DALLAS AUCTION SET FOR HAGGAR MARKS

Byline: Rich Wilner

NEW YORK--Eddie Haggar Limited is scheduled to sell its 34 sportswear trademarks at a Dallas bankruptcy court auction Wednesday, and management is expecting the bidding to draw a crowd.
At least five prospective purchasers are scheduled to take part in the auction, which will have an opening bid of $2.5 million, Gerald P. Buccino of Buccino & Associates--the turnaround management firm running the sportswear company in Chapter 11--said on Friday.
All the trademarks--including Allison Daley, Palmetto's and Eddie Haggar--will be sold in one lot.
Eddie Haggar Limited filed for Chapter 11 protection Jan. 24 and said at the time it would seek to find a buyer for its business. An earlier deal, reportedly with Donnkenny, for all of Eddie Haggar's assets--its trademarks, inventory and real estate--fell through.
Buccino said he decided to change his tack and sell the assets individually. While Wednesday's scheduled auction will take care of the trademarks, Buccino said he has received some initial inquiries for the real estate and added that the inventory was being sold to current customers in the normal course of business.
Buccino said the bidders expected at the auction are Knight Industries; Nygard Inc.; Teximpor Inc.; Twin Dragon, maker of the Eddie Haggar children's line, and Eddie Haggar Jr., who is the chairman of the debtor.
In fact, Buccino said, he thought he had a deal with Eddie Haggar Jr. on April 13 to sell the marks for $2 million but was surprised when four other bidders showed up at a court hearing to approve the sale. After two hours at the hearing, Bankruptcy Judge Robert C. McGuire scheduled the April 19 auction.
Buccino said other parties interested in making a bid must have their due diligence completed prior to the hearing. Interest parties should contact Michael Smith, an associate, Buccino added. --Fairchild News Service

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