NEW YORK -- USA Classic Inc., which lost $3.5 million in the first quarter ended Feb. 28 and predicted a "substantial loss" in the second quarter ending May 31, filed a Chapter 11 petition to reorganize last week.

The petition, filed at 5 p.m. as Bankruptcy Court was closing, listed assets of $64 million and liabilities of $30 million, including $11 million unsecured, according to Steven H. Newman, counsel to the debtor.

The lawyer would not release any more information and the petition was unavailable. Market reports pegged the filing on a general downturn in the market.

The company, a manufacturer of children's licensed activewear under the B.U.M. Equipment, Everlast and Mighty Mac labels, was attempting to negotiate post-petition financing with its factor, according to market reports. These could not be confirmed.

The loss in the first quarter compares with a profit of $272,000, or 5 cents, the previous year. Sales in the period slipped 32.6 percent, to $10.1 million from $15 million in 1993.

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