SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 12,1998
TULTEX CORPORATION
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(Exact name of registrant as specified in its charter)
Virginia 1-8016 54-0367896
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(State or other jurisdiction Commission File IRS Employer
of incorporation) Number Identification No.
101 Commonwealth Boulevard, P. O. Box 5191, Martinsville, Virginia 24115
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 540-632-2961
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ITEM 5. OTHER EVENTS.
See the following press release, dated June 12, 1998
announcing the Company's agreement to sell LogoAthletic,
Inc. and LogoAthletic/Headwear, Inc.
FOR IMMEDIATE RELEASE
CONTACT: Suzanne H. Wood, Vice President/CFO, 540-632-2961,
ext. 3034
TULTEX CORPORATION ANNOUNCES AGREEMENT TO SELL LOGOATHLETIC,
INC. AND LOGOATHLETIC/HEADWEAR, INC.
Martinsville, VA (June 12, 1998) - Tultex Corporation
(NYSE:TTX) announced today that it had signed a definitive
agreement to sell substantially all the assets and business
of LogoAthletic, Inc. and LogoAthletic/Headwear, Inc., its
licensed apparel subsidiaries, to TKS Acquisition Inc., a
new company headed by Thomas K. Shine, President and CEO of
LogoAthletic. The new company's investors include Puma AG,
Simon Investors, McDonald & Company Securities, the
Indianapolis Motor Speedway and other private investors.
In exchange for the assets being sold, Tultex expects to
receive cash of approximately $84 million, plus $12.5
million in subordinated notes due five years after the
closing. The cash payment is subject to adjustment for
working capital changes occurring prior to closing. In
addition, additional cash payments may be received if the
new company reaches certain sales targets during the next
two years. As a part of the transaction, Tultex will also
repurchase $6 million of its outstanding preferred stock
owned by investors, including members of the Simon family.
After giving effect to expenses and other negotiated
provisions whose financial effect cannot be determined until
after the closing, Tultex expects to record a loss on the
sale of its licensed apparel subsidiaries.
Charles W. Davies, Jr., President and CEO of Tultex said,
"Our Board of Directors has unanimously approved the sale of
LogoAthletic as a significant and positive strategy to
enable both companies to achieve their best long-term
potential. The sale allows Tultex to reduce its debt by
approximately $78 million, thereby achieving an important
goal of debt reduction for 1998. From this stronger
financial foundation, we will concentrate resources on the
growth of the company's Track Gear(Registered trademark)
(NASCAR-licensing) and Discus Athletic(Registered trademark) brands,
as well as our distributor and traditional activewear businesses.
We expect that LogoAthletic, Inc. will continue as a significant
customer of Tultex fleece and T-shirt products."
Tultex stated that the new company had secured all bank and
equity commitments to complete the purchase and that Tultex
had obtained all necessary consents from its lenders. The
transaction will be completed after the transfers of
licenses from the professional and collegiate leagues and
after other customary consents and approvals are received.
The parties expect the transaction to close in July.
Following the transaction, Tultex will continue to operate
and grow its NASCAR licensed apparel business featuring its
Track Gear brand of racing apparel. As a part of the
transaction, the new company has licensed Tultex to use its
LogoAthletic brand in connection with Track Gear products
and to engage the same sales representatives to sell NASCAR-
licensed products. O. Randolph Rollins, executive vice
president of Tultex who heads up Track Gear, Tultex'
motorsports apparel subsidiary, stated: "Track Gear has
made a major impact on the licensed apparel market for
NASCAR. Continuing the use of the LogoAthletic brand and
sales force will enhance Track Gear's capability to serve
its customers and licensors with distinctive, high-quality
racing apparel offered through major retailers."
Tultex is a consumer-oriented manufacturer, marketer and
distributor of activewear, licensed sports apparel and
private label products. Its premium brands, Discus Athletic
(Registered trademark) and LogoAthletic(Registered trademark),
are sold through department stores, sporting goods stores and
specialty chains. Products are also sold with the Tultex
(Registered trademark), Logo 7(Registered trademark) and Track
Gear(Registered trademark) names. For further information,
including press releases, access the Tultex home page at
http://www.tultex.com.
This release may contain certain forward-looking statements
that involve certain risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements. These risks and uncertainties
include the level of consumer apparel spending, demand for
the company's higher margin products, competitive pricing
environment and the financial strength of the retail
industry. Additional information on factors that could
potentially affect the company or its financial results may
be found in the company's filings with the Securities and
Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: June 19, 1998
TULTEX CORPORATION
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(Registrant)
By: /s/ S.H. Wood
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Suzanne H. Wood
Vice President and Chief
Financial Officer
