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
L.A. GEAR, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation)
0-10157
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(Commission File Number)
95-3375118
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(I.R.S. Employer Identification No.)
1800 Avenue of the Stars, Suite 405 Los Angeles, California 90067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 226-8844
2850 Ocean Park Blvd., Santa Monica, California 90405
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(Former Name or Former Address, if Changed Since Last Report)
---------------------
<PAGE>
Item 5. Other Events.
On June 12, 1998, the Company filed Debtor in Possession Interim
Statements and a Debtor in Possession Operating Report for the period January
13, 1998 through May 31, 1998 pursuant to United States Bankruptcy Code in the
Company's chapter 11 case number LA 98-11236-BR filed with the United States
Bankruptcy Court, Central District of California.
On June 15, 1998, the United States Bankruptcy Court, Central District
of California, confirmed a chapter 11 Plan of Reorganization for the Company.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
Exhibit No. Description of Exhibit
----------- ----------------------
101 Debtor in Possession Interim Statements from January
13, 1998 through May 31, 1998.
102 Debtor in Possession Operating Report from January
13, 1998 through May 31, 1998.
103 Press release dated June 16, 1998.
<PAGE>
SIGNATURE
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.
L.A. GEAR, INC.
Date: June 16, 1998. By: /s/ DAVID GATTO
------------------------------
David Gatto
Chairman of the Board and Chief
Executive Officer
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
- ----------- ----------------------
101 Debtor in Possession Interim Statements from January
13, 1998 through May 31, 1998.
102 Debtor in Possession Operating Report from January
13, 1998 through May 31, 1998.
103 Press release dated June 16, 1998.
Exhibit 101
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Office of the United States Trustee
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<TABLE>
<S> <C>
- ------------------------------------------------------------ -----------------------------------------------------------------
In re: DEBTOR IN POSSESSION INTERIM STATEMENT
L.A. GEAR, INC. Statement Number: -1-
a California corporation,
Debtor. For the Period FROM: 1/13/98
- ------------------------------------------------------------ TO: 1/31/98
Chapter 11 Case No. : LA 98-11236-BR
- ------------------------------------------------------------ -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
------------------------ ------------------ ----------------
General Payroll Tax
CASH ACTIVITY ANALYSIS (Cash Basis Only) Account Account Account
------------------------- ------------------ ---------------
A. Total Receipts per all Prior Interim Statements $ 27,969.10 $ N/A $ N/A
------------------------- ------------------ ---------------
B. Less: Total Disbursement per all Prior Statements
------------------------- ------------------ ---------------
C. Beginning Balance (A less B) 27,969.10 N/A N/A
------------------------- ------------------ ---------------
D. Receipts during Current Period
(Attach Separate Listing if Necessary)
Description
TOTAL RECEIPTS THIS PERIOD: None
------------------------- ------------------ ---------------
E. Balance Available (C plus D) 27,969.10
------------------------- ------------------ ---------------
F. Disbursements during Current Period
(Attach Separate Listing if Necessary)
Date Check No. Payee/Purpose
---- -------- -------------
TOTAL DISBURSEMENTS THIS PERIOD: None
------------------------- ------------------ ---------------
G. Ending Balance (E less F) $ 27,969.10 $ $
------------------------- ------------------ ---------------
</TABLE>
H. (1) General Account:
(a) Depository Name and Location: Bank of America, P. O. Box 3530,
Rancho Cordova, CA
(b) Account Number: 15812-27824
(2) Payroll Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
(3) Tax Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
I. Other monies on hand (Specify type and location) (i.e., Certificates of
Deposit, Petty Cash)
None
I, (Name/Title: Elizabeth Meisler, Accounting Manager ) declare under penalty of
perjury that the information contained in the above Debtor in Possession Interim
Statement is true and complete to the best of my knowledge.
