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Is Starter finished?
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April 19, 1999: 7:47 p.m. ET
Sports clothing maker files for bankruptcy to block creditors
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NEW YORK (CNNfn) - Sports clothier Starter Corp. could not clear the hurdle with creditors and sought bankruptcy protection Monday.
The New Haven, Conn.-based Starter (STA) filed for Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del. The company listed assets of $118.1 million and liabilities of $120.5 million.
Starter, a licensee of all the major North American professional sports leagues and universities, listed NBA Properties, Major League Baseball Properties, NFL Properties and NHL Enterprises as some of its largest unsecured creditors.
Earlier in the day, the company announced that it had not filed its 1998 annual report "due to the diversion of its resources in an attempt to conclude recent negotiations with a group of equity investors and its current lenders."
Wrapped in Satin
Founded in 1971, Starter was the first company to make satin team jackets.
In the 1997 annual report, David Beckerman, chairman and chief executive officer, attributed the company's problems to a sporting-goods retail consolidation that eliminated hundreds of stores throughout the country.
Beckerman also said royalty and marketing expenses requested by the leagues have increased dramatically in recent years.
"We continue to evaluate our process and the way we conduct our business efforts," Beckerman said in the annual report. "We are looking at ourselves very carefully and objectively."
Beckerman said he expected the company to return to profitability in 12 to 18 months.
Starter closed down 1-1/8 Monday at 1-1/4.
-- from staff and wire reports
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Starter
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