OTHER NEWS - April 18, 1995
<i> Times Staff and Wire Reports</i>
L.A. Gear Threatens to Call Off Merger: The Santa Monica company told Ryka Inc. that it would end its agreement to acquire the cash-strapped women’s footwear maker unless the companies can agree on new terms. Earlier this month, Ryka said it was in default with its Korean lender and reported an unexpected 1994 loss of $511,415, or 2 cents a share, on sales of $16.3 million. The Norwood, Mass., company projected losses for the first and second quarters. Ryka also said it was asking L.A. Gear to provide it with short-term financing to meet a “critical cash shortage” before the expected merger completion date of July 31. L.A. Gear agreed in January to buy Ryka for about $16.4 million in cash and stock.
