Sporting Goods Maker Gets Investor Aid in Bankruptcy

Pacific International Enterprises Inc., a small Los Alamitos-based maker of snowboards and other sporting goods, got extra help Thursday from a private investor to help it emerge from bankruptcy.

After about six months of operating in the red, Pacific International reached an agreement with Zaremba Group, a shareholder group interested in saving its investment with the sporting goods manufacturer, Pacific Chairman and Chief Executive Binks Graval said.

The company filed for Chapter 11 bankruptcy protection in September to allow it to reorganize and avoid eviction from its offices, he said.

“It’s been a terrible ordeal,” Graval said.

Zaremba will pay nearly $500,000 to help Pacific International come out of bankruptcy and provide enough money for working capital. Graval predicted the company will post $10 million in sales this year.

In return, Zaremba will acquire all of the existing Pacific International assets and will lease them to the company for $1 per year.

As part of the agreement, Pacific International also will relocate its manufacturing plant from Goldenville, Wash., to Southern California, Chief Financial Officer Anthony Broughton said. A location had not yet been determined, but Broughton said the plant would employ about 100 people.

“This is a good time for us. Sports products are high in demand right now, and we face steep competition from the Europeans,” Graval said.

Zaremba will also help Pacific International market and sell its products, which include snowboards, wake boards, skateboards, ski boards, and snow and water skis.

The company sells its products to other manufacturers, which in turn sell them to retailers, Graval said.