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 30, 2000

                                       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 23, 2001,  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 $10,897,507.  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 2001 Annual Meeting of  Stockholders  is
incorporated by reference in Part III hereof.


<PAGE>


                                TABLE OF CONTENTS




PART I
     Item 1.   Business
     Item 2.   Properties
     Item 3.   Legal Proceedings
     Item 4.   Submission of Matters to a Vote of Security Holders

PART II

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

PART III

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

PART IV

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

SIGNATURES


<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 and specialty stores, and for a portion of 1999 made limited sales of
certain products to national chains, major discounters and mass volume retailers
throughout  the United  States.  In December  1998,  the Company  determined  to
discontinue  and sell its  Salant  Children's  Apparel  Group  (the  "Children's
Group"),   which  manufactured  and  marketed  blanket  sleepers,   pajamas  and
underwear. Also at that time, the Company decided to sell or close its non-Perry
Ellis  menswear  businesses  in order to focus on the Perry Ellis brand.  During
1999,  the  Company  substantially  completed  the process of closing or selling
these  businesses.  (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 consummated on May 11, 1999 (the "Effective Date").

In  accordance  with the Plan,  Salant's  focus is  primarily on its Perry Ellis
men's apparel business and, as a result, Salant has exited its other businesses,
including its Children's Group and non-Perry Ellis menswear  divisions.  To that
end, Salant has sold its John Henry and Manhattan  businesses.  These businesses
included the John Henry,  Manhattan  and Lady  Manhattan  trade names,  the John
Henry and Manhattan  dress shirt  inventory,  the leasehold  interest in a dress
shirt facility located in Valle Hermosa,  Mexico,  and the equipment  located at
the Valle  Hermosa  facility  and at  Salant's  facility  located in  Andalusia,
Alabama.  Salant  has also sold its  Children's  Group  business.  This sale was
primarily for inventory  related to the  Children's  Group  business and the Dr.
Denton trademark.

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.
The Plan was  approved by all of the holders of Senior Notes that voted and over
96% of the holders of Salant's old common stock that voted.

Salant operates its Perry Ellis  businesses under certain  licensing  agreements
(the "Perry Ellis Licenses") between Salant and Perry Ellis International,  Inc.
("PEI").  During the 1998 Case, Supreme  International  Corporation  ("Supreme")
entered  into  discussions  with PEI to  acquire  PEI and,  thereafter,  Supreme
acquired PEI. Prior to the hearing on the confirmation of the Plan,  Supreme (in
its own  capacity  and on behalf  of PEI  (collectively,  referred  to herein as
"Supreme-PEI"))  filed an objection to the confirmation.  In connection with the
confirmation  of the Plan,  Salant and  Supreme-PEI  settled and resolved  their
differences  and the material terms of such  settlement were set forth in a term
sheet (the "Term  Sheet")  attached to and  incorporated  into the  Confirmation
Order (the "PEI Settlement").

The PEI Settlement. The following is a summary of the material provisions of the
Term  Sheet  setting  forth  the  terms  of the PEI  Settlement.  The  following
description  is qualified in its entirety by the  provisions  of the Term Sheet.
The PEI Settlement  provided that: (i) Salant would return to PEI the license to
sell Perry Ellis  products in Puerto Rico,  the U.S.  Virgin  Islands,  Guam and
Canada  (Salant  retained  the right to sell its  existing  inventory  in Canada
through  January 31, 2000);  (ii) the royalty rate due PEI under  Salant's Perry
Ellis  Portfolio  pants license with respect to regular price sales in excess of
$15.0  million  annually  would be increased  to 5%; (iii) Salant would  provide
Supreme-PEI  with the  option  to take over any real  estate  lease for a retail
store that Salant intends to close;  (iv) Salant would assign to Supreme-PEI its
sublicense with Aris Industries, Inc. for the manufacture, sale and distribution
of  the  Perry  Ellis  America  brand  sportswear  and,   depending  on  certain
circumstances,  Salant would receive certain royalty  payments from  Supreme-PEI
through the year 2005;  (v) Salant  would pay PEI its  pre-petition  invoices of
$616,844 and post-petition invoices of $56,954 on the later of (a) the Effective
Date of the  Plan or (b)  the  due  date  with  respect  to such  amounts;  (vi)
Supreme-PEI  (a) agreed and  acknowledged  that the sales of businesses  made by
Salant  during  the 1998  Case did not  violate  the  terms of the  Perry  Ellis
Licenses and did not give rise to the  termination  of the Perry Ellis  Licenses
and (b) consented to the change of control  arising from the  conversion of debt
into equity under the Plan and acknowledged  that such change of control did not
give  rise to any  right to  terminate  the  Perry  Ellis  Licenses;  and  (vii)
Supreme-PEI withdrew with prejudice,  its objection to confirmation of the Plan,
and supported confirmation of the Plan.

Men's  Apparel.  In fiscal 2000,  the Company's  ongoing  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 and a limited amount of private label products.

Retail Outlet Stores.  The retail outlet stores business of the Company 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 2000,  the Company  operated 36 Perry Ellis
outlet stores.

Significant Customers. In 2000 and 1999 approximately 19% of the Company's sales
were made to Federated  Department Stores, Inc.  ("Federated") and approximately
18% of the Company's sales were made to Dillards Corporation ("Dillards").  Also
in 2000 and 1999,  approximately 17% and 16% of the Company's sales were made to
the May Company  ("May"),  respectively and  approximately  13% of the Company's
sales were made to Marmaxx  Corporation  ("Marmaxx")  in 2000 and 1999.  In 1998
approximately  20% of the Company's  sales were made to Sears Roebuck & Company,
and  approximately  14% of the Company's  sales were made to Federated.  Also in
1998,  approximately  11% of the  Company's  sales  were  made to  Dillards  and
approximately 10% of the Company's sales were made to Marmaxx.

No other customer  accounted for more than 10% of the sales during 1998, 1999 or
2000.

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  97.9% of the  Company's net sales for 2000 were  attributable  to
products  sold under Company owned or licensed  designer  trademarks,  primarily
PERRY  ELLIS  and  PORTFOLIO  BY  PERRY  ELLIS   trademarks  (the  "Perry  Ellis
Trademarks");  these products are sold through leading  department and specialty
stores.  The balance was attributable to products sold under retailers'  private
labels.

In January 2001, the Company  purchased the assets and trademarks of Tricots St.
Raphael,  Inc. ("Tricot").  Tricot designs,  produces and markets men's designer
knitwear and sweaters for better department and specialty stores.

Trademarks  Licensed to the Company.  The Perry Ellis Trademarks are licensed to
the Company  under the Perry Ellis  Licenses  with 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.  The  Company  also had rights of first  refusal
worldwide  for  certain  new  licenses  granted  by PEI for  men's  apparel  and
accessories  through  February  1, 2001.  On January 28,  1999,  PEI and Supreme
announced that they had entered into a definitive  agreement under which Supreme
would  acquire  for cash all of the  stock of PEI for $75  million.  On April 7,
1999,  Supreme  completed the  acquisition of PEI and became  Salant's  licensor
under the Perry Ellis Licenses.

In the second quarter of 2000, the Company  entered into an agreement with Hartz
& Company,  Inc.  ("Hartz") to design,  produce and  distribute  sportswear  and
furnishings for Hartz's  exclusive  Tallia brand. No sales for this license were
recorded  in 2000,  however  the  Company  did  incur  expenses  related  to the
development of the spring 2001 line.

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
may  receive  input from the  Company's  licensors  on  general  themes or color
palettes.

During  2000,  approximately  6.0% 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 2000,  approximately 22.6% of the Company's foreign
production was manufactured in Guatemala,  approximately  21.6% was manufactured
in Hong Kong,  approximately  20.4% was manufactured in China and  approximately
15.3% was manufactured in the Dominican Republic.

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 2000, two suppliers  accounted for more than 10%, on an
individual basis, 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 2000, the Company employed 618 persons, of whom 187
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.  Pursuant to the business plan implemented in connection with
the Plan, the Company no longer engages in  manufacturing  and has closed all of
its distribution facilities,  except for its Winnsboro, South Carolina facility,
which is 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 leases approximately 97,000 square feet of
combined office, design and showroom space. As of the end of 2000, the Company's
Stores  division  operated 36 retail  outlet  stores,  comprising  approximately
88,000 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.

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. In addition, the Company notes the following legal proceedings.

    1. Bankruptcy Case. On the Filing Date,  Salant filed a voluntary  petition
for  relief  under  chapter  11 of the  Bankruptcy  Code  in the  United  States
Bankruptcy  Court for the Southern  District of New York.  The Company filed its
Plan on the Filing Date and the Plan was  confirmed by the  Bankruptcy  Court on
April 16, 1999. The Plan was consummated on the Effective Date. The 1998 Case is
currently  pending under the caption In re Salant  Corporation,  Chapter 11 Case
No. 98-10107 (CB). All pre-Filing Date  non-disputed  and allowed claims against
Salant have been or will be satisfied  pursuant to the terms of the Plan. Salant
has  filed,  and  expects  to  continue  to  file,  objections  to all  disputed
pre-Filing Date claims asserted against Salant in the 1998 Case.