Dated: March 30, 1998
/s/ ELIZABETH MEISLER, Accounting Manager
-----------------------------------------
Debtor in Possession or Trustee
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Revised June 1987 INTERIM STATEMENT UST-3
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<PAGE>
--------------------------------------------------------------
Office of the United States Trustee
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<TABLE>
<S> <C>
- ------------------------------------------------------------ -----------------------------------------------------------------
In re: DEBTOR IN POSSESSION INTERIM STATEMENT
L.A. GEAR, INC. Statement Number: -2-
a California corporation,
Debtor. For the Period FROM: 2/01/98
- ------------------------------------------------------------ TO: 2/28/98
Chapter 11 Case No. : LA 98-11236-BR
- ------------------------------------------------------------ -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
------------------------- ------------------ ---------------
General Payroll Tax
CASH ACTIVITY ANALYSIS (Cash Basis Only) Account Account Account
------------------------- ------------------ ---------------
A. Total Receipts per all Prior Interim Statements $ 27,969.10 $ N/A $ N/A
------------------------- ------------------ ---------------
B. Less: Total Disbursement per all Prior Statements 0
------------------------- ------------------ ---------------
C. Beginning Balance (A less B) 27,969.10
------------------------- ------------------ ---------------
D. Receipts during Current Period
(Attach Separate Listing if Necessary)
Description
TOTAL RECEIPTS THIS PERIOD: 48,551.21
------------------------- ------------------ ---------------
E. Balance Available (C plus D) 76,620.31
------------------------- ------------------ ---------------
F. Disbursements during Current Period
(Attach Separate Listing if Necessary)
Date Check No. Payee/Purpose
---- --------- -------------
Check printing charges for DIP account 17.58
TOTAL DISBURSEMENTS THIS PERIOD:
------------------------- ------------------ ---------------
G. Ending Balance (E less F) $ 76,502.73 $ $
------------------------- ------------------ ---------------
</TABLE>
H. (1) General Account:
(a) Depository Name and Location: Bank of America, P. O. Box 3530,
Rancho Cordova, CA
(b) Account Number: 15812-27824
(2) Payroll Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
(3) Tax Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
I. Other monies on hand (Specify type and location) (i.e., Certificates of
Deposit, Petty Cash)
None
I, (Name/Title: Elizabeth Meisler, Accounting Manager ) declare under penalty of
perjury that the information contained in the above Debtor in Possession Interim
Statement is true and complete to the best of my knowledge.
Dated: March 30, 1998
/s/ ELIZABETH MEISLER, Accounting Manager
-----------------------------------------
Debtor in Possession or Trustee
- --------------------------------------------------------------------------------
Revised June 1987 INTERIM STATEMENT UST-3
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<PAGE>
--------------------------------------------------------------
Office of the United States Trustee
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<TABLE>
<S> <C>
- ------------------------------------------------------------ -----------------------------------------------------------------
In re: DEBTOR IN POSSESSION INTERIM STATEMENT
L.A. Gear, Inc. Statement Number: -3-
a California corporation,
Debtor. For the Period FROM: 3/01/98
- ------------------------------------------------------------ TO: 3/31/98
Chapter 11 Case No. : LA 98-11236-BR
- ------------------------------------------------------------ -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
------------------------ ------------------ ----------------
General Payroll Tax
CASH ACTIVITY ANALYSIS (Cash Basis Only) Account Account Account
------------------------ ------------------ ----------------
A. Total Receipts per all Prior Interim Statements $ 76,520.31 $ N/A $ N/A
------------------------ ------------------ ----------------
B. Less: Total Disbursement per all Prior Statements 17.58
------------------------ ------------------ ----------------
C. Beginning Balance (A less B) 27,969.107
76,502.73
------------------------ ------------------ ----------------
D. Receipts during Current Period
(Attach Separate Listing if Necessary)
Description
TOTAL RECEIPTS THIS PERIOD: None
------------------------ ------------------ ----------------
E. Balance Available (C plus D) 76,502.73
------------------------ ------------------ ----------------
F. Disbursements during Current Period
(Attach Separate Listing if Necessary)
Date Check No. Payee/Purpose
---- --------- -------------
None
TOTAL DISBURSEMENTS THIS PERIOD:
------------------------ ------------------ ----------------
G. Ending Balance (E less F) $ 76,502.73 $ N/A $ N/A
------------------------ ------------------ ----------------
</TABLE>
H. (1) General Account:
(a) Depository Name and Location: Bank of America, P. O. Box 3530,
Rancho Cucamonga, CA
(b) Account Number: 15812-27824
(2) Payroll Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
(3) Tax Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
I. Other monies on hand (Specify type and location) (i.e., Certificates of
Deposit, Petty Cash)
Not applicable
I, (Name/Title: D. Garn Anderson, Vice President-Finance ) declare under penalty
of perjury that the information contained in the above Debtor in Possession
Interim Statement is true and complete to the best of my knowledge.
