underwear primarily using a number of well-known licensed characters and
trademarks. As further described in Note 17, the consolidated financial
statements and the notes thereto reflect the Children's Group as a discontinued
operation. Intercompany balances and transactions are eliminated in
consolidation.

During the first quarter of 2001, the Company purchased certain assets of a
business. The purchase price, including inventory, was approximately $4.3
million, with additional contingent payments due upon achieving future defined
benchmarks. The acquisition was accounted for using the purchase method. The pro
forma effect of the asset purchase on the results of operations is not
presented, as it is not material.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities (such as accounts
receivable, inventories, restructuring reserves and valuation allowances for
income taxes), disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

Fiscal Year

The Company's fiscal year ends on the Saturday closest to December 31. The 2001,
2000 and 1999 fiscal years were comprised of 52 weeks.

Reclassifications

Certain reclassifications were made to the 1999 and 2000 consolidated financial
statements to conform to the 2001 presentation.

Cash and Cash Equivalents

The Company treats cash on hand, deposits in banks and certificates of deposit
with original maturities of less than 3 months as cash and cash equivalents for
the purposes of the statements of cash flows.

Inventories

Inventories are stated at the lower of cost (principally determined on a
first-in, first-out basis) or market for wholesale apparel operations. Reserves
for slow moving and aged merchandise are provided based on historical experience
and current product demand. The Company evaluates the adequacy of the reserves
quarterly.

Effective December 31, 2000, due to a change in systems, the Company changed its
method of valuing its retail inventories from the retail method to the lower of
cost or market for outlet store operations. There was no impact resulting from
this change in the accompanying consolidated financial statements.

Property, Plant and Equipment

Property, plant and equipment are stated at cost and are depreciated or
amortized over their estimated useful lives, or for leasehold improvements, the
lease term, if shorter. Depreciation and amortization are computed principally
by the straight-line method for financial reporting purposes and by accelerated
methods for income tax purposes.

The annual depreciation rates used are as follows:

Buildings and improvements             2.5%      -    10.0%
Machinery, equipment and autos         6.7%      -    33.3%
Furniture and fixtures                10.0%      -    33.3%
Leasehold improvements                Shorter of the life of the asset or the
                                      lease term

Other Assets

Intangible assets are being amortized on a straight-line basis over their useful
lives of 25 years. Costs in excess of fair value of net assets acquired are
assessed for recoverability on a periodic basis. In evaluating the value and
future benefits of these intangible assets, their carrying value would be
reduced by the excess, if any, of the intangibles over management's best
estimate of undiscounted future operating income of the acquired businesses
before amortization of the related intangible assets over the remaining
amortization period. The Company expects that the adoption of Statement of
Financial Accounting Standards ("SFAS") No. 142 "Goodwill and Other Intangible
Assets", will reduce annual amortization expense by approximately $110.
Additionally the Company does not expect to incur goodwill and other intangible
asset impairment charges associated with the adoption of this statement.

Valuation of Long-Lived Assets

The Company periodically reviews the carrying value of the Company's long-lived
assets for continued appropriateness. The review is based upon the Company's
projections of anticipated future cash flows. While the Company believes that
the estimates of future cash flows are reasonable, different assumptions
regarding such cash flows could materially affect the Company's valuations.

Income Taxes

Deferred income taxes are provided to reflect the tax effect of temporary
differences between financial statement income and taxable income in accordance
with the provisions of SFAS No. 109, "Accounting for Income Taxes".

Fair Value of Financial Instruments

For financial instruments, including cash and cash equivalents, accounts
receivable and payable, and accrued expenses, the carrying amounts approximated
fair value because of their short maturity. Liabilities subject to compromise
were valued based upon the amount the Company planned to pay in accordance with
the Plan. In addition, deferred liabilities have carrying amounts approximating
fair value.

(Loss)/Income Per Share

Basic net (loss)/income per share was calculated by dividing net (loss)/income
by the weighted average number of shares outstanding during the period,
excluding any potential dilution. Diluted net (loss)/income per share was
calculated similarly but excludes potential dilution from the exercise of stock
options and awards. The difference between the basic and diluted weighted
average shares outstanding, if any, is due to the dilutive effect of stock
options issued under the Company's stock option plan.

Pro forma basic (loss)/income per share is based on the weighted average number
of common shares as if the New Common Stock had been issued at the beginning of
the earliest period presented. Common stock equivalents are not considered, as
the options for the New Common Stock are anti-dilutive for the periods
presented.

The following shows basic and diluted (loss)/income per share for 1999 using the
historical shares outstanding. Common stock equivalents are not considered for
the Old Common Stock, as the options were cancelled or anti-dilutive. Such
computation does not give retroactive effect to the issuance of the New Common
Stock.
                                                        1999
  Basic and diluted (loss)/income per share:
     From continuing operations                        $(0.18)
     From discontinued operations                       (0.17)
     From extraordinary gain                             2.09
                                                      -------

  Basic and diluted income per share                   $ 1.74
                                                       ======
  Weighted average common stock outstanding            11,830
                                                       ======

Revenue Recognition

Revenue is recognized upon shipment of products to customers since title passes
upon shipment and, in the case of sales by the Company's retail outlet stores,
when goods are sold to consumers. Allowances for estimated uncollectible
accounts, discounts, returns and allowances are provided when sales are recorded
based upon historical experience and current trends.

New Accounting Standards

In July 2001, the Financial Accounting Standards Board ("FASB") issued SFAS No.
141, "Business Combinations." SFAS No. 141 requires the purchase method of
accounting for business combinations initiated after June 30, 2001 and
eliminates the pooling-of-interests method. The Company does not believe that
the adoption of SFAS No. 141 will have a significant impact on its financial
statements as the Company has not historically accounted for business
combinations using the pooling of interest method.

In July 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible
Assets", which is effective January 1, 2002. SFAS No. 142 requires, among other
things, the discontinuance of goodwill amortization. In addition, the standard
includes provisions for the reclassification of certain existing recognized
intangibles, such as goodwill, reassessment of the useful lives of existing
recognized intangibles, reclassification of certain intangibles out of
previously reported goodwill and the identification of reporting units for
purposes of assessing potential future impairments of goodwill. SFAS No. 142
also requires the Company to complete a transitional goodwill impairment test
six months from the date of adoption. The Company expects that the adoption of
SFAS No. 142 will reduce annual amortization expense by approximately $110.
Additionally the Company does not expect to incur goodwill and other intangible
asset impairment charges associated with the adoption of this statement.

In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations". This Statement addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement costs. The Statement requires that the fair value of
a liability for an asset retirement obligation be recognized in the period in
which it is incurred if a reasonable estimate of fair value can be made. The
associated asset retirement costs are capitalized as part of the carrying amount
of the long-lived asset. SFAS No. 143 is effective for the first quarter in the
fiscal year ending January 3, 2004. The Company does not believe that the
adoption of this pronouncement will have a material impact on the consolidated
results of operations.

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets". The Statement addresses financial accounting and
reporting for the impairment of long-lived assets and for long-lived assets to
be disposed of. SFAS No. 144 supersedes SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of".
However, this Statement retains the fundamental provisions of SFAS No. 121 for
(a) recognition and measurement of the impairment of long-lived assets to be
held and used and (b) measurement of long-lived assets to be disposed of by
sale. SFAS No. 144 is effective for the first quarter in the fiscal year ending
December 28, 2002. The Company does not believe that the adoption of this
pronouncement will have a material impact on the consolidated results of
operations.

Note 3.  Restructuring Costs

In the fourth quarter of fiscal 2001, the Company recorded a net reversal of
$100 due to the favorable recovery of assets and settlement of previously
recorded liabilities, partially offset by increased severance costs related to
medical benefits. During 2001, the Company used approximately $386 of its
restructuring reserve related to consulting and employee costs of $290, lease
payments and operating expenses of $52 and the remaining balance for other
restructuring costs. At the end of fiscal 2001, $584 remained in the reserve of
which $475 relates to severance and other employee costs, $48 for lease buyouts
and $61 for other restructuring items. Activity in the accrued reserve for
business restructuring for fiscal 2001 is as follows:

                          Balance                   Accrual/       Balance
                         12/30/00        Uses      (Reversal)     12/29/01
  Lease payments and
  other property costs   $   200       $   (52)      $ (100)      $    48
  Severance                  550          (290)         215           475
  Other                      320           (44)        (215)           61
                          ------        -------      ------        ------
                          $1,070        $ (386)      $ (100)       $  584
                          ======        =======      =======       ======

In the fourth quarter of fiscal 2000, the Company recorded a net reversal of
$629 due to favorable recovery on the sale of its Andalusia, Alabama facility
and the recovery of other assets and settlement of previously recorded
liabilities, partially offset by increased severance costs related to the
closure of the Company's Mexican manufacturing operations. During 2000, the
Company used approximately $908 of its restructuring reserve related to
severance and employee costs of $498, lease payments of $89 and the remaining
balance for other restructuring costs. The Company also recognized gains from
the sale of fixed assets of $299. At the end of fiscal 2000, $1,070 remained in
the reserve of which $550 relates to severance and other employee costs, $200
for lease buyouts and $320 for other restructuring items. Activity in the
accrued reserve for business restructuring for fiscal 2000 is as follows:


                       Balance           Gains from  Accrual/    Balance
                       1/1/00     Uses     Sales    (Reversal)   12/30/00
Lease payments and
other property costs   $   600  $   (89) $   264      $ (575)    $   200
Severance                  850     (498)      --         198         550
Other                      858     (321)      35        (252)        320
                      --------  --------  ------     --------     --------
                        $2,308   $ (908)   $ 299      $ (629)     $1,070
                        ======   =======   =====      =======     ======


In fiscal 1999, the Company recorded a provision for restructuring of $4,039
related the Company's 1998 decision to focus primarily on its Perry Ellis men's
apparel business. The restructuring charge related primarily to employee costs
of $3,898 that could not be accrued in 1998, as the employees were not notified
until 1999. In addition, $161 of the charge was related to the write off of
store fixtures and the closing of the Company's operations in Canada. During
1999 the Company used approximately $5,671 of its restructuring reserve related
to severance and employee costs of $4,080, lease payments of $753 offset by $389
of gains from the sale of fixed assets, royalties of $452 and the remaining
balance for other restructuring costs. At the end of fiscal 1999, $2,308
remained in the reserve of which approximately $850 related to severance and
other employee related costs, $600 for lease buyouts and other asset related
disposal costs and $858 for other restructuring items. Activity in the accrued
reserve for business restructuring for fiscal 1999 is as follows:

                      Balance                                            Balance
                      1/2/99     Provisions       Uses         Other      1/1/00

Lease payments and
other property costs $   845    $      --      $  (753)      $  508     $   600
Royalties                592           --         (452)        (140)         --
Severance                840        3,878       (4,080)         212         850
Other                  1,274          161         (386)        (191)        858
                      ------       ------      --------      ------      ------
                      $3,551       $4,039      $(5,671)      $  389      $2,308
                      ======       ======      =======       ======      ======

Assets held for sale at January 1, 2000 related to the facility in Andalusia,
Alabama. Additional costs of $119 were anticipated due to holding the Andalusia
facility and additional employee related expenses of $212 were accrued and were
anticipated for 2000. These additional costs were offset by the favorable
results of settlements of royalties and other restructuring liabilities of $140
and $191, respectively. The Company subsequently sold this facility during
fiscal 2000.