     2.  Declaratory   Judgement  Action.  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.

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

During the fourth quarter of 2000, 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 (old and new) for each
quarter of 2000 and 1999 are set forth below.  The price of the old common stock
is  reflected  for the first two  quarters  of 1999,  while the price of the new
common stock is  reflected  in the third and fourth  quarters of 1999 and all of
2000.  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 30, 2000, the Company was prohibited from paying cash
dividends by reason of, among other things, these provisions.

          High and Low Sale Prices Per Share of the New Common Stock *

                 Quarter              High                Low

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

                 1999
                 Fourth               $4.250              $1.060
                 Third                 6.500               4.120

          High and Low Sale Pricese Per Share of the Old Common Stock *

                 Quarter              High                 Low

                 1999
                 Second               $0.310              $0.125
                 First                 0.200               0.046

*  The  Company's  new  common  stock  was  issued  in   conjunction   with  the
restructuring  of the Company's debt pursuant to the Plan on the Effective Date,
at which time the Company's old common stock was cancelled.  Shareholders of the
old common stock  received  .03337  shares of new common stock for each share of
the old common stock. No adjustment has been made to the price of the old common
stock reflected above. Although the Effective Date of the Plan was May 11, 1999,
trading of the  Company's  new common stock did not occur until August 11, 1999,
therefore  no prices are  reflected  for the second  quarter of 1999 for the new
common  stock.  See  Note  1 -  Financial  Reorganization  to  the  Consolidated
Financial Statements.

On March 23,  2001 there were 968  holders of record of shares of common  stock,
and the closing market price was $3.25.

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


<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 January 1, 2000 and
December  30,  2000 and for each of the fiscal  years in the three  year  period
ended  December  30,  2000 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 1996 through 1998 and statement of  operations  data for fiscal years 1996
and 1997 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. 30,      Jan. 01,     Jan. 02,     Jan. 03,     Dec. 28,
                                                           2000          2000         1999        1998         1996

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

For The Year Ended:
  Continuing Operations:
<S>                                                    <C>           <C>         <C>         <C>           <C>
    Net sales                                          $208,303      $248,730    $300,586    $ 347,667     $ 371,958

    Restructuring costs (a)                                 629       (4,039)     (24,825)      (2,066)     (11,730)

    Income/(loss) from continuing operations             12,711       (2,148)     (56,775)      (8,394)     (12,652)

    Discontinued Operations:
      Income/(loss) from operations, net of income taxes    569       (1,955)     (10,163)   (10,464)        3,329
      Loss on disposal, net of income taxes                   -             -      (5,724)      (1,330)            -

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

    Net income/(loss)(a)                                 13,280        20,600     (72,662)     (18,088)      (9,323)

    Pro forma basic and diluted earnings/(loss) per share:
    Earnings/(loss) per share from continuing
     operations before extraordinary gain (a)             $1.28       $(0.21)      $(5.68)$      (0.84)    $  (1.26)

    Earnings/(loss) per share from discontinued
     operations                                             .06        (0.20)       (1.59)       (1.18)        0.33
    Earnings per share from extraordinary gain                -          2.47            -         0.21            -
    Pro forma basic and diluted earnings/(loss) per share (a)1.34        2.06       (7.27)       (1.81)       (0.93)


    Cash dividends per share                                  -             -            -            -            -

At Year End:
  Current assets                                       $102,859       $93,331     $149,697    $147,631      $149,476
  Total assets                                          130,548       121,803      176,129      228,583      231,717

  Current liabilities (c)                                27,533        32,069      201,766      180,898       56,032

  Long-term debt  (c)                                         -             -            -            -      106,231

  Deferred liabilities                                    5,642         4,133        5,273        5,382        8,863
  Working capital/(deficiency)                           75,326        61,262     (52,069)     (33,267)       93,444
  Current ratio                                           3.7:1         2.9:1        0.7:1        0.8:1        2.7:1

  Shareholders' equity / (deficiency)                   $97,373       $85,601    $(30,910)      $42,303      $60,591
  Book value per share                                    $9.83         $8.65      $(2.04)        $2.79        $4.01
  Number of shares outstanding                            9,901         9,901       15,171       15,171       15,094
  Pro forma Book value per share                              -             -      $(3.09)        $4.23        $6.06
  Pro forma number of shares outstanding                      -             -       10,000       10,000       10,000
</TABLE>


      (a)Includes,  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.  For the year ended
     December 28, 1996, a provision of $11,730  ($1.17 per pro forma share;  tax
     benefit not available) for restructuring  costs principally  related to (i)
     the write-off of goodwill and the  write-down of other assets for a product
     line which has been put up for sale,  (ii) the write-off of certain  assets
     and  accrual for future  royalties  for a licensed  product  line and (iii)
     employee  costs  related  to  closing  certain  facilities.  See  Note 3. -
     Restructuring Costs to the Consolidated Financial Statements for additional
     discussion regarding years 1998-2000.

(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 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 reflected as a current
     liability,  respectively.  See Note 1. -  Financial  Reorganization  to the
     Consolidated Financial Statements.



<PAGE>


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

Overview

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 fiscal  2000,  the
Company's ongoing business was primarily comprised of Perry Ellis products.  The
Company markets accessories,  dress shirts,  slacks and sportswear to department
stores and better specialty stores primarily under the PERRY ELLIS and PORTFOLIO
BY PERRY ELLIS trademarks.

Results of Operations

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 $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

In fiscal  2000,  the  Company's  income from  continuing  operations  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, Debt Restructuring Costs, Restructuring Charges, Discontinued
    Operations, and Extraordinary Gain

Earnings before  interest,  taxes,  depreciation,  amortization,  reorganization
costs, debt restructuring 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 operations, which is available for debt service 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.

   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.

  Income / Loss from Discontinued Operations

In fiscal  2000,  the Company  recorded  income of $0.6  million  related to the
discontinuance  of the 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.

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.

  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.


Fiscal 1999 Compared with Fiscal 1998

   Net Sales

In fiscal 1999, net sales of $248.4 million were $52.2 million,  or 17.4%,  less
than net sales of $300.6 million in fiscal 1998. 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 $112.7  million in
fiscal 1998, a decrease of $68.3 million,  or 60.6%. Net sales for the Company's
ongoing  Perry Ellis and private  label  businesses  for fiscal 1999 were $203.9
million,  an increase of $16.0 million,  or 8.5%,  over fiscal 1998 net sales of
$187.9 million.  Of the increase,  net sales of the Company's Perry Ellis retail
outlet  stores (28 stores in fiscal 1999  compared to 20 stores in fiscal  1998)
increased  $3.4  million,  or 25.0%,  net sales of Perry Ellis men's  apparel at
wholesale  increased  $12.4  million,  or 7.5%,  and net sales of the  Company's
private label accessories business increased $0.2 million, or 2.1%.

  Gross Profit

In fiscal 1999,  gross profit of $56.0  million was $6.4 million less than gross
profit of $62.4 million in fiscal 1998. Gross profit margin increased from 20.8%
in fiscal 1998 to 22.5% in fiscal 1999.  Gross profit for the Company's  ongoing
Perry Ellis and private label businesses  increased to $57.5 million,  or 28.2%,
in fiscal 1999 compared to $51.8 million, or 27.6%, in fiscal 1998. Gross profit
for the non-Perry Ellis  businesses  exited by the Company in fiscal 1999, noted
above,  was $(1.5) million,  or (3.5)%,  compared to $10.6 million,  or 9.4%, in
fiscal 1998.  The decrease  resulted from  markdowns  required to dispose of the
inventories of these businesses.

   Selling, General and Administrative Expenses

Selling,  general and administrative expenses (S,G&A) for fiscal 1999 were $54.9
million,  or 22.1% of net  sales,  compared  to $72.0  million,  or 23.9% of net
sales,  in fiscal 1998, a decrease of $17.1  million,  or 23.7%.  As part of the
Company's  restructuring noted above, headcount in S,G&A was reduced from 525 in
fiscal  1998 to 400 in fiscal  1999,  resulting  in savings  of $8.3  million in
salaries and related benefits. In addition,  the Company realized savings due to
the reduced overhead  associated with the  reorganization of the Company,  along
with the reduction of consulting fees.

   Royalty Income

Royalty income decreased $3.4 million,  or 64.2%, to $1.9 million in fiscal 1999
from $5.3 million in fiscal 1998.  The decrease in royalties was due to the sale
of the John Henry and Manhattan  trademarks,  which  resulted in royalty  income
from these  trademarks for only the first quarter of 1999 versus the entire year
of 1998.

   Provision for Restructuring

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.