Dated: June 12, 1998
/s/ D. GARN ANDERSON, V.P. Finance
----------------------------------
Debtor in Possession or Trustee
- --------------------------------------------------------------------------------
Revised June 1987 INTERIM STATEMENT UST-3
- --------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------
Office of the United States Trustee
--------------------------------------------------------------
<TABLE>
<S> <C>
- ------------------------------------------------------------ -----------------------------------------------------------------
In re: DEBTOR IN POSSESSION INTERIM STATEMENT
L.A. Gear, Inc. Statement Number: -4-
a California corporation,
Debtor. For the Period FROM: 4/01/98
- ------------------------------------------------------------ TO: 4/30/98
Chapter 11 Case No. : LA 98-11236-BR
- ------------------------------------------------------------ -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
------------------------ ------------------ ----------------
General Payroll Tax
CASH ACTIVITY ANALYSIS (Cash Basis Only) Account Account Account
------------------------ ------------------ ----------------
A. Total Receipts per all Prior Interim Statements $ 76,520.31 $ N/A $ N/A
------------------------ ------------------ ----------------
B. Less: Total Disbursement per all Prior Statements 17.58
------------------------ ------------------ ----------------
C. Beginning Balance (A less B) 76,502.73
------------------------ ------------------ ----------------
D. Receipts during Current Period
(Attach Separate Listing if Necessary)
Description
TOTAL RECEIPTS THIS PERIOD: None
------------------------ ------------------ ----------------
E. Balance Available (C plus D) 76,502.73
------------------------ ------------------ ----------------
F. Disbursements during Current Period
(Attach Separate Listing if Necessary)
Date Check No. Payee/Purpose
---- --------- -------------
None
TOTAL DISBURSEMENTS THIS PERIOD:
------------------------ ------------------ ----------------
G. Ending Balance (E less F) $ 76,502.73 $ N/A $ N/A
------------------------ ------------------ ----------------
</TABLE>
H. (1) General Account:
(a) Depository Name and Location: Bank of America, P. O. Box 3530,
Rancho Cucamonga, CA
(b) Account Number: 15812-27824
(2) Payroll Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
(3) Tax Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
I. Other monies on hand (Specify type and location) (i.e., Certificates of
Deposit, Petty Cash)
Not applicable
I, (Name/Title: D. Garn Anderson, Vice President-Finance ) declare under penalty
of perjury that the information contained in the above Debtor in Possession
Interim Statement is true and complete to the best of my knowledge.