Note 4.  Extraordinary Gain

In the second quarter of 1999, the Company recorded an extraordinary gain of
$24,703 related to the conversion of the Senior Notes and the related unpaid
interest into equity, as described in Note 1.

Pursuant to the Plan, the Noteholders received, in the aggregate, 95% of the
issued and outstanding shares of New Common Stock, subject to dilution, in full
satisfaction of all of the outstanding principal amount ($104,879), plus all
accrued and unpaid interest ($14,824) on the Senior Notes. As a result, pursuant
to the Plan, 9,500,000 shares of the New Common Stock were distributed to the
holders of the Senior Notes.

Note 5.  Inventories
                                        December 29,          December 30,
                                                2001                  2000

Finished goods                             $  21,378             $  27,078
Work-in-process                                9,310                11,009
Raw materials and supplies                     4,047                 7,196
                                           ---------             ---------
                                           $  34,735             $  45,283
                                           =========             =========

Markdown reserves were $1,887 at December 29, 2001 and $2,311 at December 30,
2000. Finished goods inventory includes in transit merchandise of $356 and
$2,172 at December 29, 2001 and December 30, 2000, respectively.

Note 6.  Property, Plant and Equipment

                                                     December 29,   December 30,
                                                            2001           2000

Land and buildings                                    $    7,392      $   6,901
Machinery, equipment, furniture
  and fixtures                                            19,540         18,350
Leasehold improvements                                     5,465          5,484
                                                       ---------      ---------
                                                          32,397         30,735

Less accumulated depreciation and amortization            20,218         17,550
                                                       ---------      ---------
                                                       $  12,179      $  13,185
                                                       =========      =========
Note 7.  Other Assets
                                                    December 29,    December 30,
                                                            2001           2000
Excess of cost over net assets acquired,
 net of accumulated amortization of
 $108 in 2001                                           $  2,067       $     --

Trademarks, net of accumulated amortization
 of $1,572 in 2001 and $1,457 in 2000                      3,028          3,143

Department store fixtures and other                        4,294          4,835
                                                        --------       --------
                                                        $  9,389       $  7,978
                                                        ========       ========

<PAGE>

Note 8.  Accrued Salaries, Wages and Other Liabilities

                                            December 29,          December 30,
                                                    2001                  2000

Accrued salaries and wages                      $  1,006              $  3,483
Accrued pension, retirement and benefits           1,139                 1,391
Accrued Workers Compensation                       1,181                 1,831
Other accrued liabilities                          3,293                 2,605
                                                --------              --------
                                                $  6,619              $  9,310
                                                ========              ========
Note 9.  Financing Agreements

On May 11, 1999, the Company entered into a syndicated revolving credit
facility, (the "Credit Agreement") as amended and restated November 30, 2001,
with CIT pursuant to and in accordance with the terms of a commitment letter
dated December 7, 1998.

The Credit Agreement provides for a general working capital facility, in the
form of direct borrowings and letters of credit, up to $85 million subject to an
asset-based borrowing formula. The Credit Agreement consists of an $85 million
revolving credit facility, with at least a $45 million letter of credit
subfacility. As collateral for borrowings under the Credit Agreement, the
Company granted to CIT and a syndicate of lenders arranged by CIT (the
"Lenders") a first priority lien on and security interest in substantially all
of the assets of the Company. The Credit Agreement has an initial term of three
years. On March 19, 2002, the Company received a commitment letter from CIT to
extend the credit agreement for an additional three years with similar or more
favorable terms.

The Credit Agreement also provides, among other things, that (i) the Company
will be charged an interest rate on direct borrowings of .25% in excess of the
Reference Rate or 2.25% in excess of LIBOR (as defined in the Credit Agreement),
and (ii) the Lenders may, in their sole discretion, make loans to the Company in
excess of the borrowing formula but within the $85 million limit of the
revolving credit facility. The Company is required under the agreement to
maintain certain financial covenants relating to consolidated tangible net
worth, capital expenditures, minimum pre-tax income and minimum interest
coverage ratios. The Company was in compliance with all applicable covenants at
December 29, 2001.

On December 29, 2001, there were no direct borrowings outstanding under the
Credit Agreement. Letters of credit outstanding were $19,616 and the Company had
unused availability, based on outstanding letters of credit and existing
collateral, of $38,560. In addition to the unused availability, the Company had
$19,820 of cash available to fund its operations. On January 1, 2000, there were
no direct borrowings and letters of credit outstanding under the Credit
Agreement were $30,093 and the Company had unused availability of $16,497. In
addition to the unused availability, the Company had $30,116 of cash available
to fund its operations. The weighted average interest rate on borrowings under
the Credit Agreement for the years ended December 29, 2001 and December 30, 2000
was 7.9% and 9.4%, respectively.

In addition to the financial  covenants  discussed  above,  the Credit Agreement
contains  a number  of other  covenants,  including  restrictions  on  incurring
indebtedness and liens, making investments in or purchasing the stock, or all or
a substantial part of the assets of another person,  selling property and paying
cash dividends. Note 10. Segment Information

The Company's principal business is the designing, producing, importing and
marketing of men's apparel. The Company currently sells its products throughout
the United States to retailers, including department and specialty stores. As an
adjunct to its apparel operations the Company operates 39 retail outlet stores
in various parts of the United States. The Company operates in the following
business segments: (i) men's wholesale and (ii) retail outlet operations.
Information concerning the Company's business segments in 2001, 2000 and 1999 is
as follows:


                                         2001             2000           1999
 Net Sales
 Wholesale                            $ 181,637         $ 182,891     $ 231,086
 Retail                                  26,136            25,412        17,284
                                      ----------        ---------       -------
                                      $ 207,773         $ 208,303     $ 248,370
                                      ==========        =========       =======

 Gross Profit
 Wholesale                            $  33,966         $  43,850      $ 47,982
 Retail                                  11,459            11,745         7,997
                                      ---------         ---------       -------
                                      $  45,425         $  55,595      $ 55,979
                                      =========         =========      ========

 (Loss)/Income form Continuing Operations
 before Interest, Taxes, Discontinued Operations
 and Extraordinary Gain
 Wholesale                            $  (1,748)        $   9,982      $ (2,511)
 Retail                                    (753)            1,498         1,047
                                      ---------         ---------      --------
                                      $  (2,501)        $  11,480      $ (1,464)
                                      =========         =========      =========

 Capital Expenditures
 Wholesale                            $   2,251         $   5,003
 Retail                                     760             1,144
                                       ---------        ---------
                                      $   3,011         $   6,147
                                      =========         =========

 Total Assets
 Wholesale                            $ 110,402         $ 121,709
 Retail                                   9,185             8,839
                                       --------        ----------
                                      $ 119,587         $ 130,548
                                      =========        ==========

Note 11. Significant Customers

Approximately 18% of the Company's sales were made to Dillards Corporation
("Dillards") in 2001, 2000 and 1999. In addition, in 2001, approximately 15% of
the Company's sales were made to Federated Department Stores, Inc.
("Federated"), along with approximately 12% of the Company's sales being made to
each of the May Company ("May") and Marmaxx Corporation ("Marmaxx"). In 2000 and
1999 approximately 19% of the Company's sales were made to Federated. Also in
2000 and 1999, approximately 17% and 16%, respectively, of the Company's sales
were made to May, and approximately 13% of the Company's sales were made to
Marmaxx in each of 2000 and 1999. No other customer accounted for more than 10%
of sales during 2001, 2000 or 1999.

<PAGE>

Note 12.  Income Taxes

The provision for income taxes consists of the following:
<TABLE>
<CAPTION>

                                                  December 29,           December 30,           January 1,
2001                                                      2000                   2000
Current:
<S>                                                    <C>                    <C>                  <C>
 Federal                                               $    --                $    --              $   (20)
 Foreign                                                   (46)                    13                  265
                                                         -----                 ------              -------
                                                         $ (46)                 $  13               $  245
                                                         =====                  =====               ======
</TABLE>

The following is a reconciliation of the income tax/(benefit) at the statutory
Federal and State income tax rates to the actual income tax provision:
<TABLE>
<CAPTION>

                                                          2001                   2000                 1999
                                                       ---------              ----------            ------


<S>                      <C>                           <C>                   <C>                 <C>
Income tax/(benefit), at 34%                           $  (638)              $  4,520            $    (647)
State tax/(benefit)                                        (94)                   665                  (96)
Loss producing no current tax benefit                                              --                  743
Reversal of valuation allowance                            920                 (6,060)                  --
Tax refunds from prior years                                --                     --                  (20)
Other                                                     (189)                   875                   --
Foreign taxes                                              (46)                    13                  265
                                                      --------             ----------           ----------

Income tax provision                                   $   (46)             $      13            $     245
                                                       =======              =========            =========
</TABLE>

The following are the tax effects of significant items comprising the
Company's net deferred tax asset:
<TABLE>
<CAPTION>

                                                                        December 29,          December 30,
                                                                                2001                  2000

Deferred tax assets:
<S>                                                                      <C>                      <C>
 Reserves not currently deductible                                       $     8,260              $ 10,365
 Operating loss carryforwards                                                 50,605                45,872
 Tax credit carryforwards                                                         18                   138
 Expenses capitalized into inventory                                           1,115                 2,299
 Differences between book and tax basis of property                              837                 1,241
                                                                        ------------            ----------
                                                                           $  60,835              $ 59,915
                                                                           =========              ========

Deferred tax asset                                                         $  60,835              $ 59,915
Valuation allowance                                                          (60,835)              (59,915)
                                                                           ---------             ---------
Net deferred tax asset                                                 $          --          $         --
                                                                       =============          ============
</TABLE>


At December 29, 2001, the Company had net operating loss carryforwards ("NOLs")
for income tax purposes of approximately $129,757, expiring from 2002 to the
year 2021, which can be used to offset future taxable income. To the extent any
of these NOLs relate to the acquisition of Manhattan Industries in April 1988,
their utilization will reduce the remaining balance of approximately $9,200 of
intangible assets recorded in connection with the acquisition. The following
table reflects the expiration of the NOLs in 5-year increments:

                                Expiration of NOLs

                     Year                              Amount
                 ---------------                    ---------
                 2002-2006                          $  70,375
                 2007-2011                             18,705
                 2012-2016                             13,197
                 2017-2021                             27,480

                                                     $129,757

The Manhattan Industries acquisition and the Company's 1990 bankruptcy and
subsequent consummation caused an "ownership change" for federal income tax
purposes. As a result, the use of any NOLs existing at the date of the ownership
change to offset future taxable income is limited by section 382 of the Internal
Revenue Code of 1986, as amended ("Section 382"). The $129,757 of NOLs reflected
above is the maximum the Company may use to offset future taxable income. Of the
$129,757 of NOLs, $84,207 is subject to annual usage limitations under Section
382 of approximately $7,200.