At January  1, 2000 the  Company  had a building  in  Andalusia,  Alabama  still
available  for sale.  Additional  costs of $0.1  million  were  anticipated  and
accrued due to holding the Andalusia  facility and additional  employee  related
expenses of $0.2 million were accrued and  anticipated  for 2000. The additional
employee related expenses are primarily related to increased insurance costs for
closed  facilities.  These additional costs were offset by the favorable results
of  settlements of royalties and other  restructuring  costs of $0.1 million and
$0.2 million, respectively.

In fiscal 1998,  the Company  recorded a provision  for  restructuring  of $24.8
million, also related to the Company's exit from its non-Perry Ellis businesses.
The  provision  included  $16.2  million  for the loss on sale of the  Company's
Manhattan and John Henry trademarks,  goodwill and related operating assets. The
provision also included (i) $6.3 million for write downs of property,  plant and
equipment of the Company's manufacturing,  distribution and office facilities to
be disposed of as part of its restructuring, (ii) $2.9 million for the write off
of other assets,  severance  costs,  lease  termination and other  restructuring
costs, and (iii) an offset of $0.6 million relating to adjustments of previously
recorded  restructuring  reserves and the gain on sale of a facility in Thomson,
Georgia.

   Interest Expense, Net

For fiscal 1999, net interest expense was $0.4 million compared to $13.9 million
in fiscal 1998.  The decrease  resulted  primarily from the conversion of $104.9
million aggregate  principal face amount of Senior Notes into equity, as part of
the  Company's  restructuring  in  fiscal  1999.  In  addition,  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  1999  of  $45.2   million,   has
significantly  reduced the Company's  borrowing needs under its credit facility.
At  January 1, 2000 there were no  borrowings  outstanding  under the  Company's
credit facility, compared to $38.5 million at January 2, 1999.

   Loss from Continuing Operations

In fiscal 1999, the Company's loss from continuing  operations was $2.1 million,
or $0.21 per pro forma share,  compared to a loss of $56.8 million, or $5.68 per
pro forma share, in fiscal 1998.

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

Earnings before  interest,  taxes,  depreciation,  amortization,  reorganization
costs, debt restructuring costs, restructuring charges,  discontinued operations
and  extraordinary  gain was $8.6  million  (3.5% of net sales) in fiscal  1999,
compared to $3.3 million (1.1% of net sales) in fiscal 1998, an increase of $5.3
million,  or  160.6%.  The  Company  believes  this  information  is  helpful in
understanding  cash flow from operations which is available for debt service 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.

   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.


  Loss from Discontinued Operations

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.

In fiscal 1998, the Company recorded a charge of $15.9 million, also relating to
the discontinuance of the Children's Group. Of the $15.9 million,  $10.2 million
related  to  operating  losses  of the  Children's  Group  prior  to the date of
discontinuance,  and $5.7 million represented  estimated future operating losses
and the estimated loss on the sale of the business.  The $5.7 million  consisted
of asset write-offs of $2.9 million, estimated losses from operations during the
phase out period of $1.6 million,  severance pay of $1.5 million and royalty and
lease  payments  of $1.5  million,  offset by $1.8  million  for the sale of the
Company's Dr. Denton trademark.

The  Children's  Group had net sales of $5.5 million and $42.8 million in fiscal
1999 and 1998, respectively.

  Net Income/(Loss)

Net income  for fiscal  1999 was $20.6  million,  or $2.06 per pro forma  share,
compared to a net loss of $72.7 million, or $7.27 per pro forma share for fiscal
1998.  In addition to the items noted above,  the  improvement  was due to lower
chapter 11 reorganization costs ($.5 million in 1999 as compared to $3.2 million
in 1998) and a debt restructuring charge of $8.6 million recorded in 1998.

Liquidity and Capital Resources

Upon  commencement of the 1998 Case, Salant filed a motion seeking the authority
of the Bankruptcy  Court to enter into a revolving  credit facility with The CIT
Group/Commercial  Services,  Inc.  ("CIT"),  Salant's  existing  working capital
lender  pursuant to and in  accordance  with the terms of the  Ratification  and
Amendment  Agreement,  dated as of December  29, 1998 (the  "Amendment")  which,
together  with  related  documents  are  referred to as the "CIT DIP  Facility,"
effective  as of the Filing Date,  which would  replace the  Company's  existing
working capital facility under its then existing credit  agreement.  On December
29, 1998, the Bankruptcy Court approved the CIT DIP Facility on an interim basis
and on January 19, 1999 the Bankruptcy  Court approved the CIT DIP Facility on a
final basis.

On May 11, 1999,  the  effective  date of the Plan,  the Company  entered into a
syndicated  revolving credit facility (the "Credit Agreement") with CIT pursuant
to and in  accordance  with the terms of a commitment  letter dated  December 7,
1998, which replaced the CIT DIP Facility described above.

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 $35  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.

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, maximum pre-tax losses/minimum pre-tax
income and minimum interest coverage ratios.  The Company was in compliance with
all applicable covenants at December 30, 2000.

Pursuant to the Credit  Agreement,  the Company  will pay or paid the  following
fees: (i) a documentary  letter of credit fee of 1/8 of 1.0% on issuance and 1/8
of 1.0% on  negotiation;  (ii) a standby  letter of credit fee of 1.0% per annum
plus bank charges; (iii) a commitment fee of $325 thousand;  (iv) an unused line
fee of .25%;  (v) an agency fee of $100 thousand  (only for the second and third
years of the term of the Credit Agreement);  (vi) a collateral management fee of
$8,333 per month; and (vii) a field exam fee of $750 per day plus  out-of-pocket
expenses.

At the end of fiscal 2000, there were no direct borrowings outstanding under the
Credit  Agreement.  Letters of credit  outstanding  were $30.0  million  and the
Company  had unused  availability,  based on  outstanding  letters of credit and
existing  collateral,  of $21.7 million. In addition to the unused availability,
the  Company  had  approximately  $34.7  million of cash  available  to fund its
operations.  At the  end  of  fiscal  1999,  there  were  no  direct  borrowings
outstanding and letters of credit  outstanding  under the Credit  Agreement were
$30.1  million,  at which  time the  Company  had unused  availability  of $16.5
million. In addition to the unused  availability,  the Company had approximately
$30.1 million of cash available to fund its operations.  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.  During fiscal 1999, the maximum aggregate amount
of direct borrowings and letters of credit outstanding at any one time was $66.9
million, at which time the Company had unused availability of $13.0 million.

The  Company's  cash provided by operating  activities  for fiscal 2000 was $8.4
million, which primarily reflects (i) income from continuing operations of $12.7
million,  (ii) an  increase  in  accounts  payable  of $2.7  million,  and (iii)
non-cash charges, such as depreciation and amortization of $ 4.6 million.  These
items were offset by an increase in  inventory  of $3.6  million,  a decrease in
liabilities  subject  to  compromise  of $3.0  million,  a  decrease  in accrued
liabilities  of  $2.4  million  and a  decrease  in  the  reserve  for  business
restructuring of $1.2 million.

Cash used by  investing  activities  for  fiscal  2000 was $3.8  million,  which
reflects  $1.9  million  of  capital  expenditures  and  $1.9  million  for  the
installation  of store  fixtures in department  stores.  During fiscal 2001, the
Company plans to make capital  expenditures of approximately $4.1 million and to
spend an  additional  $1.1  million for the  installation  of store  fixtures in
department stores.

New Accounting Standards

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Statement
of Financial  Accounting  Standards  (SFAS) No. 133,  Accounting  for Derivative
Instruments  and Hedging  Activities,  which is  effective  for all fiscal years
beginning  after June 15, 1999.  SFAS 133  establishes  accounting and reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other contracts and for hedging activities.  Under SFAS 133, certain
contracts  that  were  not  formerly  considered  derivatives  may now  meet the
definition  of a  derivative.  The  Company  adopted  SFAS 133  effective  as of
December 31, 2000. Management does not expect the adoption of SFAS 133 to have a
significant  impact on the  financial  position or results of  operations of the
Company because the Company does not have significant derivative activity.

Seasonality

Although the Company  typically  introduces  and  withdraws  various  individual
products  throughout  the year,  its principal  products are organized  into the
customary  retail  Spring,  Transition,  Fall and Holiday  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  20,  2001,  the  Company's  backlog  of  orders  was
approximately  $44.6 million,  which was 6.4% more than the backlog of orders of
approximately $41.9 million that existed at March 20, 2000.

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.  During the second quarter of 2000, the Company  entered
into a licensing  agreement with Hartz to design,  produce and distribute  men's
sportswear and  furnishings  for Hartz's  exclusive  Tallia brand.  In the first
quarter of 2001,  the Company  purchased  the assets and  trademarks  of Tricots
which  designs,  produces,  and markets  better men's  sweaters and  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,
Transition,  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, cannot be determined at this
time.

