Sport-Haley, Inc. entered into an Agreement to purchase all outstanding shares of Reserve Apparel Group, LLC, a joint venture operation between Sport Haley and Explorer Gear USA, Inc. Sport-Haley owned 51% of the J.V. and Explorer Gear owned 49%. The Agreement requires Sport-Haley to make a lump sum payment to Explorer Gear of $375,000. The joint venture was originally formed in November of 2005 to market Top-Flite apparel to Wal-Mart. After Reserve Apparel began operations, disputes arose between the parties concerning the formation and operation of the business. As part of the acquisition agreement, both companies have agreed to settle and resolve any asserted or potential claims against each other. Sport-Haley plans to continue marketing Top-Flite apparel to Wal-Mart Stores in through Reserve Apparel.
