McRae Industries, Inc. Reports the Acquisition of Assets From Texas Boot
June 29 2005 - 9:41AM
PR Newswire (US)
McRae Industries, Inc. Reports the Acquisition of Assets From Texas
Boot MOUNT GILEAD, N.C., June 29 /PRNewswire-FirstCall/ -- McRae
Industries, Inc. (Amex: MRIA; MRIB) reported the closing of its
acquisition of certain assets from Texas Boot, Inc. ("Texas Boot").
In May 2005, McRae Industries, Inc. (the "Company") negotiated the
terms of an asset purchase agreement (the "Purchase Agreement")
providing for the purchase by the Company of certain assets from
Texas Boot including its trademarks (including the marks Laredo, J.
Chisolm, Code West and Performair), its outstanding accounts
receivable and certain inventory. Texas Boot is and has been
operating as a debtor-in- possession in a case under Chapter 11 of
the United States Bankruptcy Code. In accordance with applicable
bankruptcy court procedures, an auction for the assets was
conducted on June 23, 2005. The Company won the auction by agreeing
to increase the total purchase price payable under the Purchase
Agreement to approximately $2.16 million. Of the total price,
$1,525,000 is allocable to the acquired trademarks, $519,807 is
allocable to the acquired accounts receivable and $115,500 is
allocable to the acquired inventory. On June 24, 2005, the United
States Bankruptcy Court for the Middle District of Tennessee
approved the Purchase Agreement as modified by the increased
purchase price and the Purchase Agreement became effective. The
transaction closed on June 28, 2005. The purchased assets will be
used by the Company's wholly owned subsidiary, Dan Post Boot
Company, which markets and distributes primarily western footwear
for men, women and children under the Dan Post, Dingo and American
West brand names. The Laredo brand has a strong heritage as a
dominant brand in the western boot market. Our boot products are
sold nationwide to major discount stores, regional specialty chain
stores, major western stores and direct mail catalogs. DATASOURCE:
McRae Industries, Inc. CONTACT: Gary McRae, President of McRae
Industries, Inc., +1-910-439-6147 Web site:
http://www.mcraeindustries.com/
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