The operators of Sports Specialties Corp. in Irvine offered Friday to buy out the chairman of bankrupt MacGregor Sporting Goods for more than $3 million as the first step in their plan to buy and revive the New Jersey company.
James H. Warsaw, president of the Irvine cap manufacturer, said he submitted his investor group's proposal to Frederic H. Brooks, MacGregor's chairman and its largest shareholder with 25% of the stock.
MacGregor, one of the most prominent names in athletic equipment and clothing, filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code last month. It posted losses totaling $22 million over the last 2 fiscal years, ended July 31.
If Brooks accepts the offer, he would resign his positions and become founder-consultant to the firm, Warsaw said. Warsaw then would become chairman and head the reorganization effort, which would include a tender offer to remaining shareholders at the same price Brooks would get--$1.75 a share.
That price values MacGregor's total stock outstanding at more than $11 million.
With shareholder and Bankruptcy Court approval, Warsaw and his brother, Robert A. Warsaw, would acquire the remaining shares of MacGregor. As previously reported, the brothers would then take MacGregor private, move its headquarters to Irvine and merge Sports Specialties into MacGregor.