Dependence  on Contract  Manufacturing.  As of December  30,  2000,  the Company
produced all of its products (in units) through  arrangements  with  independent
contract  manufacturers,  as the  Company  closed its  manufacturing  facilities
during  1999.  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 30, 2000 there were no direct borrowings outstanding under the
Credit Agreement.


<PAGE>


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 30, 2000 and January
1, 2000, and the related  consolidated  statements of operations,  comprehensive
income,  shareholders'  equity/deficiency  and cash  flows for each of the three
years in the period  ended  December  30,  2000.  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 30, 2000 and January 1, 2000,  the results of their  operations  and
their cash flows for each of the three years in the period  ended  December  30,
2000 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 has
entered an order confirming the Plan of Reorganization which became effective on
May 11, 1999.



/s/ Deloitte & Touche LLP


March 9, 2001
New York, New York






<TABLE>
<CAPTION>


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

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

                                                           December 30,            January 1,            January 2,
                                                                   2000                  2000                  1999
                                                     ------------------          ------------         -------------


<S>                                                       <C>                    <C>                     <C>
Net sales                                                 $     208,303          $    248,370            $  300,586
Cost of goods sold                                              152,708               192,391               238,192
                                                         --------------           -----------           -----------


Gross profit                                                     55,595                55,979                62,394

Selling, general and administrative expenses                    (45,188)              (54,909)              (71,999)
Royalty income                                                      750                 1,945                 5,254
Goodwill amortization                                              (519)                 (519)               (1,881)
Other income, net                                                   213                   579                   199
Restructuring reversal/(costs) (Note 3)                             629                (4,039)              (24,825)

Reorganization costs (Note 1)                                        --                  (500)               (3,200)
Debt restructuring costs (Note 10)                                   --                    --                (8,633)
                                                      -----------------       ---------------            ----------
Income/(loss) from continuing operations before interest,
  income taxes and extraordinary gain                            11,480                (1,464)              (42,691)
Interest (income)/expense, net (Notes 9 and 10)                  (1,244)                  439                13,944
                                                          -------------         -------------            ----------


Income/(loss) from continuing operations
  before income taxes and extraordinary gain                     12,724                (1,903)              (56,635)


Income taxes (Note 12)                                               13                   245                   140
                                                         --------------         -------------           ------------


Income/(loss) from continuing operations
  before extraordinary gain                                      12,711                (2,148)              (56,775)
Discontinued operations (Note 17):
  Income/(loss) from discontinued operations                        569                (1,955)              (10,163)

  Loss on disposal                                                   --                     -                (5,724)
Extraordinary gain (Note 4)                                          --                24,703                    --
                                                        ---------------            ----------      ----------------


Net Income/(loss)                                            $   13,280            $   20,600           $   (72,662)
                                                             ==========            ==========           ===========

Basic and diluted income/(loss) per share (Note 2):
  Income/(loss) per share from continuing
    operations before extraordinary gain                  $       1.28           $     (0.21)*     $         (5.68)*
  Income/(loss) per share from discontinued operations          .06                    (0.20)*               (1.59)*
  Extraordinary gain                                                --                  2.47*                    --*
                                                         -------------         --------------     -----------------


Basic and diluted income/(loss) per share                  $      1.34          $       2.06*      $         (7.27)*
                                                           ===========          =============      ===============

Weighted average common stock outstanding                         9,901                 9,998*               10,000*
                                                            ============         =============      ================
</TABLE>



*The year ended January 2, 1999 and January 1, 2000  information is pro-forma --
See Note 2.

                 See Notes to Consolidated Financial Statements


<PAGE>

<TABLE>
<CAPTION>

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


                                                           December 30,            January 1,            January 2,
                                                                   2000                  2000                  1999
                                                     ------------------         -------------          ------------



<S>                                                             <C>                   <C>                  <C>
Net income/(loss)                                               $13,280               $20,600              $(72,662)


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

 Foreign currency translation adjustments                            25                    54                  (203)

 Minimum pension liability adjustments                           (1,533)                1,055                  (348)
                                                               ---------            ---------            -----------

Comprehensive income/(loss)                                     $11,772               $21,709              $(73,213)
                                                                =======               =======              ========



</TABLE>




                 See Notes to Consolidated Financial Statements





<PAGE>

<TABLE>
<CAPTION>

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

                                                                            December 30,                 January 1,
                                                                                    2000                       2000
                                                                      ------------------              -------------

ASSETS
Current assets:
<S>                                                                        <C>                      <C>
  Cash and cash equivalents                                                $      34,683            $        30,116
  Accounts receivable - net of allowance for doubtful accounts
  of $2,625 in 2000  and $2 419 in 1999                                           16,588                     15,956
  Inventories (Notes 5 and 9)                                                     45,283                     41,669

  Prepaid expenses and other current assets                                        6,305                      5,490
  Assets held for sale (Note 3)                                                       --                        100
                                                                       -----------------         ------------------

    Total current assets                                                         102,859                     93,331

Property, plant and equipment, net (Notes 6 and 9)                                13,185                     14,185
Other assets (Notes 7 and 12)                                                     14,504                     14,287
                                                                           -------------           ----------------


                                                                             $   130,548             $      121,803
                                                                             ===========             ==============

LIABILITIES AND SHAREHOLDERS' EQUITY / (DEFICIENCY)
Current liabilities:
  Accounts payable                                                          $     14,798             $       12,097

  Reserve for business restructuring (Note 3)                                      1,070                      2,308
  Liabilities subject to compromise (Notes 1 and 10)                               1,611                      4,604
  Accrued salaries, wages and other liabilities (Note 8)                           9,310                     11,751
  Net liabilities of discontinued operations (Note 17)                               744                      1,309
                                                                         ---------------           ----------------

    Total current liabilities                                                     27,533                     32,069

Deferred liabilities (Note 15)                                                     5,642                      4,133

Commitments and contingencies (Notes 9, 10, 13, 14, 16 and 20)

Shareholders' equity / (deficiency) (Notes 2 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 issuable - 10,000 in 2000 and 1999                                10,000                     10,000
  Additional paid-in capital                                                     206,040                    206,040
  Deficit                                                                       (114,017)                  (127,297)
  Accumulated other comprehensive income/(loss) (Note 18)                         (4,452)                    (2,944)
  Less - treasury stock, at cost - 99 shares in 2000 and 1999                       (198)                      (198)
                                                                         ---------------          -----------------


Total shareholders' equity                                                        97,373                     85,601
                                                                           -------------           ----------------


                                                                             $   130,548             $      121,803
                                                                             ===========             ==============

</TABLE>

                 See Notes to Consolidated Financial Statements


<PAGE>
<TABLE>
<CAPTION>


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

                                                                     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 3, 1998       15,405  $15,405   $107,249  $(75,235)$(3,502)      234   $(1,614)  $42,303


Net loss                                                      (72,662)                              (72,662)
Other Comprehensive Loss                                                 (551)                         (551)
                           -------------------------------------------------------------- ------------------

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
                                 ======  =======   ======== ========= ======= =========   ======   =======

</TABLE>





                 See Notes to Consolidated Financial Statements
<TABLE>
<CAPTION>

                       Salant Corporation and Subsidiaries
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Amounts in thousands)

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

                                                           December 30,            January 1,            January 2,
                                                                   2000                  2000                  1999
                                                    -------------------         -------------        --------------

Cash Flows from Operating Activities
<S>                                                            <C>                  <C>                  <C>
Income/(loss) from continuing operations                       $ 12,711             $  (2,148)           $  (56,775)
Adjustments to reconcile income/(loss) from continuing operations
  to net cash provided by operating activities:
    Depreciation                                                  4,101                 5,027                 7,474
    Amortization of intangibles                                     519                   519                 1,881
    Write-down of fixed assets                                        -                     -                10,931
    Write-down of other assets                                        -                     -                39,952
Changes in operating assets and liabilities:
      Accounts receivable                                          (632)               22,403                 1,276
      Inventories                                                (3,614)               27,921                15,187
      Prepaid expenses and other current assets                    (815)                 (224)               (1,730)
      Assets held for sale                                          100                     -               (28,400)
      Other assets                                                  (14)                 (521)                  301
      Accounts payable                                            2,701                 9,266               (21,058)
      Accrued salaries, wages and other liabilities              (2,441)               (1,209)               (1,222)
      Liabilities subject to compromise                          (2,993)              (19,621)               38,928
      Reserve for business restructuring                         (1,238)               (1,243)                  787
      Deferred liabilities                                          (24)                  (85)               (1,720)
                                                         --------------          ------------          ------------

    Net cash provided by continuing operating activities          8,361                40,085                 5,812
    Cash provided by/(used in) discontinued operations                4                 6,214                (5,257)
                                                        ---------------            ----------          -------------

Net cash provided by operations                                   8,365                46,299                   555
                                                           ------------             ---------         -------------


