Indianapolis-based Logo Athletic "was at the brink of
collapse last year, reeling from a continued slump" in sales
of licensed sports clothing nationwide, according to Barb
Albert of the INDIANAPOLIS STAR. The company's "newfound
cash, newly renegotiated debt, and cutbacks in staff and
other expenses" are part of a six-month restructuring
process completed this week. Logo President David Baxter,
on the need to restructure: "It was a very grave situation.
There's no question about it." Albert adds that under the
restructuring, Logo's investors "agreed to pump into" the
company a "'significant' but undisclosed" amount of capital.
Indianapolis Motor Speedway and the Simon family are among
the investors. Logo also renegotiated agreements with pro
sports leagues, key suppliers, bank lenders and customers to
"ease financial burdens." Internally, Logo "trimmed" its
corporate staff by "about" 25 workers to 100. The company
also cut marketing and other expenses and has "reduced" or
"even dropped" some player contracts (INDY STAR, 4/14).