In addition, at December 29, 2001, the Company had available tax credit
carryforwards of approximately $18, which expire between 2002 and 2012.
Utilization of these credits may be limited in the same manner as the NOLs, as
described above.

Note 13.  Employee Benefit Plans

Pension and Retirement Plans

The Company has several defined benefit plans for virtually all full-time
salaried employees and certain non-union hourly employees. The Company's funding
policy for its plans is to fund the minimum annual contribution required by
applicable regulations.

The reconciliation of the funded status of the plans at December 29, 2001 and
December 30, 2000 is as follows:

                                                    2001            2000
                                                 ----------     -----------

Change in Projected Benefit Obligation (PBO)
During Measurement Period

PBO, November 30 of previous year                 $ 47,750        $ 45,555

Service Cost                                           217             569
Interest Cost                                        3,106           3,311
Actuarial (Gain)/Loss                               (2,678)          1,124
Benefits Paid                                       (2,791)         (2,809)
                                                  --------        --------
PBO, November 30                                  $ 45,604        $ 47,750
                                                  ========        ========



Change in Plan Assets During the Measurement Period

Plan Assets at Fair Value, November 30
 of previous year                            $ 47,944              $ 48,205
Actual Return on Plan Assets                   (2,286)                  795
Employer Contribution                             857                 1,753
Benefits Paid                                  (2,791)               (2,809)
                                             --------              --------
Plan Assets at Fair Value, November 30       $ 43,724              $ 47,944
                                             ========              ========


The reconciliation of the Prepaid/(Accrued) plans at December 29, 2001 and
December 30, 2000 is as follows:
                                                       2001           2000
                                                       ----           ----
Reconciliation of Prepaid/(Accrued)

Funded Status of the Plan                           $(1,880)       $   195
Unrecognized Net (Gain)/Loss                          4,878          4,400
Unrecognized Prior Service Cost                        (357)          (397)
Unrecognized Net Transition (Asset)/Obligation        3,161            151
                                                    -------        -------
Net Amount Recognized                               $ 5,802        $ 4,349
                                                    =======        =======

Prepaid Benefit Cost                                $ 3,785        $ 3,123
Accrued Benefit Liability                            (2,736)        (3,108)
Accumulated Other Comprehensive Income                4,753          4,334
                                                    -------        -------
Net Amount Recognized                               $ 5,802        $ 4,349
                                                    =======        =======

Components of Net Periodic Benefit Cost for Fiscal Year

                                                2001       2000        1999
                                                ----       ----        ----
Service Cost                                 $    217   $    569    $    760
Interest Cost                                   3,106      3,311       3,290
Expected Return of Plan Assets                 (3,987)    (4,026)     (3,707)
Amortization of Unrecognized:
   Net Loss                                        86        110         244
   Prior Service Cost                             (45)       (59)        (79)
   Net Transition (Asset)/Obligation               27         27          36
Curtailment (Gain)/Loss                            --         --        (299)
                                             --------   --------    ---------
Net Periodic Pension (Income)/Cost           $   (596)  $    (68)   $    245
                                             ========   =========   ========

Other Comprehensive (Loss)/Income            $   (419)  $ (1,533)   $  1,055

Accrued Benefit Obligation, November 30      $ 44,456   $ 46,715    $ 43,814

<PAGE>

Assumptions used in accounting for defined benefit pension plans are as follows:

                                               2001        2000        1999
                                             Qualified   Qualified   Qualified
                                               Plans       Plans       Plans

Discount rate                                  7.5%        7.5%         7.5%
Rate of increase in compensation levels        5.0%        5.0%         5.0%
Expected long-term rate of return on assets    8.5%        8.5%         8.5%

Assets of the Company's qualified plans are invested in directed trusts. Assets
in the directed trusts are invested in common and preferred stocks, corporate
bonds, money market funds and U.S. government obligations.

The Company also contributes to certain union retirement and insurance funds
established to provide retirement benefits and group life, health and accident
insurance for eligible employees. The total cost of these contributions was
$2,112, $2,330 and $3,985 in 2001, 2000 and 1999, respectively. The actuarial
present value of accumulated plan benefits and net assets available for benefits
for employees in the union administered plans are not determinable from
information available to the Company.
Long Term Savings and Investment Plan

The Company sponsors the Salant Long Term Savings and Investment Plan, under
which eligible salaried employees may contribute up to 15% (which will be
increased to 50% in 2002) of their annual compensation, subject to certain
limitations, to a fixed income fund, the Company's common stock (through 1999)
and/or selected mutual funds. The Company contributes a minimum matching amount
of 20% of the first 6% of a participant's annual compensation and may contribute
an additional discretionary amount in cash or in the Company's common stock. In
2001, 2000 and 1999 Salant's aggregate contributions to the Long Term Savings
and Investment Plan amounted to $115, $111 and $140, respectively.

Note 14.  Stock Options and Shareholder Rights

Pursuant to the Plan, on the Effective Date, all existing stock options for the
Old Common Stock were cancelled and the Company established, in accordance with
the description set forth in the Plan, the Salant Corporation 1999 Stock Award
and Incentive Plan (the "Incentive Plan"). The Plan provides that Salant will
reserve 10% of the outstanding New Common Stock, on a fully diluted basis, as of
the Effective Date, in order to create new employee stock and stock option plans
for the benefit of the members of management and the other employees of Salant.
In addition, the Plan provides that, on the Effective Date, a management stock
option plan will be authorized pursuant to which options to acquire a certain
percentage of such 10% reserve will be granted to (i) the directors of Salant
and (ii) those members of management of Salant selected by executive management
and approved by the non-management members of the board of directors of Salant.
The Plan also provides that the decision to grant any additional stock options
from the balance of the 10% reserve referred to above, and the administration of
the stock plans, will be at the discretion of the non-management members of the
board of directors of Salant.


The following table summarizes stock option transactions during 1999, 2000 and
2001:
<TABLE>
<CAPTION>

                                                                            Weighted
                                                                             Average
                                                                            Exercise
                                                  Shares      Price Range     Price

<S>                            <C>               <C>         <C>     <C>      <C>
Options outstanding at January 2, 1999           1,266,367   $1.7188-9.82     $3.85
Options cancelled due to reorganization - 1999  (1,266,367)  $1.7188-9.82     $3.85
Options granted during 1999                      1,814,554   $4.125-5.875     $4.99
Options exercised during 1999                            0
Options surrendered or canceled during 1999       (895,609)        $5.875     $5.88
                                                -----------
Options outstanding at January 1, 2000             914,945   $4.125-5.875     $4.13
Options granted during 2000                         33,000     $2.50-2.87     $2.64
Options exercised during 2000                            0
Options surrendered or cancelled during 2000      (134,001)  $4.125-5.875     $4.16
                                                -----------
Options outstanding at December 30, 2000           813,944    $2.50-4.125     $4.07
Options granted during 2001                        217,500          $1.64     $1.64
Options exercised during 2001                            0
Options surrendered or canceled during 2001        (76,667)   $1.64-4.125     $3.53
                                                ----------
Options outstanding at December 29, 2001           954,777
                                                ==========

Options exercisable at December 29, 2001           814,291    $1.64-4.125     $3.88
                                                ==========

Options exercisable at December 30, 2000           630,961    $2.50-4.125     $4.10
                                                ==========
</TABLE>

The 895,609 of options shown in the above table as "surrendered or canceled"
during 1999 reflect 890,777 of options that were issued at $5.875 and repriced
to $4.125, all within fiscal 1999.

The following tables summarize information about outstanding stock options as of
December 29, 2001 and December 30, 2000:
<TABLE>
<CAPTION>

                                                 Options Outstanding                        Options Exercisable

                                                       Weighted Average
                                          Number           Remaining        Weighted          Number           Weighted
                                     Outstanding at    Contractual Life      Average      Exercisable at       Average
      Range of Exercise Price            12/29/01                           Exercise         12/29/01       Exercise Price
                                                                              Price

<S>            <C>                            <C>                   <C>           <C>          <C>               <C>
               $1.64                          202,500               9.92          $1.64        67,513            $1.64
            $2.50-$2.87                        28,000               8.37          $2.67        22,501            $2.65
              $4.125                          724,277               7.78          $4.13       724,277            $4.13

           $1.64-$4.125                       954,777               8.25          $3.56       814,291            $3.88

                                                       Weighted Average
                                          Number           Remaining        Weighted          Number           Weighted
                                     Outstanding at    Contractual Life      Average      Exercisable at       Average
      Range of Exercise Price            12/30/00                           Exercise         12/30/00       Exercise Price
                                                                              Price

           $2.50 -$2.87                        33,000               9.37          $2.64        12,002           $2.66
              $4.125                          780,944               8.77          $4.13       618,959           $4.13

           $2.50-$4.125                       813,944               8.80          $4.07       630,961           $4.10
</TABLE>

In summary, as of December 29, 2001, there were 1,111,111 shares of New Common
Stock reserved for the exercise of stock options and 156,334 shares of New
Common Stock available for future grants of stock options or awards.