Cash Flows from Investing Activities
Capital expenditures, net of disposals                           (1,959)               (4,579)               (4,871)
Store fixture expenditures                                       (1,864)               (2,486)               (1,148)
Proceeds from sale of assets                                          -                28,300                     -
                                                        ---------------             ---------     -----------------

Net cash (used in)/provided by investing activities              (3,823)               21,235                (6,019)
                                                            -----------             ---------         -------------


Cash Flows from Financing Activities
Net short-term borrowings/(repayments)                                -               (38,496)                4,696
Purchase of treasury stock                                            -                  (198)                    -
Other, net                                                           25                    54                  (203)
                                                          -------------          ------------         -------------

Net cash (used in)/provided by financing activities                  25               (38,640)                4,493
                                                          -------------             ---------          ------------


Net increase/(decrease) in cash and cash equivalents              4,567                28,894                  (971)

Cash and cash equivalents - beginning of year                    30,116                 1,222                 2,193
                                                             ----------            ----------          ------------

Cash and cash equivalents - end of year                       $  34,683             $  30,116           $     1,222
                                                              =========             =========           ===========

Supplemental  disclosures  of cash flow  information:  Cash paid during the year
for:
   Interest                                                $         93             $   1,054             $   5,441
                                                           ============             =========             =========

   Income taxes                                             $       179           $        90            $      321
                                                            ===========           ===========            ==========

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                          $   (1,533)           $    1,055             $    (348)
</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").

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  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  and are entitled to be paid in full.  The Plan was
approved  by all of the  holders of Senior  Notes that voted and over 96% of the
holders of Salant common stock that voted.

Salant operates its Perry Ellis  businesses under certain  licensing  agreements
(the "Perry Ellis Licenses") between Salant and Perry Ellis International,  Inc.
("PEI").  During the 1998 Case, Supreme  International  Corporation  ("Supreme")
entered  into  discussions  with PEI to  acquire  PEI and,  thereafter,  Supreme
acquired PEI. Prior to the hearing on the confirmation of the Plan,  Supreme (in
its own  capacity  and on behalf  of PEI  (collectively,  referred  to herein as
"Supreme-PEI"))  filed an objection to the confirmation.  In connection with the
confirmation  of the Plan,  Salant and  Supreme-PEI  settled and resolved  their
differences  and the material terms of such  settlement were set forth in a term
sheet (the "Term  Sheet")  attached to and  incorporated  into the  Confirmation
Order (the "PEI Settlement").

The following is a summary of the material  provisions of the Term Sheet setting
forth the terms of the PEI Settlement. The following description is qualified in
its entirety by the provisions of the Term Sheet.  The PEI  Settlement  provided
that: (i) Salant would return to PEI the license to sell Perry Ellis products in
Puerto Rico, the U.S. Virgin Islands, Guam and Canada (Salant retained the right
to sell its existing  inventory in Canada  through  January 31, 2000);  (ii) the
royalty rate due PEI under  Salant's  Perry Ellis  Portfolio  pants license with
respect to regular  price  sales in excess of $15.0  million  annually  would be
increased to 5%; (iii) Salant would provide  Supreme-PEI with the option to take
over any real estate lease for a retail store that Salant intends to close; (iv)
Salant would assign to Supreme-PEI its sublicense with Aris Industries, Inc. for
the  manufacture,  sale  and  distribution  of the  Perry  Ellis  America  brand
sportswear and, depending on certain circumstances, Salant would receive certain
royalty  payments from  Supreme-PEI  through the year 2005; (v) Salant would pay
PEI its pre-petition invoices of $616,844 and post-petition  invoices of $56,954
on the  later of (a) the  Effective  Date of the  Plan or (b) the due date  with
respect to such amounts;  (vi) Supreme-PEI (a) agreed and acknowledged  that the
sales of  businesses  made by Salant  during the 1998 Case did not  violate  the
terms of the Perry Ellis  Licenses and did not give rise to the  termination  of
the Perry Ellis Licenses and (b) consented to the change of control arising from
the  conversion  of debt into equity under the Plan and  acknowledged  that such
change of control  did not give rise to any right to  terminate  the Perry Ellis
Licenses;  and (vii)  Supreme-PEI  withdrew  with  prejudice  its  objection  to
confirmation of the Plan, and supported confirmation of the Plan.

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 CIT. In addition  Salant  accrued the estimated fees of $3,200 in the
1998 fourth quarter 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 of the New Common Stock 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 of the New Common Stock were  distributed  to the
holders  of  Salant's  Old Common  Stock,  in full  satisfaction  of any and all
interests of such holders in Salant.

Accordingly,  under the Plan, as of the Effective  Date,  Salant's  stockholders
immediately  prior to the  Effective  Date,  who at that time  owned 100% of the
outstanding Old Common Stock of Salant,  received,  in the aggregate,  5% of the
issued and outstanding shares of New Common Stock, subject to dilution,  and the
Noteholders received, in the aggregate, 95% of the issued and outstanding shares
of New Common Stock, subject to dilution.  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 (the "Preferred
Stock").  No Preferred  Stock has been issued either in connection with the Plan
or otherwise.

Post-restructuring,  Salant  has  focused  primarily  on its Perry  Ellis  men's
apparel business and, as a result, Salant exited its other businesses, including
its Children's  Group and non-Perry Ellis menswear  divisions.  During 1999, the
Company sold its John Henry and Manhattan businesses.  These businesses included
the John Henry,  Manhattan and Lady  Manhattan  trade names,  the John Henry and
Manhattan  dress  shirt  inventory,  the  leasehold  interest in the dress shirt
facility  located in Valle  Hermosa,  Mexico,  and the equipment  located at the
Valle Hermosa facility and at Salant's  facility located in Andalusia,  Alabama.
During 1999, Salant also sold its Children's Group, which primarily involved the
sale of inventory  related to the  Children's  Group.  As a result of the above,
Salant will now report its business operations as a single segment.

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 Salant  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  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.   As  further  described  in  Note  17,  the  consolidated  financial
statements  and the notes thereto  reflect the  Children's  Group  division as a
discontinued operation. Intercompany balances and transactions are eliminated in
consolidation.

The Company's  principal  business is the  designing,  producing,  importing and
marketing of men's  apparel and as such,  management  believes  that the Company
only  operates  in one  reportable  segment.  The  Company  currently  sells its
products to retailers,  including  department  and specialty  stores,  and for a
portion of 1999 made limited sales of certain products to national chains, major
discounters and mass volume retailers, throughout the United States.

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 2000,
1999 and 1998 fiscal years were comprised of 52 weeks.

Reclassifications

Certain  reclassifications were made to the 1998 and 1999 consolidated financial
statements to conform to the 2000 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 for apparel operations and the retail inventory method
on a first-in, first-out basis for outlet store operations) or market.

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.

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 Statement of Financial  Accounting  Standards  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
are valued based upon the amount the Company plans to pay in accordance with the
Plan. In addition, deferred liabilities have carrying amounts approximating fair
value.

Income/(Loss) Per Share

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.  Common stock equivalents are not considered,  as
the  options  for  the New  Common  Stock  are  anti-dilutive  for  the  periods
presented.

The following is a comparison of basic and diluted income/(loss) per share 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            1998
       Basic and diluted income/(loss) per share:
          From continuing operations                 $(0.18)        $(3.74)
          From discontinued operations                (0.17)         (1.05)
          From extraordinary gain                      2.09           0.00
                                                     -------        -------

       Basic and diluted income/(loss) per share     $ 1.74         $(4.79)
                                                     ======         ======
       Weighted average common stock outstanding     11,830          15,171
                                                     ======          ======

Foreign Currency

The Company had no forward foreign exchange  contracts at the end of fiscal 2000
and 1999.  In fiscal 1998,  the Company  entered into forward  foreign  exchange
contracts, relating to its projected 1999 Mexican peso needs, to fix its cost of
acquiring pesos and diminish the risk of currency fluctuations. Gains and losses
on foreign  currency  contracts  are included in income and offset the gains and
losses on the  underlying  transactions.  On January 2,  1999,  the  outstanding
foreign  currency  contracts had a cost of $4,886 and a year end market value of
$4,851.  Subsequent to year-end 1998 and in connection  with the  restructuring,
the outstanding  foreign currency contracts were sold without a material gain or
loss.

Revenue Recognition

Revenue is recognized at the time  merchandise  is shipped.  Retail outlet store
revenues are recognized at the time of sale.

New Accounting Standards

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Statement
of Financial  Accounting  Standards  (SFAS) No. 133,  Accounting  for Derivative
Instruments  and Hedging  Activities,  which is  effective  for all fiscal years
beginning  after June 15, 1999.  SFAS 133  establishes  accounting and reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other contracts and for hedging activities.  Under SFAS 133, certain
contracts  that  were  not  formerly  considered  derivatives  may now  meet the
definition  of a  derivative.  The  Company  adopted  SFAS 133  effective  as of
December 31, 2000. Management does not expect the adoption of SFAS 133 to have a
significant  impact on the  financial  position or results of  operations of the
Company because the Company does not have significant derivative activity.

