L.A. Gear Agrees to Investor’s Call to Add a Manager
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The investment fund that has agreed to pump $100 million into L.A. Gear is calling for major management changes at the slumping sneaker firm, including the appointment of a chief operating officer.
L.A. Gear, which grew explosively during the past six years to become the nation’s No. 3 sneaker marketer, said it agrees with the proposals by the investment fund, Trefoil Capital Investors. Until now, the firm has never had a chief operating officer.
A spokesman representing L.A. Gear and Trefoil said the management proposals would not diminish Greenberg’s role. The spokesman also said L.A. Gear and Trefoil remain on track for closing their $100-million investment deal in September. Gear.
Separately, L.A. Gear announced that, as expected, its banks waived a loan provision requiring the company to turn a profit every quarter. Last week, L.A. Gear restated its second-quarter results to show a loss of $4 million.
Under the agreement with the banks, L.A. Gear’s credit line was cut from $300 million to $200 million, but the company said it still has enough financing to fund its operations.
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