All stock options are granted at fair market value of the New Common Stock at
the grant date. The weighted average fair market value of the stock options
granted during 2001, 2000 and 1999 was $1.64, $2.64 and $4.99, respectively. The
fair value of each stock option grant is estimated on the date of grant using
the Black-Scholes multiple option pricing model with the following weighted
average assumptions used for grants in 2001, 2000 and 1999, respectively:
risk-free interest rate of 4.00%, 6.00% and 6.00%; expected dividend yield of 0%
for all years; expected life of 5.75, 5.25 and 5.75 years; and expected
volatility of 167%, 98% and 316%. The outstanding stock options at December 29,
2001 have a weighted average contractual life of 8.25 years.

The Company accounts for the stock option plans in accordance with Accounting
Principles Board Opinion No. 25, under which no compensation cost is recognized
for stock option awards. Had compensation cost been determined consistent with
SFAS No. 123, "Accounting for Stock-Based Compensation", the Company's pro forma
net (loss)/income for 2001, 2000 and 1999 would have been $(2,175), $12,338 and
$16,687, respectively. The Company's pro-forma net (loss)/income per-share for
fiscal 2001 and 2000 would have been $(0.22) and $1.25, respectively. The
Company's pro forma net income per share based upon the New Common Stock for
1999 would have been $1.67.

Note 15.  Deferred Liabilities
                                  December 29,          December 30,
                                          2001                  2000

Deferred pension obligations           $ 4,753               $ 4,334

Deferred rent                            1,479                 1,294
Other deferred liabilities                  --                    14
                                       -------               -------

                                       $ 6,232               $ 5,642
                                       =======               =======

Note 16.  Commitments and Contingencies

(a)      Lease Commitments

The Company conducts a portion of its operations in premises occupied under
leases expiring at various dates through 2013. Certain of the leases contain
renewal options. Rental payments under certain leases may be adjusted for
increases in taxes and operating expenses above specified amounts. In addition,
certain of the leases for retail outlet stores contain provisions for additional
rent based upon sales.

<PAGE>

In 2001, 2000 and 1999, rental expense was $5,653, $3,891 and $5,144,
respectively. As of December 29, 2001, future minimum rental payments under
noncancelable operating leases (exclusive of renewal options, percentage
rentals, and adjustments for property taxes and operating expenses) were as
follows:

                           Fiscal Year
                           2002  $  5,743
                           2003     5,569
                           2004     5,349
                           2005     4,616
                           2006     3,866
               Thereafter          14,133
                                 ---------
 Total (Not reduced by minimum   $ 39,276
        sublease rentals of $16,777)

(b)      Employment Agreements

The Company has employment agreements with certain executives, which provide for
the payment of compensation aggregating approximately $1,675 in 2002 and $250 in
2003. In addition, such employment agreements provide for incentive compensation
based on various performance criteria.

Note 17.  Discontinued Operations

In December 1998, the Company discontinued the operations of its Children's
Group, which produced and marketed children's blanket sleepers primarily using a
number of well-known licensed characters created by, among others, DISNEY and
WARNER BROTHERS. The Children's Group also marketed pajamas under the DR. DENTON
and OSHKOSH B'GOSH trademarks, and sleepwear and underwear under the JOE BOXER
trademark.

For the fourth quarter of fiscal 2001, the Company recorded income of $273
related to better than anticipated recovery on the settlement of liabilities
related to the Children's business. At the end of fiscal 2001, $461 remained in
the reserve of which approximately $350 was for severance and the remaining
balance related to the settlement of liabilities and other closing costs. As of
December 29, 2001, the Children's Group had assets of $9, accrued liabilities of
$41 and a reserve of $461, resulting in net liabilities of discontinued
operations of $493.

For the fourth quarter of fiscal 2000, the Company recorded income of $569
related to better than anticipated recovery on the sale of assets (primarily
real estate holdings) related to the Children's business. At the end of fiscal
2000, $550 remained in the reserve of which approximately $350 was for severance
and the remaining balance related to the disposal of assets and other costs. As
of December 30, 2000, the Children's Group had assets of $30, accrued
liabilities of $224 and a reserve of $550, resulting in net liabilities of
discontinued operations of $744.

For fiscal 1999, the Company recognized a charge of $1,955 for additional
expenses incurred during the phase-out period and additional expenses needed to
dispose of the assets related to the Children's business. At the end of Fiscal
1999, $941 remained in the reserve of which approximately $300 was for severance
and the remaining balance related to the disposal of assets. During 1999, the
division had net sales of $5,493 and a net loss of $1,955. Pursuant to a
purchase and sale agreement dated January 14, 1999, the Company sold all of its
right, title and interest in, certain assets (Dr. Denton trademark, selected
inventory and machinery and equipment) of the Children's Group. Accounts
receivable, prepaids, accounts payable and accrued liabilities were collected or
paid through the normal course of business. Property, plant and equipment were
written down to its estimated net realizable value and the Company has disposed
of these assets.

Note 18.  Accumulated Other Comprehensive Income/(Loss)
<TABLE>
<CAPTION>
                                                                       Accum-
                                      Foreign       Minimum           ulated
                                     Currency       Pension           other
                                    Translation    Liability          Compre-
                                      Adjust-        Adjust-          hensive
                                       ments          ments           Income/
                                                                      (Loss)
2001

<S>                                   <C>             <C>               <C>
  Beginning of the year balance       $ (118)         $(4,334)          $(4,452)
  12 month change                          5             (419)             (414)
                                      -------         -------           -------
  End of the year balance             $ (113)         $(4,753)          $(4,866)
                                      ======          =======           =======

2000

  Beginning of the year balance       $ (143)        $ (2,801)         $ (2,944)
  12 month change                         25           (1,533)           (1,508)
                                      ------         --------          --------
  End of the year balance             $ (118)        $ (4,334)         $ (4,452)
                                      ======         ========          ========

1999

  Beginning of the year balance       $ (197)        $ (3,856)         $ (4,053)
  12 month change                         54            1,055             1,109
                                      ------         --------          --------
  End of the year balance             $ (143)        $ (2,801)         $ (2,944)
                                      ======         ========          ========
</TABLE>


Note 19.  Quarterly Financial Information (Unaudited)

                       Fiscal year ended December 29, 2001

                                   Total   4th Qtr.  3rd Qtr. 2nd Qtr.  1st Qtr.

Net sales                        $207,773  $59,199  $55,098  $44,028    $49,448
Gross profit                       45,425   10,410   12,858   11,644     10,513
Net (loss)/income                  (1,876)  (1,193)   1,409      307     (2,399)
Diluted (loss)/earnings per share  $(0.19)  $(0.12)   $0.14    $0.03     $(0.24)

                       Fiscal year ended December 30, 2000

                                   Total   4th Qtr.  3rd Qtr.  2nd Qtr. 1st Qtr.

Net sales                       $208,303   $49,473   $56,344  $45,830  $56,656
Gross profit                      55,595    14,065    13,777   14,112   13,641
Net income                        13,280     5,193     3,744    2,602    1,741
Diluted earnings per share         $1.34     $0.52     $0.38    $0.26    $0.18

Reference is made to Notes 3 and 17 concerning fourth quarter adjustments during
the years ended December 29, 2001 and December 30, 2000.

Note 20. Legal Proceedings

The Company is a defendant in several legal actions. In the opinion of the
Company's management, based upon the advice of the respective attorneys handling
such cases, such actions are not expected to have a material adverse effect on
the Company's consolidated financial position, results of operations or cash
flow.

The Company is a defendant in a declaratory judgment action, captioned Hartford
Fire Insurance Company v. Salant Corporation, Index No. 60233/98, in the Supreme
Court of the State of New York, County of New York (the "Hartford Action"). The
Company's insurers seek a declaratory judgment that the claims asserted against
the Company in a lawsuit captioned Maria Delores Rodriguez-Olvera, et al. v.
Salant Corp., et al., Case No. 97-07-14605-CV, in the 365th Judicial District
Court of Maverick County, Texas (the "Rodriguez-Olvera Action") are not covered
under the policies that the insurers had issued. The Company's insurers
nevertheless provided a defense to the Company in the Rodriguez-Olvera Action
and paid $30 million to settle the case without prejudice to their positions in
the Hartford Action. Currently, there are discussions being held with a view to
reaching an agreement for the settlement of the Hartford Action; if the
settlement proposal is achieved as contemplated, management believes there would
be no material impact on the Company's financial position or the results of
operations. Pending such a settlement of this action, Salant's insurers have not
withdrawn their reservation of rights, and the possibility remains that one or
more of such insurers will seek recourse against Salant. Management believes the
liability for the Company should not exceed $250, its deductible on its
insurance policy with Hartford Fire Insurance Company.

Note 21.  Subsequent Events

On January 4, 2002, Salant Corporation, through its wholly owned subsidiary,
Salant Holding Corporation ("SHC"), acquired from Axis Clothing Corporation
("Axis"), certain of Axis' assets pursuant to an Asset Purchase Agreement dated
as of October 15, 2001 by and between SHC, Axis and Richard Solomon ("Solomon")
an individual. The assets acquired from Axis consisted of, among other things,
trademarks, inventory, contract rights, fixed assets and certain office
equipment primarily located in California (collectively, the "Axis Assets"). As
a result of the acquisition, Salant diversified its operations for men's
designer sportswear by expanding its channels of distribution, including
specialty stores. The results of Axis's operations will be included in the
statement of operations as of the acquisition date.

The Company did not assume any accounts payable, accrued liabilities or debt,
however the Company did assume several leases and contracts. In conjunction with
the Asset Purchase Agreement, a three-year employment contract was signed
between Solomon and SHC, along with SHC signing an agreement to lease office
space (at current market rates) from Solomon. The Company is in the process of
obtaining third-party valuations of certain intangible assets; thus, the
allocation of the purchase price is subject to refinement. The following table
summarizes the estimated fair values of the assets acquired at the date of
acquisition:
         Current assets                                   $      948
         Property, plant, and equipment                          100
         Intangible assets                                       400
         Goodwill and other identified intangibles            11,631
                                                            --------
           Total assets acquired                             $13,079
                                                             =======

The aggregate purchase price for the Axis Assets was approximately $12,448, plus
estimated direct acquisition costs of $631. Of the total purchase price $10,648
was paid at closing and $1,800 has been placed in escrow and is payable in equal
payments over the next 2 years. The purchase price was based upon arms-length
negotiations considering (i) the value of the Axis brand, (ii) the quality of
the assets and (iii) the estimated cash flow from the Axis Assets. The principal
source of funds for the Axis Assets was working capital funds.