Note 3.  Restructuring Costs

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  reserves  related  to
severance and employee  costs of $498,  lease  payments of $89 and the remaining
balance for other  restructuring  costs,  offset by 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 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  reserves  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 buy outs 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    $   (389) $  (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.

In 1998, the Company  recorded a provision for  restructuring of $24,825 related
to its decision to focus primarily on its Perry Ellis men's apparel business. As
a result,  the Company has  substantially  exited its other  businesses.  During
1999, Salant sold its John Henry and Manhattan businesses pursuant to a Purchase
and Sale Agreement dated December 28, 1998 (subject to and subsequently approved
by the Bankruptcy  Court on February 26, 1999).  These  businesses  included the
John Henry,  Manhattan and Lady Manhattan trade names and the related  goodwill,
the  leasehold  interest in a dress  shirt  facility  located in Valle  Hermosa,
Mexico,  and  equipment  located at the Valle  Hermosa  facility and at Salant's
facility  located in  Andalusia,  Alabama.  These assets had a net book value of
$43,184 (consisting of $29,979 for goodwill,  $9,680 for licenses and $3,525 for
fixed assets) and were sold for $27,000,  resulting in a loss of $16,184. At the
end of fiscal  1998 the net  realizable  value of $27,000  for these  assets was
included in the  consolidated  balance sheet as assets held for sale. The assets
not sold in this transaction were also included as assets held for sale and were
recorded at their estimated net realizable value of $1,400 at January 2, 1999.

In addition to the $16,184 charge noted above, the 1998 restructuring  provision
consisted of (i) $6,305 of additional property, plant and equipment write-downs,
(ii) $2,936 for the write off of other assets, severance costs, lease exit costs
and other  restructuring  costs and (iii)  offset by $600 from the  reversal  of
previously  recorded   restructuring   reserves  primarily  resulting  from  the
settlement of liabilities  for less than the carrying amount and the gain on the
sale of a manufacturing and distribution facility.


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 30,            January 1,

                                       2000                  2000

Finished goods                    $  27,078             $  25,385
Work-in-process                      11,009                10,208
Raw materials and supplies            7,196                 6,076
                                -----------           -----------
                                  $  45,283             $  41,669
                                  =========             =========

Finished goods inventory includes in transit merchandise of $2,172 and $1,501 at
December 30, 2000 and January 1, 2000, respectively.


Note 6.  Property, Plant and Equipment

                                                     December 30,     January 1,
                                                             2000           2000

Land and buildings                                     $    6,901     $    6,851
Machinery, equipment, furniture
  and fixtures                                             18,350         16,769
Leasehold improvements                                      5,484          5,290
                                                      -----------    -----------
30,735                                                     28,910
Less accumulated depreciation and amortization             17,550         14,725
                                                       ----------     ----------
                                                        $  13,185      $  14,185
                                                        =========      =========



Note 7.  Other Assets
                                                     December 30,     January 1,
                                                             2000           2000
Excess of cost over net assets acquired,
 net of accumulated amortization of
 $4,635 in 2000 and $4,232 in 1999                     $    6,526     $    6,929

Trademarks and license agreements,
 net of accumulated amortization of
 $1,457 in 2000 and $1,342 in 1999                          3,143          3,258
Other                                                       4,835          4,100
                                                      -----------    -----------
                                                        $  14,504      $  14,287
                                                        =========      =========

In fiscal 1998,  the  unamortized  portion of intangible  assets  related to the
non-Perry Ellis menswear operations  amounting to $39,952 ($29,979  representing
the excess of cost over net assets acquired,  $9,680  representing  licenses and
$293  representing  trademarks)  were  included in the  restructuring  charge as
discussed in Note 3.


Note 8.  Accrued Salaries, Wages and Other Liabilities

                                               December 30,       January 1,
                                                       2000             2000

Accrued salaries and wages                        $   3,483        $   4,247
Accrued pension, retirement and benefits              1,391            2,055

Workers Compensation                                  1,831            2,163

Other accrued liabilities                             2,605            3,286
                                                 ----------       ----------
                                                  $   9,310         $ 11,751
                                                  =========         ========

Note 9.  Financing Agreements

Upon  commencement of the 1998 Case, Salant filed a motion seeking the authority
of the Bankruptcy  Court to enter into a revolving  credit facility with The CIT
Group/Commercial  Services,  Inc.  ("CIT"),  Salant's  existing  working capital
lender  pursuant to and in  accordance  with the terms of the  Ratification  and
Amendment  Agreement,  dated as of December  29, 1998 (the  "Amendment")  which,
together  with  related  documents  are  referred to as the "CIT DIP  Facility,"
effective  as of the Filing Date,  which would  replace the  Company's  existing
working capital facility under its then existing credit  agreement.  On December
29, 1998, the Bankruptcy Court approved the CIT DIP Facility on an interim basis
and on January 19, 1999 the Bankruptcy  Court approved the CIT DIP Facility on a
final basis.

On May 11,  1999,  the  effective  date,  the Company  entered into a syndicated
revolving  credit facility (the "Credit  Agreement") with CIT pursuant to and in
accordance  with the terms of a commitment  letter dated  December 7, 1998 which
replaced the CIT DIP Facility.

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 $35  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.

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,  maximum pre-tax  losses/minimum pre-tax income and
minimum  interest  coverage  ratios.  The  Company  was in  compliance  with all
applicable covenants at December 30, 2000.

Pursuant to the Credit  Agreement,  the Company  paid or will pay the  following
fees: (i) a documentary  letter of credit fee of 1/8 of 1.0% on issuance and 1/8
of 1.0% on  negotiation;  (ii) a standby  letter of credit fee of 1.0% per annum
plus bank charges; (iii) a commitment fee of $325 thousand;  (iv) an unused line
fee of .25%;  (v) an agency fee of $100 thousand  (only for the second and third
years of the term of the Credit Agreement);  (vi) a collateral management fee of
$8,333 per month; and (vii) a field exam fee of $750 per day plus  out-of-pocket
expenses

On December  30, 2000,  there were no direct  borrowings  outstanding  under the
Credit Agreement. Letters of credit outstanding were $30,036 and the Company had
unused  availability,  based on  outstanding  letters  of  credit  and  existing
collateral, of $21,716. In addition to the unused availability,  the Company had
$34,683 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 30, 2000 and January 1, 2000
was 9.4% and 8.7%, 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.  Long-Term Debt

On September 20, 1993, the Company issued  $111,851  principal  amount of Senior
Notes.  The Senior  Notes could be redeemed  at any time prior to  maturity,  in
whole or in part,  at the option of the Company,  at a premium to the  principal
amount thereof plus accrued interest.  The Senior Notes were due on December 31,
1998 and as of January 2, 1999,  $104,879 of  principal  and $14,703 in interest
was  outstanding  and included in liabilities  subject to compromise.  In fiscal
1999  pursuant  to the Plan,  the  Company  converted  the Senior  Notes and the
outstanding  interest  into  equity.  (See  additional  discussion  in Note 1. -
Financial Reorganization)

On April 22, 1998,  the Company  filed a  registration  statement on Form S-4 in
order to facilitate the debt  restructuring of the Senior Notes due December 31,
1998.  Thereafter,  Salant filed amendments to the registration statement on May
10, 1998,  May 26, 1998 and August 31, 1998.  In  consideration  of, among other
things, the significant additional time required to consummate such transactions
and the occurrence of certain events (including, but not limited to, a reduction
in the value of certain of Salant's business units) that caused the Company, its
noteholders and shareholders to seek an alternative debt  restructuring  process
through  chapter 11  proceedings.  In connection with the S-4 filing the Company
incurred  $8,633  relating to the efforts to  restructure  the debt  through the
registration  statement  process,  which  were  charged to expense in the fourth
quarter of 1998.

Note 11. Significant Customers

The Company's  principal  business is the  designing,  producing,  importing and
marketing  of men's  apparel.  The  Company  currently  sells  its  products  to
retailers,  including department and specialty stores, and for a portion of 1999
made limited sales of certain products to national chains, major discounters and
mass volume retailers throughout the United States. The Company also operates 36
retail outlet stores in various parts of the United States.  Foreign operations,
other than sourcing, are not significant.

In 2000 and 1999 approximately 19% of the Company's sales were made to Federated
Department  Stores,  Inc.  ("Federated")  and approximately 18% of the Company's
sales were made to  Dillards  Corporation  ("Dillards").  Also in 2000 and 1999,
approximately  17% and 16% of the  Company's  sales were made to the May Company
("May"),  respectively and approximately 13% of the Company's sales were made to
Marmaxx  Corporation  ("Marmaxx") in 2000 and 1999. In 1998 approximately 20% of
the Company's sales were made to Sears Roebuck & Company and  approximately  14%
of the Company's sales were made to Federated.  Also in 1998,  approximately 11%
of the  Company's  sales  were made to  Dillards  and  approximately  10% of the
Company's sales were made to Marmaxx.  No other customer accounted for more than
10% of sales during 2000, 1999 or 1998.