Dated: June 12, 1998
/s/ D. GARN ANDERSON, V.P. Finance
----------------------------------
Debtor in Possession or Trustee
- --------------------------------------------------------------------------------
Revised June 1987 INTERIM STATEMENT UST-3
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<PAGE>
--------------------------------------------------------------
Office of the United States Trustee
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<TABLE>
<S> <C>
- ------------------------------------------------------------ -----------------------------------------------------------------
In re: DEBTOR IN POSSESSION INTERIM STATEMENT
L.A. Gear, Inc. Statement Number: -5-
a California corporation,
Debtor. For the Period FROM: 5/01/98
- ------------------------------------------------------------ TO: 5/31/98
Chapter 11 Case No. : LA 98-11236-BR
- ------------------------------------------------------------ -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
------------------------ ------------------ ----------------
General Payroll Tax
CASH ACTIVITY ANALYSIS (Cash Basis Only) Account Account Account
------------------------ ------------------ ----------------
A. Total Receipts per all Prior Interim Statements $ 76,520.31 $ N/A $ N/A
------------------------ ------------------ ----------------
B. Less: Total Disbursement per all Prior Statements 17.58
------------------------ ------------------ ----------------
C. Beginning Balance (A less B) 76,502.73
------------------------ ------------------ ----------------
D. Receipts during Current Period
(Attach Separate Listing if Necessary)
Description
TOTAL RECEIPTS THIS PERIOD: None
------------------------ ------------------ ----------------
E. Balance Available (C plus D) 76,502.73
------------------------ ------------------ ----------------
F. Disbursements during Current Period
(Attach Separate Listing if Necessary)
Date Check No. Payee/Purpose
---- --------- -------------
None
TOTAL DISBURSEMENTS THIS PERIOD:
------------------------ ------------------ ----------------
G. Ending Balance (E less F) $ 76,502.73 $ $
------------------------ ------------------ ----------------
</TABLE>
H. (1) General Account:
(a) Depository Name and Location: Bank of America, P. O. Box 3530,
Rancho Cucamonga, CA
(b) Account Number: 15812-27824
(2) Payroll Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
(3) Tax Account:
(a) Depository Name and Location: Not applicable
(b) Account Number:
I. Other monies on hand (Specify type and location) (i.e., Certificates of
Deposit, Petty Cash)
Not applicable
I, (Name/Title: D. Garn Anderson, Vice President-Finance ) declare under penalty
of perjury that the information contained in the above Debtor in Possession
Interim Statement is true and complete to the best of my knowledge.
Dated: June 12, 1998
/s/ D. GARN ANDERSON, V.P. Finance
----------------------------------
Debtor in Possession or Trustee
- --------------------------------------------------------------------------------
Revised June 1987 INTERIM STATEMENT UST-3
- --------------------------------------------------------------------------------
Exhibit 102
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Office of the United States Trustee
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<TABLE>
<S> <C>
- ------------------------------------------------------------- -----------------------------------------------------------------
In re: DEBTOR IN POSSESSION OPERATING REPORT
L.A. Gear, Inc., Statement Number: -1- Page 1 of 3
a California corporation, For the Period FROM: 1/13/98
Debtor. TO: 5/31/98
- ------------------------------------------------------------
Chapter 11 Case No. : LA 98-11236-BR
- ------------------------------------------------------------ -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
1. Profit and Loss Statement (Accrual Basis Only)
A. Related to Business Operations:
Gross Sales $
------------------
Less: Sales Returns and Discounts
------------------
Net Sales -0-
---------------
Less: Cost of Goods Sold:
Beginning Inventory at Cost
------------------
Add: Purchases
------------------
Less: Ending Inventory at Cost
------------------
Cost of Goods Sold: -0-
---------------
Gross Profit
----------------
Other Operating Revenues (Specify) -0-
----------------
Less: Operating Expenses:
Officer Compensation
------------------
Salaries and Wages -- Other Employers
------------------
Total Salaries and Wages -0-
---------------
Employee Benefits and Pensions -0-
---------------
Payroll Taxes
------------------
Real Estate Taxes -- Refund (13,201.80)
------------------
Federal and State Income Taxes
------------------
Total Taxes (13,201.80)
---------------
Rent and Lease Exp. (Real Property and Personal Property)
------------------
Interest Expense (Mortgage, Loan, etc.)