The following unaudited consolidated pro forma results of operations of the
Company for the years ended December 29, 2001 and December 30, 2000 give effect
to the acquisition as if it occurred on January 2, 2000:

                                          December 29,          December 30,
                                                 2001                  2000
                                           (Unaudited)           (Unaudited)

 Net Sales                                 $  242,615             $ 237,737
 Income from continuing operations         $    1,716             $  15,187

 Basic & diluted earnings per share
     from continuing operations            $     0.17             $    1.53

The unaudited pro forma information above has been prepared for comparative
purposes only and includes certain adjustments to the Company's historical
statements of income, such as the recording of goodwill and increased interest
expense or reduction of interest income due to the cost of the acquisition. The
results do not purport to be indicative of the results of operations that would
have resulted had the acquisition occurred at the beginning of the period, or of
future results of operations of the consolidated entities.



<PAGE>


ITEM 9.           CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
                  ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
                                    PART III

ITEM 10.          DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The information required by Item 10 is incorporated by reference herein from the
Company's Proxy Statement to be filed by the Company relating to the 2002 annual
meeting of shareholders.

ITEM 11.          EXECUTIVE COMPENSATION

The information required by Item 11 is incorporated by reference herein from the
Company's Proxy Statement to be filed by the Company relating to the 2002 annual
meeting of shareholders.

ITEM 12.          SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The information required by Item 12 is incorporated by reference herein from the
Company's Proxy Statement to be filed by the Company relating to the 2002 annual
meeting of shareholders.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by Item 13 is incorporated by reference herein from the
Company's Proxy Statement to be filed by the Company relating to the 2002 annual
meeting of shareholders.

                                     PART IV

ITEM 14.          EXHIBITS, FINANCIAL STATEMENT SCHEDULE AND REPORTS ON FORM 8-K

(a) 1.  Financial Statements

The following financial statements are included in Item 8 of this Annual Report:

         Independent Auditors' Report

         Consolidated Statements of Operations

         Consolidated Statements of Comprehensive (Loss)/Income

         Consolidated Balance Sheets

         Consolidated Statements of Shareholders' Equity

         Consolidated Statements of Cash Flows

         Notes to Consolidated Financial Statements


(a) 2.  Financial Statement Schedule

The following Financial Statement Schedule for the years ended December 29,
2001, December 30, 2000 and January 1, 2000 is filed as part of this Annual
Report:

         Schedule II - Valuation and Qualifying Accounts and Reserves

All other financial statement schedules have been omitted because they are
inapplicable or not required, or the information is included elsewhere in the
financial statements or notes thereto.

                       SALANT CORPORATION AND SUBSIDIARIES

SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
<TABLE>
<CAPTION>

COLUMN A                              COLUMN B              COLUMN C               COLUMN D       COLUMN E
                                                                      (2)
                                                                    Charged
                                                        (1)            to
                                     Balance at     Charged to       Other                          Balance
                                      Beginning     Costs and       Accounts        Deductions      at End
Description                          of Period       Expenses     -- Describe     -- Describe      of Period
                                     ---------      ---------     -----------     -----------     ---------

YEAR ENDED DECEMBER 29, 2001:

Accounts receivable allowance
<S>                                  <C>            <C>          <C>           <C>                 <C>
  for doubtful accounts              $2,625         $ 763        $  --         $   446(A)          $2,942

Reserve for business restructuring   $1,070         $(100)       $  --         $   386(B)          $  584


YEAR ENDED DECEMBER 30, 2000:

Accounts receivable allowance
  for doubtful accounts              $2,419         $  526        $ --         $   320(A)         $2,625

Reserve for business restructuring   $2,308         $(629)        $ --         $   609(B)         $1,070

YEAR ENDED JANUARY 1, 2000:

Accounts receivable allowance
  for doubtful accounts              $2,661         $  260        $ --         $  502 (A)         $2,419

Reserve for business restructuring   $3,551         $4,039        $ --         $5,282 (B)         $2,308


</TABLE>


NOTES:

(A) Uncollectible accounts written off, less recoveries. (B) Costs incurred in
plant closings and business restructuring.


<PAGE>


(a)(3) Exhibits
<TABLE>
<CAPTION>

                                                                 Incorporation
Number         Description                                       By Reference To

<C>                                                                      <C>
2.1            Third Amended Disclosure                          Exhibit 1 to
               Statement of Salant                               Form 8-A dated
               Corporation, and Denton                           July 28, 1993.
               Mills, Inc., dated
               May 12,1993.

2.2            Third Amended Joint                               Included as
               Chapter 11 Plan of                                Exhibit D-1
               Reorganization of                                 to Exhibit 1
               Salant Corporation                                to Form 8-A
               and Denton Mills, Inc.                            dated July 28, 1993.

2.3            Chapter 11 Plan of Reorganization                 Exhibit 2.3 to Form 8-K dated
               for Salant Corporation, dated                     December 29, 1998.
               December 29, 1998.

2.4            Disclosure Statement for Chapter 11               Exhibit 2.4 to Form 8-K dated
               Plan of Reorganization, dated                     December 29, 1998.
               December 29, 1998.

2.5            First Amended Chapter 11 Plan of                  Exhibit 2.5 to Form 8-K dated
               Reorganization for Salant                         April 30, 1999.
               Corporation, dated
               February 3, 1999.

2.6            First Amended Disclosure                          Exhibit 2.7 to Annual Report on
               Statement for Chapter 11 Plan                     Form 10-K for Fiscal Year 1999.
               of Reorganization for Salant
               Corporation, dated
               February 3, 1999.

2.7            Order Pursuant to Section 1129                    Exhibit 99.3 to Salant
               of the Bankruptcy Code Confirming                 Corporation's Current Report on
               the First Amended Plan of                         Form 8-K dated April 30, 1999.
               Reorganization of Salant
               Corporation, dated
               April 16, 1999.

3.1            Form of Amended and                               Included as Exhibit
               Restated Certificate of                           D-1 to Exhibit 2
               Incorporation of Salant                           to Form 8-A dated
               Corporation.                                      July 28, 1993.

3.2            Form of Bylaws, as amended, of                    Exhibit 3.2 to Form 10-K
               Salant Corporation, effective                     dated March 24, 1995
               September 21, 1994.

3.3            Amended and Restated                              Exhibit 1.1 to
               Certificate of                                    Form 8-A dated
               Incorporation of                                  May 12, 1999
               Salant Corporation,
               effective May 11, 1999.

3.4            Amended and Restated                              Exhibit 1.2 to
               By-laws of Salant                                 Form 8-A dated
               Corporation, effective                            May 12, 1999
               May 11, 1999.

4.1            Rights Agreement dated as of                      Exhibit 1 to Current Report
               December 8, 1987 between Salant                   on Form 8-K dated December 8, 1987.
               Corporation and The Chase
               Manhattan Bank, N.A.,
               as Rights Agent.  The Rights
               Agreement includes as Exhibit B the
               form of Right Certificate.

4.2            Form of First Amendment                           Exhibit 3 to
               to the Rights Agreement                           Amendment No. 1 to
               between Salant Corporation                        Form 8-A dated
               and Mellon Securities.                            July 29, 1993.

4.3            Indenture, dated as of                            Exhibit 10.34 to
               September 20, 1993, between Salant                Quarterly Report
               Corporation and Bankers                           on Form 10-Q for
               Trust Company, as trustee,                        the quarter ended
               for the 10-1/2% Senior                            October 2, 1993.
               Secured Notes due
               December 31, 1998.

10.1           Revolving Credit,                                 Exhibit 10.33 to
               Factoring and Security                            Quarterly Report
               Agreement dated September 29, 1993,               on Form 10-Q for
               between Salant Corporation                        the quarter ended
               and The CIT Group/Commercial                      October 2, 1993.
               Services, Inc.

10.2           Salant Corporation 1987 Stock Plan.*              Exhibit 19.2 to Annual Report on
                                                                 Form 10-K for fiscal year 1987.

10.3           Salant Corporation 1988 Stock Plan.*              Exhibit 19.3 to Annual Report on
                                                                 Form 10-K for fiscal year 1988.

10.4           First Amendment, effective                        Exhibit 19.1 to Quarterly Report
               as of July 25, 1989, to the Salant                on Form 10-Q for the quarter
               Corporation 1988 Stock Plan. *                    ended September 30, 1989.

10.5           Form of Salant Corporation 1988                   Exhibit 19.7 to Annual Report on
               Stock Plan Employee Agreement. *                  Form 10-K for fiscal year 1988.

10.6           Form of Salant Corporation                        Exhibit 19.8 to
               1988 Stock Plan Director                          Annual Report on
               Agreement. *                                      Form 10-K for fiscal
                                                                 year 1988.

10.7           License Agreement, dated                          Exhibit 19.1 to Annual Report
               January 1, 1991, by and between                   on Form 10-K for fiscal year 1992.
               Perry Ellis International Inc.
               and Salant Corporation regarding
               men's sportswear.

10.8           License Agreement, dated                          Exhibit 19.2 to Annual Report
               January 1, 1991, by and between                   on Form 10-K for
               Perry Ellis International Inc.                    fiscal year 1992.
               and Salant Corporation regarding
               men's dress shirts.

10.9           Forms of Salant Corporation 1993                  Exhibit 10.34 to Annual
               Stock Plan Directors' Option                      Report on Form
               Agreement. *                                      10-K for Fiscal Year 1993.

10.10          Letter Agreement, dated as of                     Exhibit 10.45 to
               August 24, 1994, amending the                     Quarterly Report on
               Revolving Credit, Factoring and                   Form 10-Q for the
               Security Agreement, dated                         quarter ended October 1, 1994.
               September 20, 1993,
               between The CIT Group/Commercial
               Services, Inc. and Salant Corporation.

10.11          Third Amendment to Credit Agreement,              Exhibit 10.48 to Current Report on
               dated February 28, 1995, to the                   Form 8-K, dated March 2, 1995.
               Revolving Credit, Factoring and
               Security Agreement, dated
               September 20, 1993, as amended,
               between The CIT Group/Commercial
               Services, Inc. and Salant Corporation.

10.12          Salant Corporation Retirement Plan,               Exhibit 10.23 to Annual Report on
               as amended and restated. *                        Form 10-K for Fiscal Year 1994.

10.13          Salant Corporation Pension Plan,                  Exhibit 10.24 to Annual Report on
               as amended and restated. *                        Form 10-K for Fiscal Year 1994.