Note 12.  Income Taxes

The provision for income taxes consists of the following:

               December 30,             January 1,           January 2,
2000                   2000                   1999
Current:
 Federal            $    --                $   (20)             $  (109)
 Foreign                 13                    265                  249
                     ------                -------              -------
                      $  13                 $  245              $   140
                      =====                 ======              =======

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:

                                              2000           1999         1998
                                           ----------      --------     --------


Income tax/(benefit), at 34%              $  4,520      $    (647)    $(19,256)
State tax/(benefit)                            665            (96)      (2,832)
Loss producing no current tax benefit           --            742       22,088
Reversal of valuation allowance             (6,060)            --           --
Tax refunds from prior years                    --            (20)        (109)
Other                                          875             --           --
Foreign taxes                                   13            265          249
                                        ----------     ----------     --------

Income tax provision                     $      13      $     245    $     140
                                         =========      =========    =========


The following are the tax effects of significant  items comprising the Company's
net deferred tax asset:
                                                     December 30,    January 1,
                                                             2000          2000

Deferred tax assets:
 Reserves not currently deductible                       $ 10,365      $ 14,233
 Operating loss carryforwards                              45,872        43,959
 Tax credit carryforwards                                     138           759
 Expenses capitalized into inventory                        2,299         5,019
 Differences between book and tax basis of property         1,241         2,005
                                                       ----------   -----------
                                                         $ 59,915      $ 65,975
                                                         ========     -========

Net deferred tax asset                                   $ 59,915     $  65,975
Valuation allowance                                       (59,915)      (65,975)
                                                          --------    ---------
Net deferred tax asset                                   $     --     $      --
                                                        ==========   ===========

At December 30, 2000, the Company had net operating loss carryforwards  ("NOLs")
for income tax purposes of  approximately  $117,620,  expiring  from 2001 to the
year 2020, 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  $9,700 of
intangible assets recorded in connection with the acquisition.

The Manhattan  Industries  acquisition  and the 1990  bankruptcy  and subsequent
consummation have 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 $117,620 of NOLs reflected above
is the  maximum  the Company may use to offset  future  taxable  income.  Of the
$117,620 of NOLs,  $84,200 is subject to annual usage  limitations under Section
382 of approximately $7,200.

Additionally,  by virtue of the  consummation  of the Plan,  a second  ownership
change under  Section 382 has occurred  during  fiscal  1999.  As a result,  the
utilization  of the NOLs  and tax  credit  carryforwards  could  be  subject  to
additional limitations, which could reduce their use.

In  addition,  at  December  30,  2000,  the Company  had  available  tax credit
carryforwards  of  approximately  $138,  which  expire  between  2001 and  2011.
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 Company also has a non-qualified  supplemental  retirement and death benefit
plan covering certain employees that was terminated during 1998. The funding for
this plan was based on premium costs of related insurance contracts.

The  reconciliation  of the funded  status of the plans at December 30, 2000 and
January 1, 2000 is as follows:

                                                        2000          1999
                                                     ----------    -----------


Change in Projected Benefit Obligation (PBO)
During Measurement Period

PBO, November 30 of previous year                    $  45,555     $  51,151

Service Cost                                               569           760
Interest Cost                                            3,311         3,290
Actuarial (Gain)/Loss                                    1,124        (4,890)
Plan Curtailment                                            --        (2,000)
Benefits Paid                                           (2,809)       (2,756)
                                                      ---------    ---------
PBO, November 30                                     $  47,750     $  45,555
                                                     =========     =========


Change in Plan Assets During the Measurement Period

Plan Assets at Fair Value, November 30
 of previous year                                                  $  48,205
$  45,282
Actual Return on Plan Assets                               795         4,560
Employer Contribution                                    1,753         1,119
Benefits Paid                                           (2,809)       (2,756)
                                                     ---------    ----------
Plan Assets at Fair Value, November 30               $  47,944     $  48,205
                                                     =========     =========



The  reconciliation  of the  Prepaid/(Accrued)  plans at  December  30, 2000 and
January 1, 2000 is as follows:

                                                      2000           1999
                                                      -----          ----

Reconciliation of Prepaid/(Accrued)

Funded Status of the Plan                        $     195         $   2,650
Unrecognized Net (Gain)/Loss                         4,400               155
Unrecognized Prior Service Cost                       (397)             (456)
Unrecognized Net Transition (Asset)/Obligation         151               178
                                                ----------       -----------
Net Amount Recognized                             $  4,349         $   2,527
                                                  ========         =========

Prepaid Benefit Cost                              $  3,123         $   2,227
Accrued Benefit Liability                           (3,108)           (2,501)
Accumulated Other Comprehensive Income               4,334             2,801
                                                 ---------        ----------
Net Amount Recognized                             $  4,349         $   2,527
                                                  ========         =========




Components of Net Periodic Benefit Cost for Fiscal Year
<TABLE>
<CAPTION>

                                                          2000                  1999                  1998
                                                          ----                  ----                  ----

<S>                                                 <C>                   <C>                   <C>
Service Cost                                        $      569            $      760            $    1,000
Interest Cost                                            3,311                 3,290                 3,307
Expected Return of Plan Assets                          (4,026)               (3,707)               (3,427)
Amortization of Unrecognized:
   Net (Gain)/Loss                                         110                   244                   266
   Prior Service Cost                                      (59)                  (79)                 (111)
   Net Transition (Asset)/Obligation                        27                    36                    71
Settlement Gain                                             --                    --                   (92)
Curtailment (Gain)/Loss                                     --                  (299)                  101
                                                 -------------            -----------          -----------
Net Periodic Pension (Income)/Cost                  $      (68)           $      245             $   1,115
                                                    ===========           ==========             =========

Other Comprehensive (Loss)/Income                    $  (1,533)            $   1,055            $     (348)

Accrued Benefit Obligation, November 30               $ 46,715              $ 43,814              $ 46,878

Assumptions used in accounting for defined benefit pension plans are as follows:
</TABLE>
<TABLE>
<CAPTION>

                                                 2000       1999       1998       1998
                                               Qualified  Qualified    Non-     Qualified
                                                 Plans      Plans    Qualified    Plans
                                                                                  Plan

<S>                                              <C>        <C>        <C>        <C>
 Discount rate                                   7.5%       7.5%       6.75%      6.75%
 Rate of increase in compensation levels         5.0%       5.0%        N/A       5.0%
 Expected long-term rate of return on assets     8.5%       8.5%       8.5%       8.5%
</TABLE>


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  nonqualified
supplemental  plan  assets  consisted  of the cash  surrender  value of  certain
insurance contracts.

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
$2,330,  $3,985 and $4,597 in 2000, 1999 and 1998,  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

Salant sponsors the Long Term Savings and Investment  Plan, under which eligible
salaried  employees  may  contribute  up to 15% of  their  annual  compensation,
subject to certain  limitations,  to a money market  mutual fund, a fixed income
fund,  the  Company's  common  stock (in 1999 and 1998) and/or  selected  mutual
funds.  Salant 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 2000, 1999 and 1998 Salant's
aggregate contributions to the Long Term Savings and Investment Plan amounted to
$111, $140 and $198, 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 1998, 1999 and
2000:

<TABLE>
<CAPTION>

                                                                                                 Weighted
                                                                                                  Average
                                                                                                  Exercise
                                                          Shares             Price Range             Price

<S>                            <C>                      <C>               <C>     <C>            <C>
Options outstanding at January 3,1998                   1,343,393         $2.0625-12.875         $3.95
Options granted during 1998                                 10,000               $1.7188         $1.72
Options exercised during 1998                                    0
Options surrendered or canceled during 1998                (87,026)         $2.25-12.875         $5.15
                                                     -------------
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                                   --                 $  --         $ --
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 exercisable at December 30, 2000                   630,961           $2.50-4.125         $4.10
                                                      ============

Options exercisable at January 1, 2000                     406,389          $4.125-5.875         $4.14
                                                      ============
</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 30, 2000 and January 1, 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            12/30/00                           Exercise         12/30/00       Exercise Price
      -----------------------            --------                           ---------        --------       --------------
                                                                              Price
                                                                              -----

<S>         <C>   <C>                          <C>                  <C>           <C>          <C>                   <C>
            $2.5 -$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

                                                       Weighted Average
                                          Number           Remaining        Weighted          Number           Weighted
                                      Outstanding at   Contractual Life      Average      Exercisable at       Average
                                                       ----------------
      Range of Exercise Price             1/1/00                            Exercise          1/1/00        Exercise Price
                                                                              Price

           $4.125-5.875                       914,945               9.43          $4.13       406,389                $4.14

</TABLE>

In summary, as of December 30, 2000, there were 1,111,111 shares of Common Stock
reserved  for the exercise of stock  options and 297,167  shares of Common Stock
reserved for future grants of stock options or awards.

