HAGGAR SEEKS COURT’S APPROVAL TO HIRE BROKER TO SEEK BUYERS
Byline: Rich Wilner
NEW YORK — Eddie Haggar Limited Inc., a manufacturer of moderate-price women’s and junior casual sportswear reorganizing in Chapter 11, will ask a Dallas bankruptcy judge today for permission to hire a business broker to flush out additional suitors.
Eddie Haggar, which filed for bankruptcy court protection Jan. 24, said in court papers at the time that it would seek to sell the business.
Two possible buyers — Donnkenny Apparel, here, and Koret of California, San Francisco — are looking at the company’s books, according to court papers. Fruman Jacobson, counsel to Haggar, said the manufacturer is hoping to deepen the pool of possible purchasers.
Jacobson, of Sonnenschein, Nath & Rosenthal, Chicago, said hiring investment banker Houlihan Lokey Howard & Zukin to rouse other potential bidders would “maximize the proceeds of [the] sale” for creditors.
Until the sale of the five-year-old company is completed, Eddie Haggar is operating and readying its spring line. As reported, it had obtained $15 million in financing from Foothill Capital Corp., a major secured creditor, to finance the spring line.
The highly leveraged business ran into trouble recently when retailers refused to accept fall merchandise that they said was shipped late. The late shipments reflected problems in consolidating an acquisition made last spring, the Palmettos and Essentials divisions of Hartwell Co.
Eddie Haggar Jr., chairman, formed the company bearing his name when he purchased the women’s apparel business from Haggar Apparel Co., now known as Haggar Clothing Co.
At the same time, the U.S. trustee has named a seven-member committee of unsecured creditors. The group — Burlington Industries, The Hartwell Co., Delta Mills, BNY Financial, Reeves Bros., Trim-Pak and Twin Dragon Marketing — has chosen Jenkens & Gilchrist, Dallas, as counsel. — Fairchild News Service