10.14          Salant Corporation Long Term Savings              Exhibit 10.25 to Annual Report on
               and Investment Plan as amended                    Form 10-K for Fiscal Year 1994.
               and restated. *

10.15          Fourth Amendment to Credit                        Exhibit 10.27 to
               Agreement, dated as of March 1,                   Quarterly Report
               1995, to the Revolving Credit,                    on Form 10-Q for
               Factoring and Security Agreement,                 the quarter
               dated as of September 20, 1993,                   ended April 1,
               as amended, between Salant                        1995.
               Corporation and The CIT Group/
               Commercial Services, Inc.

10.16          Fifth Amendment to Credit                         Exhibit 10.29
               Agreement, dated as of                            to Quarterly
               June 28, 1995, to the                             Report on
               Revolving Credit, Factoring                       Form l0-Q for
               and Security Agreement,                           the quarter
               dated as of September 20,                         ended July 1,
               1993, as amended, between                         1995.
               Salant Corporation and The
               CIT Group/Commercial Services, Inc.

10.17          Sixth Amendment to Credit                         Exhibit 10.30
               Agreement, dated as of                            to Quarterly
               August 15, 1995, to the                           Report on
               Revolving Credit, Factoring                       Form l0-Q for
               and Security Agreement,                           the quarter
               dated as of September 20,                         ended July 1,
               1993, as amended, between                         1995.
               Salant Corporation and The
               CIT Group/Commercial Services, Inc.

10.18          Letter from The CIT Group/                        Exhibit 10.31
               Commercial Services, Inc.,                        to Quarterly
               dated as of July 11, 1995,                        Report on
               regarding the waiver of a                         Form l0-Q for
               default.                                          the quarter
                                                                 ended July 1,
                                                                 1995.

10.19          Letter Agreement between                          Exhibit 10.31
               Salant Corporation and The                        to Quarterly
               CIT Group/Commercial Services,                    Report on
               Inc. dated as of July 11, 1995,                   Form l0-Q for
               regarding the Seasonal Overadvance                the quarter
               Subfacility.                                      ended July 1,
                                                                 1995.

10.20          Seventh Amendment to Credit                       Exhibit 10.34 to
               Agreement, dated as of                            Annual Report on
               March 27, 1996, to the                            Form 10-K for
               Revolving Credit, Factoring                       fiscal year 1995.
               and Security Agreement,
               dated as of September 20, 1993, as amended, between Salant
               Corporation and The CIT Group/Commercial Services, Inc.

10.21          First Amendment to the Salant                     Exhibit 10.35 to
               Corporation Retirement Plan, dated                Quarterly Report on
               as of January 31, 1996. *                         Form 10-Q for the
                                                                 quarter ended
                                                                 March 30, 1996.

10.22          First Amendment to the Salant                     Exhibit 10.36 to
               Corporation Long Term Savings and                 Quarterly Report on
               Investment Plan, effective as of                  Form 10-Q for the
               January 1, 1994. *                                quarter ended
                                                                 March 30, 1996.

10.23          Eighth Amendment to Credit Agreement,             Exhibit 10.37 to
               dated as of June 1, 1996, to the                  Quarterly Report on
               Revolving Credit, Factoring and                   Form 10-Q for the
               Security Agreement, dated as of                   quarter ended
               September 20, 1993, as amended,                   June 29, 1996.
               between Salant Corporation and
               The CIT Group/Commercial Services,
               Inc.

10.24          Ninth Amendment to Credit Agreement,              Exhibit 10.38 to
               dated as of August 16,1996, to the                Quarterly Report on
               Revolving Credit, Factoring and                   Form 10-Q for the
               Security Agreement, dated as of                   quarter ended
               September 20, 1993, as amended,                   June 29, 1996.
               between Salant Corporation and
               The CIT Group/Commercial Services,
               Inc.

10.25          Salant Corporation 1996 Stock Plan.*              Exhibit 10.40 to Annual Report on
                                                                 Form 10-K for Fiscal Year 1996.

10.26          Tenth Amendment to Credit Agreement,              Exhibit 10.41 to Annual Report on
               dated as of February 20, 1997, to                 Form 10-K for Fiscal Year 1996.
               the Revolving Credit, Factoring and
               Security Agreement, dated as of
               September 20, 1993, as amended,
               between Salant Corporation and
               The CIT Group/Commercial Services,
               Inc.

10.27          Employment Agreement, dated as                    Exhibit 10.43 to Annual Report on
               of March 24, 1997, between                        Form 10-K for Fiscal Year 1996.
               Jerald S. Politzer and
               Salant Corporation. *

10.28          Employment Agreement, dated as of                 Exhibit 10.44 to Quarterly Report on
               May 1, 1997, between Todd Kahn and                Form 10-Q for the quarter ended
               Salant Corporation. *                             June 28, 1997.

10.29          Employment Agreement, dated as of                 Exhibit 10.45 to Quarterly Report on
               August 18, 1997 between Philip A.                 Form 10-Q for the quarter ended
               Franzel and Salant Corporation. *                 June 28, 1997.

10.30          Eleventh Amendment to Credit                      Exhibit 10.46 to Quarterly Report on
               Agreement, dated as of                            Form 10-Q for the quarter ended
               August 8, 1997, to the Revolving                  June 28, 1997.
               Credit, Factoring and Security
               Agreement, dated as of
               September 20, 1993, as amended,
               between Salant Corporation and
               The CIT Group/Commercial Services, Inc.

10.31          Letter Agreement, dated                           Exhibit 10.48 to Current Report on
               March 2, 1998, by and among Salant                Form 8-K dated March 4, 1998.
               Corporation, Magten Asset Management
               Corp., as agent on behalf of
               certain of its accounts, and Apollo
               Apparel Partners, L.P.

10.32          Twelfth Amendment and Forbearance                 Exhibit 10.49 to Current Report on
               Agreement to Credit Agreement, dated              Form 8-K dated March 4, 1998.
               as of March 2, 1998, by and between
               Salant Corporation and The CIT
               Group/Commercial Services, Inc.

10.33          Thirteenth Amendment and Forbearance              Exhibit 10.53 to Current Report on
               Agreement, dated as of June 1, 1998,              Form 8-K dated June 1, 1998.
               By and between Salant Corporation
               And The CIT Group/Commercial
               Services, Inc.

10.34          Commitment Letter, dated June 1,                  Exhibit 10.54 to Current Report
               on 1998, by and between Salant                    Form 8-K dated June 1, 1998.
               Corporation and The CIT
               Group/Commercial Services, Inc.

10.35          Letter Agreement, dated June 1,                   Exhibit 10.55 to Current Report on
               1998, by and among Salant                         Form 8-K dated June 1, 1998.
               Corporation, Magten Asset Management
               Corp., as agent on behalf of
               certain of its accounts, and Apollo
               Apparel Partners, L.P.

10.36          Letter Agreement, dated July 8,                   Exhibit 10.44 to Quarterly Report on
               1998, amending the Letter Agreement,              Form 10-Q for the quarter ended
               dated March 2, 1998, as amended,                  July 4, 1998.
               By and among Salant Corporation,
               Magten Asset Management Corp.,
               as agent on behalf of certain of its
               accounts, and Apollo Apparel
               Partners, L.P.


10.37          Letter Agreement, dated July 20,                  Exhibit 10.45 to Quarterly Report on
               1998, amending the Employment                     Form 10-Q for the quarter ended
               Agreement, dated August 18, 1997,                 October 3, 1998.
               between Philip A. Franzel and
               Salant Corporation. *

10.38          Letter Agreement, dated July 20,                  Exhibit 10.46 to Quarterly Report on
               1998, amending the Employment                     Form 10-Q for the quarter ended
               Agreement, dated May 1, 1997,                     October 3, 1998.
               between Todd Kahn and Salant
               Corporation. *

10.39          Letter Agreement, dated July 20,                  Exhibit 10.47 to Quarterly Report on
               1998, amending the Employment                     Form 10-Q for the quarter ended
               Agreement, dated March 20, 1997,                  October 3, 1998.
               between Jerald s. Politzer and
               Salant Corporation. *

10.40          Letter Agreement, dated                           Exhibit 10.48 to Current Report on
               November 30, 1998, by and between                 Form 8-K dated November 30, 1998.
               Salant Corporation and The CIT
               Group/Commercial Services, Inc.


10.41          Letter Agreement, dated                           Exhibit 10.49 to Current Report on
               December 4, 1998, by and between                  Form 8-K dated November 30, 1998.
               Salant Corporation and The CIT
               Group/Commercial Services, Inc.

10.42          Ratification and Amendment                        Exhibit 10.50 to Current Report on
               Agreement, dated as of December 29,               Form 8-K dated December 29, 1998.
               1998, by and between Salant
               Corporation and The CIT Group/Commercial
               Services, Inc.

10.43          Agreement between Salant                          Exhibit 99.4 to Current Report on
               Corporation and Pension Benefit                   Form 8-K dated April 30, 1999.
               Guaranty Corporation, dated
               March 24, 1999.

10.44          Amended and Restated Revolving                    Exhibit 10.43 to Form 10-Q, dated
               Credit and Security Agreement,                    May 17, 1999.
               dated May 11, 1999.

10.45          Employment Agreement, dated                       Exhibit 10.45 to Annual Report on
               February 1, 1999, between Form 10-K for fiscal year 1999.
               Awadhesh Sinha and Salant
               Corporation. *

10.46          Employment Agreement, dated as                    Exhibit 10.46 to Annual Report on
               of May 17, 1999, between Michael                  Form 10-K for fiscal year 1999.
               Setola and Salant Corporation. *

10.47          Letter Agreement, dated July 1, 1999,             Exhibit 10.47 to Annual Report on
               amending the Employment Agreement,                Form 10-K for fiscal year 1999.
               dated February 1, 1999, between
               Awadhesh Sinha and Salant
               Corporation. *

10.48          Salant Corporation 1999 Stock Award               Exhibit A to Salant Corporation
               Incentive Plan.                                   Definitive Proxy Statement on
                                                                 Schedule 14(a)
                                                                 dated April 14, 2000.

10.49          Letter Agreement, dated                           Exhibit 10.29 to Quarterly Report on
               March 28, 2001, amending the                      Form 10-Q for the quarter ended
               Employment Agreement, dated                       March 31, 2001.
               February 1, 1999, as amended July 1, 1999,
               between Awadhesh K.
               Sinha and Salant Corporation. *

10.50          Asset Purchase Agreement dated as                 Exhibit 10.1 to Current Report on
               of October 15, 2001 by and between                on Form 8-K dated January 4, 2002.
               Salant Holding Corporation, Axis
               Clothing Corporation and
               Richard Solomon.