------------------
Insurance
------------------
Automobile Expense
------------------
Utilities(Gas, Electricity, Water, Telephone, etc.) Refund (35,349.41)
------------------
Depreciation and Amortization
------------------
Repairs and Maintenance
------------------
Advertising
------------------
Supplies, Office Expenses, Photocopies, etc. 17.58
------------------
Bad Debts
------------------
Miscellaneous Operating Expenses (Specify)
------------------
Total Operating Expenses (35,331.83)
---------------
Net Gain/Loss from Business Operations 48,533.63
----------------
B. Not Related to Business Operations:
Income:
Interest Income -0-
---------------
Other Non-Operating Revenues (Specify) -0-
---------------
Gross Proceeds on Sale of Assets
------------------
Less: Original Cost of Assets plus Expenses of Sale
------------------
Net Gain/Loss on Sale of Assets -0-
---------------
Total Non-Operating Income -0-
----------------
Expenses Not Related to Business Operations:
Legal and Professional Fees (Specify) -0-
---------------
Other Non-Operating Expenses (Specify) -0-
---------------
Total Non-Operating Expenses -0-
----------------
NET INCOME / LOSS FOR PERIOD $ 48,533.63
----------------
- ------------------------------------------------------------------------------------------------------------------------------------
Revised April 1989 OPERATING REPORT UST-4
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO.: - 1 - Page 2 of 3
- --------------------------------------------------------------------------------
2. Aging of Accounts Payable and Accounts Receivable (exclude pre-petition
accounts payable):
----------------------- ----------------------
Accounts Payable Accounts Receivable
----------------------- ----------------------
Current Under 30 Days $ Not applicable $ Not applicable
----------------------- ----------------------
Overdue 31-60 Days
----------------------- ----------------------
Overdue 61-90 Days
----------------------- ----------------------
Overdue 91-120 Days
----------------------- ----------------------
Overdue Over 121 Days
----------------------- ----------------------
TOTAL $ Not applicable $ Not applicable
----------------------- ----------------------
3. Statement of Status of Payments to Secured Creditors and Lessors:
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Post-Petition
Payments Not Made*
----------------------------------------
<S> <C> <C> <C> <C> <C>
Frequency
of Payments per Amount Next
Creditor/ Contract / Lease of Each Payment Number Amount
Lessor (i.e., mo., qtr.) Payment Due
- ----------------------- ---------------------- --------------------- ---------------------- ---------------------- -----------------
$ $
- ----------------------- ---------------------- --------------------- ---------------------- ---------------------- -----------------
None
- ----------------------- ---------------------- --------------------- ---------------------- ---------------------- -----------------
*Explanation of Non-Payment:
</TABLE>
4. Tax Liability:
Gross Payroll Expense for Period $ - 0 -
------------
Gross Sales for Period Subject to Sales Tax $ - 0 -
------------
<TABLE>
<S> <C> <C> <C>
------------------------- ---------------------------- --------------------------
Date Paid Amount Paid* Post-Petition
Taxes Still
Owing
------------------------- ---------------------------- --------------------------
Federal Payroll and Withholding Taxes Not applicable $ $
------------------------- ---------------------------- --------------------------
State Payroll and Withholding Taxes Not applicable
------------------------- ---------------------------- --------------------------
State Sales and Use Taxes Not applicable
------------------------- ---------------------------- --------------------------
Real Property Taxes Not applicable
------------------------- ---------------------------- --------------------------
</TABLE>
* Attach photocopies of depository receipts from taxing authorities or financial
institutions to verify that such deposits or payments have been made.
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5. Insurance Coverage: Carrier / Amount Policy Premium
Agent of Expiration Paid Through
Name Coverage Date Date
------------------------ ------------------- ---------------- -------------------
Worker's Compensation Not applicable
------------------------ ------------------- ---------------- -------------------
Liability Not applicable
------------------------ ------------------- ---------------- -------------------
Fire and Extended Coverage Not applicable
------------------------ ------------------- ---------------- -------------------
Property Not applicable
------------------------ ------------------- ---------------- -------------------
Theft Not applicable
------------------------ ------------------- ---------------- -------------------
Life (Beneficiary: ) Not applicable
------------------------ ------------------- ---------------- -------------------
Vehicle Not applicable
------------------------ ------------------- ---------------- -------------------
Other (Specify: )
------------------------ ------------------- ---------------- -------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DEBTOR IN POSSESSION OPERATING REPORT NO.: - 1 - Page 3 of 3
- --------------------------------------------------------------------------------
Questions:
A. Has the Debtor in Possession provided compensation to any officers,
directors, shareholders, or other principals without the approval of
the Office of the United States Trustee?
| | : Yes Explain:
|XX| : No
B. Has the Debtor in Possession, subsequent to the filing of the
petition, made any payments on its pre-petition unsecured debt,
except as have been authorized by the Court?
| | : Yes Explain:
|XX| : No
7. Statement of Unpaid Professional Fees (Post-Petition Amounts Only)
- --------------------------------------------------------------------------------
State Type of Total Post-
Professional Petition
Name of Professional (Attorney/Accountant/etc.) Unpaid
- -------------------- --------------------------- ---------------------------
None.
