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):
September 14, 1995
L.A. GEAR, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA
(State or other jurisdiction of incorporation)
1-10157
(Commission File Number)
95-3375118
(IRS Employer Identification No.)
2850 Ocean Park Boulevard, Santa Monica, California 90405
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(310) 452-4327
Not applicable
(Former name or former address, if changed since last report)
THIS REPORT INCLUDES A TOTAL OF 6 PAGES.
THE EXHIBIT INDEX APPEARS ON PAGE 4.
<PAGE>
Item 5. Other Events.
On September 14, 1995, L.A. Gear, Inc. announced a corporate
reorganization plan consisting of reengineering key business
processes, streamlining the Company's organizational structure and
substantially reducing operating expenses. A copy of the press
release announcing the Company's reorganization plan is attached
hereto as Exhibit 99.8 and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
99.8 Press Release, dated September 14, 1995.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, as amended, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto
duly authorized.
L.A. GEAR, INC.
Dated: September 14, 1995 By: /s/Thomas F. Larkins
Thomas F. Larkins,
Senior Vice-President and
Chief Administrative Officer
3
<PAGE>
EXHIBIT INDEX
Exhibit Page
No. Document No.
99.8 Press Release, dated September 14, 1995 5
4
<PAGE>
EXHIBIT 99.8
PRESS RELEASE
L.A. GEAR ANNOUNCES CORPORATE REORGANIZATION PLAN
Santa Monica, Calif., -- Sept. 14, 1995 -- L.A. Gear, Inc.
(NYSE:LA) today announced a corporate reorganization plan
consisting of reengineering key business processes, streamlining
the Company's organizational structure and substantially reducing
operating expenses.
Stanley P. Gold, Chairman of the Board, and William L.
Benford, President, said, "We need to focus the Company's
resources on those areas that will enable us to get closer to both
the retailer and the consumer. The reorganization is designed to
maximize the positive impact of the Company's continued efforts to
reaffirm its heritage as a premier designer and marketer of
women's and children's footwear. We remain committed to returning
the Company to profitability."
Messrs. Gold and Benford added, "To strengthen the product
and marketing side of our business, we are pleased to announce the
hiring of Jim Moodhe as Senior Vice President - Design,
Development and Marketing. Jim started his footwear career as one
of the first employees at Nike where he worked for ten years. He
subsequently served as a Vice President at K-Swiss and, most
recently, as President of Guess Athletic. Jim has enjoyed great
success in his past endeavors and we believe that he will enhance
our product lines, help strengthen the L.A. Gear message, and let
retailers and consumers see that their needs are our top
priorities."
Commenting on the Company's footwear offerings, Mr. Moodhe
said, "As our product lines continue to become more focused,
especially in the women's area, there is no reason why L.A. Gear
shoes cannot be the fun, fashion and fitness choice for both the
retailer and the consumer."
As part of the management restructuring, the Company
announced the promotion of David F. Gatto and Thomas F. Larkins.
Mr. Gatto will assume the position of Executive Vice
5
<PAGE>
President and oversee the Company's sales, merchandising and
operations functions. He joined the Company in September 1991 and
has served as Senior Vice President - International since January
1993. Mr. Larkins will become Senior Vice President and Chief
Administrative Officer and will oversee the Company's finance,
legal and administration functions. He has served as Senior Vice
President and General Counsel since joining the Company in January
1994.
One of the key priorities of the Company's reengineering
efforts is enhancing the Company's ability to get the "right"
product to market in the shortest possible time. The Company
hopes to reduce product cycle time significantly by improving
design capabilities, better utilizing product development
resources, strengthening relationships with factories and sourcing
agents, and maintaining disciplined inventory management
practices.
Prior to its November 30 fiscal year-end, the Company will
implement cost reduction measures targeted to reduce operating
expenses in fiscal 1996 by approximately $25 million on an
annualized basis. Among these measures is the elimination of 135-
160 full time jobs, representing approximately 30% of the
Company's domestic workforce. The Company is also evaluating the
closure of all or some of its seven retail outlet stores. At
fiscal year end, the Company expects to record a one-time
restructuring charge estimated at between $3.0 million and $5.0
million for severance and other costs associated with its
corporate reorganization.
Messrs. Gold and Benford stated, "The successful
implementation of our reorganization plan is expected to generate
both improved top line results and margins, and will reduce
selling, general and administrative expenses. We want to place an
ever-growing amount of L.A. Gear footwear in major national
accounts, reactivate interest in accounts previously supportive of
our brand and generate excitement for new products and product
categories."
L.A. Gear designs, develops and markets a broad range of
quality athletic and lifestyle footwear for adults and children.
6