10.51          Second Amended and Restated Revolving
               Credit and Security Agreement, dated
               November 30, 2001.

10.52          Employment Agreement, dated
               August 24, 1999, between
               Howard Posner and Salant
               Corporation. *

10.53          Employment Agreement, dated
               March 13, 2000, between
               William O. Manzer and Salant
               Corporation. *

10.54          Employment Agreement, dated
               August 24, 1999, between
               Jerry Kwiatkowski and Salant
               Corporation. *

21             List of Subsidiaries of the Company

</TABLE>

* constitutes a management contract or compensatory plan or arrangement.


<PAGE>


(b) Reports on Form 8-K

The Company did not file any reports on Form 8-K for the quarter ended December
29, 2001.



<PAGE>


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                               SALANT CORPORATION

Date: March 29, 2002                           By: /s/ Awadhesh K. Sinha
                                               --------------------------------
                                               Awadhesh K. Sinha
                                               Chief Financial Officer and
                                               Chief Operating Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities indicated and on March 29, 2002.

         Signature                                        Title


         /s/  Michael J. Setola                 Chairman of the Board
         -------------------------------------  and Chief Executive Officer
         Michael J. Setola                      (Principal Executive Officer);
                                                Director

         /s/  Awadhesh  K. Sinha                Chief Financial Officer
         -------------------------------------  and Chief Operating Officer
         Awadhesh K. Sinha                      (Principal Financial and
                                                 Accounting Officer)

         /s/   Talton R. Embry                   Director
         -----------------------------------
         Talton R. Embry


         /s/  G. Raymond Empson                  Director
         -----------------------------------
         G. Raymond Empson


         /s/  Ben Evans                          Director
         -----------------------------------
         Ben Evans


         /s/ Rose P. Lynch                       Director
         -----------------------------------
         Rose P. Lynch


<PAGE>



                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549






                                    EXHIBITS


                                       to


                                    FORM 10-K


                   FOR THE FISCAL YEAR ENDED DECEMBER 29, 2001


<PAGE>


                               SALANT CORPORATION
                                  EXHIBIT INDEX
<TABLE>
<CAPTION>

                                                                 Incorporation
Number         Description                                       By Reference To

<C>                                                                      <C>
2.1            Third Amended Disclosure                          Exhibit 1 to
               Statement of Salant                               Form 8-A dated
               Corporation, and Denton                           July 28, 1993.
               Mills, Inc., dated
               May 12,1993.

2.2            Third Amended Joint                               Included as
               Chapter 11 Plan of                                Exhibit D-1
               Reorganization of                                 to Exhibit 1
               Salant Corporation                                to Form 8-A
               and Denton Mills, Inc.                            dated July 28, 1993.

2.3            Chapter 11 Plan of Reorganization                 Exhibit 2.3 to Form 8-K dated
               for Salant Corporation, dated                     December 29, 1998.
               December 29, 1998.

2.4            Disclosure Statement for Chapter 11               Exhibit 2.4 to Form 8-K dated
               Plan of Reorganization, dated                     December 29, 1998.
               December 29, 1998.

2.5            First Amended Chapter 11 Plan of                  Exhibit 2.5 to Form 8-K dated
               Reorganization for Salant                         April 30, 1999.
               Corporation, dated
               February 3, 1999.

2.6            First Amended Disclosure                          Exhibit 2.7 to Annual Report on
               Statement for Chapter 11 Plan                     Form 10-K for fiscal year 1999.
               of Reorganization for Salant
               Corporation, dated
               February 3, 1999.

2.7            Order Pursuant to Section 1129                    Exhibit 99.3 to Salant
               of the Bankruptcy Code Confirming                 Corporation's Current Report on
               the First Amended Plan of                         Form 8-K dated April 30, 1999.
               Reorganization of Salant
               Corporation, dated
               April 16, 1999.

3.1            Form of Amended and                               Included as Exhibit
               Restated Certificate of                           D-1 to Exhibit 2
               Incorporation of Salant                           to Form 8-A dated
               Corporation.                                      July 28, 1993.

3.2            Form of Bylaws, as amended, of                    Exhibit 3.2 to Form 10-K
               Salant Corporation, effective                     dated March 24, 1995
               September 21, 1994.

3.3            Amended and Restated                              Exhibit 1.1 to
               Certificate of                                    Form 8-A dated
               Incorporation of                                  May 12, 1999
               Salant Corporation,
               effective May 11, 1999.

3.4            Amended and Restated                              Exhibit 1.2 to
               By-laws of Salant                                 Form 8-A dated
               Corporation, effective                            May 12, 1999
               May 11, 1999.

4.1            Rights Agreement dated as of                      Exhibit 1 to Current Report
               December 8, 1987 between Salant                   on Form 8-K dated December 8, 1987.
               Corporation and The Chase
               Manhattan Bank, N.A.,
               as Rights Agent.  The Rights
               Agreement includes as Exhibit B the
               form of Right Certificate.

4.2            Form of First Amendment                           Exhibit 3 to
               to the Rights Agreement                           Amendment No. 1 to
               between Salant Corporation                        Form 8-A dated
               and Mellon Securities.                            July 29, 1993.

4.3            Indenture, dated as of                            Exhibit 10.34 to
               September 20, 1993, between Salant                Quarterly Report
               Corporation and Bankers                           on Form 10-Q for
               Trust Company, as trustee,                        the quarter ended
               for the 10-1/2% Senior                            October 2, 1993.
               Secured Notes due
               December 31, 1998.

10.1           Revolving Credit,                                 Exhibit 10.33 to
               Factoring and Security                            Quarterly Report
               Agreement dated September 29, 1993,               on Form 10-Q for
               between Salant Corporation                        the quarter ended
               and The CIT Group/Commercial                      October 2, 1993.
               Services, Inc.

10.2           Salant Corporation 1987 Stock Plan.*              Exhibit 19.2 to Annual Report on
                                                                 Form 10-K for fiscal year 1987.

10.3           Salant Corporation 1988 Stock Plan.*              Exhibit 19.3 to Annual Report on
                                                                 Form 10-K for fiscal year 1988.

10.4           First Amendment, effective                        Exhibit 19.1 to Quarterly Report
               as of July 25, 1989, to the Salant                on Form 10-Q for the quarter
               Corporation 1988 Stock Plan. *                    ended September 30, 1989.

10.5           Form of Salant Corporation 1988                   Exhibit 19.7 to Annual Report on
               Stock Plan Employee Agreement. *                  Form 10-K for fiscal year 1988.

10.6           Form of Salant Corporation                        Exhibit 19.8 to
               1988 Stock Plan Director                          Annual Report on
               Agreement. *                                      Form 10-K for fiscal
                                                                 year 1988.

10.7           License Agreement, dated                          Exhibit 19.1 to Annual Report
               January 1, 1991, by and between                   on Form 10-K for fiscal year 1992.
               Perry Ellis International Inc.
               and Salant Corporation regarding
               men's sportswear.

10.8           License Agreement, dated                          Exhibit 19.2 to Annual Report
               January 1, 1991, by and between                   on Form 10-K for
               Perry Ellis International Inc.                    fiscal year 1992.
               and Salant Corporation regarding
               men's dress shirts.

10.9           Forms of Salant Corporation 1993                  Exhibit 10.34 to Annual
               Stock Plan Directors' Option                      Report on Form
               Agreement. *                                      10-K for Fiscal Year 1993.

10.10          Letter Agreement, dated as of                     Exhibit 10.45 to
               August 24, 1994, amending the                     Quarterly Report on
               Revolving Credit, Factoring and                   Form 10-Q for the
               Security Agreement, dated                         quarter ended October 1, 1994.
               September 20, 1993,
               between The CIT Group/Commercial
               Services, Inc. and Salant Corporation.


10.11          Third Amendment to Credit Agreement,              Exhibit 10.48 to Current Report on
               dated February 28, 1995, to the                   Form 8-K, dated March 2, 1995.
               Revolving Credit, Factoring and
               Security Agreement, dated
               September 20, 1993, as amended,
               between The CIT Group/Commercial
               Services, Inc. and Salant Corporation.

10.12          Salant Corporation Retirement Plan,               Exhibit 10.23 to Annual Report on
               as amended and restated. *                        Form 10-K for Fiscal Year 1994.

10.13          Salant Corporation Pension Plan,                  Exhibit 10.24 to Annual Report on
               as amended and restated. *                        Form 10-K for Fiscal Year 1994.

10.14          Salant Corporation Long Term Savings              Exhibit 10.25 to Annual Report on
               and Investment Plan as amended                    Form 10-K for Fiscal Year 1994.
               and restated. *

10.15          Fourth Amendment to Credit                        Exhibit 10.27 to
               Agreement, dated as of March 1,                   Quarterly Report
               1995, to the Revolving Credit,                    on Form 10-Q for
               Factoring and Security Agreement,                 the quarter
               dated as of September 20, 1993,                   ended April 1,
               as amended, between Salant                        1995.
               Corporation and The CIT Group/
               Commercial Services, Inc.

10.16          Fifth Amendment to Credit                         Exhibit 10.29
               Agreement, dated as of                            to Quarterly
               June 28, 1995, to the                             Report on
               Revolving Credit, Factoring                       Form l0-Q for
               and Security Agreement,                           the quarter
               dated as of September 20,                         ended July 1,
               1993, as amended, between                         1995.
               Salant Corporation and The
               CIT Group/Commercial Services, Inc.

10.17          Sixth Amendment to Credit                         Exhibit 10.30
               Agreement, dated as of                            to Quarterly
               August 15, 1995, to the                           Report on
               Revolving Credit, Factoring                       Form l0-Q for
               and Security Agreement,                           the quarter
               dated as of September 20,                         ended July 1,
               1993, as amended, between                         1995.
               Salant Corporation and The
               CIT Group/Commercial Services, Inc.

10.18          Letter from The CIT Group/                        Exhibit 10.31
               Commercial Services, Inc.,                        to Quarterly
               dated as of July 11, 1995,                        Report on
               regarding the waiver of a                         Form l0-Q for
               default.                                          the quarter
                                                                 ended July 1,
                                                                 1995.