- -------------------- --------------------------- ---------------------------
8. Narrative Report of Significant Events and Events out of the Ordinary
Course of Business: (Attach separate sheet if necessary)
The Bankruptcy Court approved the Debtor's Modified Second Amended
Disclosure Statement. The hearing to confirm the Debtor's Second Amended Plan
of Reorganization is scheduled for June 15, 1998.
9. Quarterly Fees: (This Fee must be paid to the United States Trustee every
calendar quarter)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
- -------------------- ------------------ ------------------ ---------------- ------------------- --------------- --------------------
Quarterly Total Quarterly
Period Disbursements Quarterly Date Amount Check Fee Still
Ending for Quarter Fee Paid Paid No. Owing
- -------------------- ------------------ ------------------ ---------------- ------------------- --------------- --------------------
3/31/98 $ 17.58 $ 250.00 5/22/98 $ 250.00 92368 $ -0-
- -------------------- ------------------ ------------------ ---------------- ------------------- --------------- --------------------
</TABLE>
I, (Name/Title: D. Garn Anderson, Vice President-Finance), declare under penalty
of perjury that the information contained in the above Debtor in Possession
Operating Report is true and complete to the best of my knowledge.
Dated: June 12, 1998
/s/ D. GARN ANDERSON, V.P. Finance
----------------------------------
Debtor in Possession or Trustee
Exhibit 103
June 16, 1998 Contact: Bill Schreiber
(916) 443-3354
IMMEDIATE RELEASE
L.A. Gear Inc. Wins Court Confirmation
Of Reorganization Plan
Company Continues Transition Activities
Santa Monica, CA--Judge Barry Russell of the United States Bankruptcy
Court, Central District of California, Monday confirmed a Chapter 11 Plan of
Reorganization for L.A. Gear, Inc.
The plan converts roughly $60 million in pre-petition indebtedness into
a new issue of Series A Voting, Participating, Convertible Preferred Stock. It
also converts L.A. Gear's outstanding Series B Preferred Stock into New Common
Stock. L.A. Gear's existing outstanding Common Stock is terminated pursuant to
the plan.
L.A. Gear commenced the Chapter 11 case about five months ago.
"The confirmation of a plan of reorganization within a five-month period of
time is an outstanding accomplishment," said David Gatto, chairman and chief
executive officer of L.A. Gear. "Our successful financial reorganization will
permit us to focus on completing the transition of our business to licensing
L.A. Gear's valuable trademarks and trade names."
Gatto said that, "L.A. Gear now will expand its domestic and worldwide
licensing efforts to include key apparel and accessory categories, in addition
to its existing lines of athletic footwear."
Certain statements made in this press release are forward-looking, reflect
L.A. Gear's current expectations, and involve certain risks and uncertainties.
There can be no assurance that the Company's actual future performance will meet
the L.A. Gear's or its shareholders expectations. L.A. Gear's future operating
results are difficult to predict and subject to significant fluctuations.
Factors that may cause future results to differ materially from L.A. Gear's
current expectations include, among others: general economic and business
conditions; competition; success of operating initiatives; development and
<PAGE>
operating costs; advertising and promotional efforts; brand awareness; the
existence or adherence to development schedules; the existence or absence of
adverse publicity; availability, location and terms of product distribution
channels; changes in business strategy or development plans; the quality of
management; availability, terms and deployment of capital and borrowings;
business abilities and judgment of personnel; availability of qualified
personnel; labor and employee benefit costs; changes in, or the failure to
comply with, government regulations; the ability to reverse recent trends that
have caused reductions in market share and substantial losses; the continued use
of intellectual property; continued access to adequate sources of product
supply; risks associated with unaffiliated manufacturers and international
operations; and other factors referenced in L.A. Gear's filings with the
Securities Exchange Commission.
L.A. Gear licenses its trademarks and trade names around the world for use
in conjunction with a broad range of consumer products.
###
