NEW YORK--Three apparel manufacturers teamed up to purchase the trade names and marks of Eddie Haggar Limited Inc. for $2.8 million at a Dallas bankruptcy court auction.
The manufacturers--Knight Textile Corp., Saluda, Calif., and Nygard International Ltd. and Twin Dragon Marketing Inc., both of Gardena, Calif.--purchased all trade names except the Eddie Haggar Limited name.
Under the deal approved by the court, Knight Textile and Twin Dragon will use the Palmetto's name on women's and children's apparel. Twin Dragon currently markets children's apparel under the Palmetto's Kids names through a licensing deal with Eddie Haggar Limited.
Knight Textile will also have the right to use the Essentials name, while Nygard International will use the Allison Daley and EHL marks.
The bankruptcy auctioncomes nearly three months after Dallas-based Eddie Haggar Limited filed for Chapter 11 protection on Jan. 24. Gerald P. Buccino, of Buccino & Associates, the firm managing the sportswear firm in Chapter 11, first attempted to sell all assets of the company in one deal, but then decided selling the trademarks separately from the real estate would bring creditors a greater return .
Buccino said the three manufacturers have agreed to license back the trade names to Eddie Haggar Limited to allow the company to sell existing inventory and collect accounts receivables.
As reported, Eddie Haggar Limited continues to ship its spring line through customary distribution channels.
Buccino said Eddie Haggar Limited's remaining assets, including its company name, 150,000-square-foot office building and distribution center in Dallas and 430,000-square-foot office, plant, warehouse and distribution center complex in Hartwell, Ga., continue to be marketed.
When it filed its Chapter 11 petition, Eddie Haggar listed $38.5 million in assets and $48.4 million in liabilities.--Fairchild News Service

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