CT-based Starter Corp. has "announced major layoffs and
filed for Chapter 11 bankruptcy protection," according to
Wayne Travers of the NEW HAVEN REGISTER. The company's 20
largest unsecured creditors listed in its filing include
NBAP (owed $15.6M), MLBP ($1.6M), NFLP ($1.2M), and NHLE
($903,000). Other unsecured creditors, with claims ranging
from $170,000 to $700,000, include Fox Broadcasting,
Player's Inc, MSG, Vibe Magazine and Olympia Entertainment
(N.H. REGISTER, 4/20). The filing also includes Cowboys RB
Emmitt Smith, who is owed $250,000. The WALL STREET
JOURNAL's Jacobs & Fatsis report that Starter's filing comes
after "failing to find an investor to help the company
weather a declining market" for league apparel. Starter
attorney Joanne Wills said that the company "had been in
negotiations with a group of investors but defaulted on bank
covenants before a deal for an equity infusion could be
reached." Jacobs & Fatsis write that league execs were
"surprised by the filing," noting that Starter CEO David
Beckerman "told officials late last week that he expected to
find an investor." Whether Starter will be able to
"continue to operate and meet existing deals" to supply
merchandise to pro leagues "isn't clear." Starter shares
"lost nearly half their value" in trading yesterday, falling
$1.125, or 47%, to $1.25 (WALL STREET JOURNAL, 4/20).