10.19          Letter Agreement between                          Exhibit 10.31
               Salant Corporation and The                        to Quarterly
               CIT Group/Commercial Services,                    Report on
               Inc. dated as of July 11, 1995,                   Form l0-Q for
               regarding the Seasonal Overadvance                the quarter
               Subfacility.                                      ended July 1,
                                                                 1995.

10.20          Seventh Amendment to Credit                       Exhibit 10.34 to
               Agreement, dated as of                            Annual Report on
               March 27, 1996, to the                            Form 10-K for
               Revolving Credit, Factoring                       fiscal year 1995.
               and Security Agreement,
               dated as of September 20, 1993,
               as amended, between Salant
               Corporation and The CIT
               Group/Commercial Services, Inc.

10.21          First Amendment to the Salant                     Exhibit 10.35 to
               Corporation Retirement Plan, dated                Quarterly Report on
               as of January 31, 1996. *                         Form 10-Q for the
                                                                 quarter ended
                                                                 March 30, 1996.

10.22          First Amendment to the Salant                     Exhibit 10.36 to
               Corporation Long Term Savings and                 Quarterly Report on
               Investment Plan, effective as of                  Form 10-Q for the
               January 1, 1994. *                                quarter ended
                                                                 March 30, 1996.

10.23          Eighth Amendment to Credit Agreement,             Exhibit 10.37 to
               dated as of June 1, 1996, to the                  Quarterly Report on
               Revolving Credit, Factoring and                   Form 10-Q for the
               Security Agreement, dated as of                   quarter ended
               September 20, 1993, as amended,                   June 29, 1996.
               between Salant Corporation and
               The CIT Group/Commercial Services,
               Inc.

10.24          Ninth Amendment to Credit Agreement,              Exhibit 10.38 to
               dated as of August 16,1996, to the                Quarterly Report on
               Revolving Credit, Factoring and                   Form 10-Q for the
               Security Agreement, dated as of                   quarter ended
               September 20, 1993, as amended,                   June 29, 1996.
               between Salant Corporation and
               The CIT Group/Commercial Services,
               Inc.

10.25          Salant Corporation 1996 Stock Plan.*              Exhibit 10.40 to Annual Report on
                                                                 Form 10-K for Fiscal Year 1996.

10.26          Tenth Amendment to Credit Agreement,              Exhibit 10.41 to Annual Report on
               dated as of February 20, 1997, to                 Form 10-K for Fiscal Year 1996.
               the Revolving Credit, Factoring and
               Security Agreement, dated as of
               September 20, 1993, as amended,
               between Salant Corporation and
               The CIT Group/Commercial Services,
               Inc.

10.27          Employment Agreement, dated as                    Exhibit 10.43 to Annual Report on
               of March 24, 1997, between                        Form 10-K for Fiscal Year 1996.
               Jerald S. Politzer and
               Salant Corporation. *

10.28          Employment Agreement, dated as of                 Exhibit 10.44 to Quarterly Report on
               May 1, 1997, between Todd Kahn and                Form 10-Q for the quarter ended
               Salant Corporation. *                             June 28, 1997.

10.29          Employment Agreement, dated as of                 Exhibit 10.45 to Quarterly Report on
               August 18, 1997 between Philip A.                 Form 10-Q for the quarter ended
               Franzel and Salant Corporation. *                 June 28, 1997.

10.30          Eleventh Amendment to Credit                      Exhibit 10.46 to Quarterly Report on
               Agreement, dated as of                            Form 10-Q for the quarter ended
               August 8, 1997, to the Revolving                  June 28, 1997.
               Credit, Factoring and Security
               Agreement, dated as of
               September 20, 1993, as amended,
               between Salant Corporation and
               The CIT Group/Commercial Services, Inc.

10.31          Letter Agreement, dated                           Exhibit 10.48 to Current Report on
               March 2, 1998, by and among Salant                Form 8-K dated March 4, 1998.
               Corporation, Magten Asset Management
               Corp., as agent on behalf of
               certain of its accounts, and Apollo
               Apparel Partners, L.P.

10.32          Twelfth Amendment and Forbearance                 Exhibit 10.49 to Current Report on
               Agreement to Credit Agreement, dated              Form 8-K dated March 4, 1998.
               as of March 2, 1998, by and between
               Salant Corporation and The CIT
               Group/Commercial Services, Inc.

10.33          Thirteenth Amendment and Forbearance              Exhibit 10.53 to Current Report on
               Agreement, dated as of June 1, 1998,              Form 8-K dated June 1, 1998.
               By and between Salant Corporation
               And The CIT Group/Commercial
               Services, Inc.

10.34          Commitment Letter, dated June 1,                  Exhibit 10.54 to Current Report
               on 1998, by and between Salant                    Form 8-K dated June 1, 1998.
               Corporation and The CIT
               Group/Commercial Services, Inc.

10.35          Letter Agreement, dated June 1,                   Exhibit 10.55 to Current Report on
               1998, by and among Salant                         Form 8-K dated June 1, 1998.
               Corporation, Magten Asset Management
               Corp., as agent on behalf of
               certain of its accounts, and Apollo
               Apparel Partners, L.P.

10.36          Letter Agreement, dated July 8,                   Exhibit 10.44 to Quarterly Report on
               1998, amending the Letter Agreement,              Form 10-Q for the quarter ended
               dated March 2, 1998, as amended,                  July 4, 1998.
               By and among Salant Corporation,
               Magten Asset Management Corp.,
               as agent on behalf of certain of its
               accounts, and Apollo Apparel
               Partners, L.P.


10.37          Letter Agreement, dated July 20,                  Exhibit 10.45 to Quarterly Report on
               1998, amending the Employment                     Form 10-Q for the quarter ended
               Agreement, dated August 18, 1997,                 October 3, 1998.
               between Philip A. Franzel and
               Salant Corporation. *

10.38          Letter Agreement, dated July 20,                  Exhibit 10.46 to Quarterly Report on
               1998, amending the Employment                     Form 10-Q for the quarter ended
               Agreement, dated May 1, 1997,                     October 3, 1998.
               between Todd Kahn and Salant
               Corporation. *

10.39          Letter Agreement, dated July 20,                  Exhibit 10.47 to Quarterly Report on
               1998, amending the Employment                     Form 10-Q for the quarter ended
               Agreement, dated March 20, 1997,                  October 3, 1998.
               between Jerald s. Politzer and
               Salant Corporation. *

10.40          Letter Agreement, dated                           Exhibit 10.48 to Current Report on
               November 30, 1998, by and between                 Form 8-K dated November 30, 1998.
               Salant Corporation and The CIT
               Group/Commercial Services, Inc.

10.41          Letter Agreement, dated                           Exhibit 10.49 to Current Report on
               December 4, 1998, by and between                  Form 8-K dated November 30, 1998.
               Salant Corporation and The CIT
               Group/Commercial Services, Inc.

10.42          Ratification and Amendment                        Exhibit 10.50 to Current Report on
               Agreement, dated as of December 29,               Form 8-K dated December 29, 1998.
               1998, by and between Salant
               Corporation and The CIT Group/Commercial
               Services, Inc.

10.43          Agreement between Salant                          Exhibit 99.4 to Current Report on
               Corporation and Pension Benefit                   Form 8-K dated April 30, 1999.
               Guaranty Corporation, dated
               March 24, 1999.

10.44          Amended and Restated Revolving                    Exhibit 10.43 to Form 10-Q, dated
               Credit and Security Agreement,                    May 17, 1999.
               dated May 11, 1999.

10.45          Employment Agreement, dated                       Exhibit 10.45 to Annual Report on
               February 1, 1999, between                         Form 10-K for fiscal year 1999.
               Awadhesh Sinha and Salant
               Corporation. *

10.46          Employment Agreement, dated as                    Exhibit 10.46 to Annual Report on
               of May 17, 1999, between Michael                  Form 10-K for fiscal year 1999.
               Setola and Salant Corporation. *

10.47          Letter Agreement, dated July 1, 1999,             Exhibit 10.47 to Annual Report on
               amending the Employment Agreement,                Form 10-K for fiscal year 1999.
               dated February 1, 1999, between
               Awadhesh Sinha and Salant
               Corporation. *

10.48          Salant Corporation 1999 Stock Award               Exhibit A to Salant Corporation
               Incentive Plan.                                   Definitive Proxy Statement on
                                                                 Schedule 14(a)dated April 14, 2000.

10.49          Letter Agreement, dated                           Exhibit 10.29 to Quarterly Report on
               March 28, 2001, amending the                      Form 10-Q for the quarter ended
               Employment Agreement,                             dated March 31, 2001.
               February 1, 1999, as amended
               July 1, 1999, between Awadhesh K.
               Sinha and Salant Corporation. *


10.49          Asset Purchase Agreement dated as                 Exhibit 10.1 to Current Report on
               of October 15, 2001 by and between                on Form 8-K dated January 4, 2002.
               Salant Holding Corporation, Axis
               Clothing Corporation and
               Richard Solomon.

10.50          Second Amended and Restated Revolving
               Credit and Security Agreement, dated
               November 30, 2001.

10.52          Employment Agreement, dated
               August 24,1999, between
               Howard Posner and Salant
               Corporation. *

10.53          Employment Agreement, dated
               March 13, 2000, between
               William O. Manzer and Salant
               Corporation. *

10.54          Employment Agreement, dated
               August 24, 1999, between
               Jerry Kwiatkowski and Salant
               Corporation. *

21             List of Subsidiaries of the Company
</TABLE>


* constitutes a management contract or compensatory plan or arrangement.


<PAGE>


EXHIBIT 21


                         SUBSIDIARIES OF THE REGISTRANT


Birdhill, Limited, a Hong Kong corporation

Carrizo Manufacturing Co., S.A. de C.V., a Mexican corporation

Clantexport, Inc., a New York corporation

Denton Mills, Inc., a Delaware corporation

JJ. Farmer Clothing, Inc., a Canadian corporation

Frost Bros. Enterprises, Inc., a Texas corporation

Manhattan Industries, Inc., a Delaware corporation

Manhattan Industries, Inc., a New York corporation

Manhattan Industries (Far East) Limited, a Hong Kong corporation

Maquiladora Sur S.A. de C.V., a Mexican corporation

Salant Canada, Inc., a Canadian corporation

Salant Caribbean, S.A., a Guatemalan Corporation

Salant Holding Corporation, a Delaware corporation

SLT Sourcing, Inc., a New York corporation

Vera Licensing, Inc., a Nevada corporation

Vera Linen Manufacturing, Inc., a Delaware corporation