All stock  options are granted at fair market  value of the Common  Stock at the
grant date. The weighted  average fair value of the stock options granted during
2000 and 1999 was $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 2000, 1999 and 1998,  respectively:  risk-free interest rate of 6.00%,
6.00% and 5.16%;  expected dividend yield of 0%, for all years; expected life of
5.25, 5.75 years and 4.46 years; and expected volatility of 98%, 316%, and 106%.
The  outstanding  stock  options at December  30,  2000 have a weighted  average
contractual life of 8.8 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
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation"  (SFAS 123), the Company's pro forma net  income/(loss)  for 2000,
1999 and 1998 would have been $12,338, $16,687 and ($74,069),  respectively. The
Company's  pro-forma net income per-share for fiscal 2000 would have been $1.25.
The  Company's pro forma net  income/(loss)  per share based upon the New Common
Stock for 1999 and 1998 would have been $1.67 and ($7.41), respectively. Because
the SFAS 123 method of accounting has not been applied to options  granted prior
to 1995, the resulting pro forma  compensation cost may not be representative of
that to be expected in future years.





Note 15.  Deferred Liabilities
                               December 30,            January 1,
                                       2000                  2000

Deferred pension obligations        $ 4,334              $  2,801

Deferred rent                         1,294                 1,314
Other deferred liabilities               14                    18
                                 ----------            ----------

                                    $ 5,642               $ 4,133
                                    =======               =======


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 outlet stores contain  provisions for additional  rent
based upon sales.

In  2000,  1999  and  1998,  rental  expense  was  $3,891,  $5,144  and  $7,008,
respectively.  As of December 30, 2000,  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

                           2001      $   4,898
                           2002          4,754
                           2003          4,813
                           2004          4,591
                           2005          3,846
                     Thereafter         22,773

  Total (Not reduced by minimum       $ 45,675
         sublease rentals of $18,432)

(b)      Employment Agreements

The Company has employment agreements with certain executives, which provide for
the  payment  of  compensation  aggregating  approximately  $1,175  in 2001.  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 the 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  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.

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.  For Fiscal 1998,
the Company  recognized a charge of $15,877 reflecting the discontinuance of the
Children's Group. Of the $15,877, $10,163 related to the operations prior to the
date the decision was made to  discontinue  the business and $5,724  represented
estimated future losses during the phase-out period. The $5,724 was comprised of
(i)  write-off  of assets of $2,929,  (ii)  estimated  loss from  operations  of
$1,597, (iii) severance of $1,450 and (iv) royalty and lease payments of $1,498,
offset  by  $1,750  for the sale of the Dr.  Denton  trademark.  No  income  tax
benefits have been allocated to the division.

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
will be collected or paid through the normal course of business. Property, plant
and equipment was written down to its  estimated  net  realizable  value and the
Company has disposed of these assets.

The  Children's  division  results  for 2000,  1999 and 1998 are  summarized  as
follows (no income tax benefits have been allocated to the division):

                                     2000              1999             1998
                                     ----              ----             ----

Net Sales                          $      --        $   5,493         $  42,766
                                   =========        =========        ==========

Net Income/(Loss) from Operations     $  569         $ (1,955)        $ (10,163)
                                      ======         ========         =========

Net  (liabilities)/assets  of  discontinued  operations  in the  2000  and  1999
consolidated balance sheets include:
                                                  2000              1999
                                                  ----              ----

         Prepaids and other                       $   30          $    24
         Assets held for Sale                         --               86
                                                --------         --------

         Assets                                   $   30           $  110
                                                  ------           ------

         Accounts payable                        $    --           $  193
         Accrued liabilities                         224              285
         Reserve for future phase-out losses         550              941
                                                 -------         --------

         Liabilities                              $  774         $  1,419
                                                  ------         --------
         Net (Liabilities)/Assets                 $ (744)        $ (1,309)
                                                  ======         ========

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)


2000

<S>                                                              <C>            <C>               <C>
  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)
                                                                 =======        ========          ========


1998

  Beginning of the year balance                                $      6         $ (3,508)         $ (3,502)
  12 month change                                                  (203)            (348)             (551)
                                                                --------      -----------       -----------
  End of the year balance                                        $ (197)        $ (3,856)         $ (4,053)
                                                                 =======        =========         =========
</TABLE>


Note 19.  Quarterly Financial Information (Unaudited)
<TABLE>
<CAPTION>

                       Fiscal year ended December 30, 2000

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

<S>                                          <C>           <C>           <C>          <C>          <C>
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

                        Fiscal year ended January 1, 2000

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

Net sales                                    $248,370      $50,671       $57,297      $61,820      $78,582
Gross profit                                   55,979       15,267        14,111        9,768       16,833
Net income/(loss)                              20,600        1,859         2,371       22,141       (5,771)
Pro forma diluted earnings/(loss) per share     $2.06        $0.19        $0.24        $2.21        ($0.58)

</TABLE>

Reference is made to Notes 3, 4 and 17  concerning  fourth  quarter  adjustments
during the years ended December 30, 2000 and January 1, 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. In addition, the Company notes the following legal proceedings.

     1. Bankruptcy Case. On the Filing Date,  Salant filed a voluntary  petition
for  relief  under  chapter  11 of the  Bankruptcy  Code  in the  United  States
Bankruptcy  Court for the Southern  District of New York.  The Company filed its
Plan on the Filing Date and the Plan was  confirmed by the  Bankruptcy  Court on
April 16, 1999. The Plan was consummated on the Effective Date. The 1998 Case is
currently  pending under the caption In re Salant  Corporation,  Chapter 11 Case
No. 98-10107 (CB). All pre-Filing Date  non-disputed  and allowed claims against
Salant have been or will be satisfied  pursuant to the terms of the Plan. Salant
has  filed,  and  expects  to  continue  to  file,  objections  to all  disputed
pre-Filing Date claims asserted against Salant in the 1998 Case.

     2.  Declaratory   Judgement  Action.  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.


<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 2001 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 2001 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 2001 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 2001 annual
meeting of shareholders.

                                     PART IV

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



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 Income/(Loss)

         Consolidated Balance Sheets

         Consolidated Statements of Shareholders' Equity/(Deficiency)

         Consolidated Statements of Cash Flows

         Notes to Consolidated Financial Statements

2.  Financial Statement Schedule

The  following  Financial  Statement  Schedule for the years ended  December 30,
2000,  January  1,  2000 and  January  2,  1999 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.


<PAGE>



                       SALANT CORPORATION AND SUBSIDIARIES

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

COLUMN A                             COLUMN B       COLUMN C         COLUMN D        COLUMN E

                                                        (1)             (2)
                                     Balance at     Charged to         Charged to                               Balance
                                      Beginning     Costs and      Other Accounts      Deductions               at End
Description                          of Period       Expenses     -- Describe         -- Describe              of Period
                                    ----------      ---------  ------------------     -----------              ---------

YEAR ENDED DECEMBER 30, 2000:

Accounts receivable allowance
<S>                                      <C>              <C>              <C>            <C>                     <C>
  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

YEAR ENDED JANUARY 2, 1999:

Accounts receivable - allowance
  for doubtful accounts                  $2,094         $2,769            $  --        $2,202 (A)                 $2,661

Reserve for business restructuring     $2,764          $24,825            $  --       $24,038 (B)                 $3,551

</TABLE>



NOTES:

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


<PAGE>


Reports on Form 8-K

The Company did not file any reports on Form 8-K for the quarter ended  December
30, 2000.



<PAGE>

<TABLE>
<CAPTION>

                                    Exhibits

                                                           Incorporation
Number   Description                                       By Reference To

<S>      <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   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.
</TABLE>


21             List of Subsidiaries of the Company


* constitutes a management contract or compensatory plan or arrangement.


<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 28, 2001                                 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 28, 2001.

   Signature                      Title


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

   /s/  Awadhesh  K. Sinha       Chief Financial Officer
        Awadhesh K. Sinha        and Chief Operating Officer
                                 (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

















                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549






                                    EXHIBITS


                                       to


                                    FORM 10-K


                   FOR THE FISCAL YEAR ENDED DECEMBER 30, 2000


<PAGE>

<TABLE>
<CAPTION>

                               SALANT CORPORATION
                                  EXHIBIT INDEX

                                                           Incorporation
Number   Description                                       By Reference To


<S>      <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 SalantCorporation
         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.
</TABLE>

21             List of Subsidiaries of the Company


* 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 Holding Corp., a Delaware corporation

SLT Sourcing, Inc., a New York corporation

Vera Licensing, Inc., a Nevada corporation

Vera Linen Manufacturing, Inc., a Delaware corporation

Salant Caribbean, S.A., a Guatemalan Corporation