Prince Files for Bankrupcy Chapter 11 (May 1, 2012)

[djarvik]

May 1, 2012

Dear Valued Prince Customer:

This morning Prince Sports Inc. and its U.S affiliates voluntarily filed for Chapter 11 reorganization under the United States Bankruptcy Code for the State of Delaware. We are taking this step at this point in time in order to build the strongest foundation possible for the Prince brand in the future. We anticipate emerging from the reorganization as an enterprise that will provide even better partnership for our customers.

In light of this important announcement, and because of our relationship with your company, I wanted to be in direct contact with you about this development.

Chapter 11 does not mean Prince is going out of business. A formal restructuring will give us the time and resources we need to address our financial challenges while we continue daily operations. This proposed restructuring would relieve the Company of over $60 million of secured indebtedness that would give Prince the relief it needs to focus on building the brand. It would also allow us to reevaluate our business model and ultimately position Prince to compete more effectively.

Subsidiaries outside of the U.S. (including Prince Europe, Prince Benelux, Prince Italy, Prince France, Prince Taiwan and Prince China) are not subject to the proceedings and are expected to operate in ordinary course. We anticipate continuing to serve all of our customers globally during this process.

Your partnership with us is of the utmost importance. We want to assure you, our customers, that we remain deeply committed to delivering the services and innovative products you have come to expect from Prince. To help us best meet your product needs we ask for your support in following our existing business terms and conditions.

Throughout, Prince will continue to focus on what we have always done best—bringing innovative products to market that help athletes take their game to the next level.

All of us at Prince appreciate your support, loyalty and business, and we look forward to continuing to strengthen our relationship with you in the future. You can expect to hear from your sales manager in the coming days to address any more specific questions.

In an effort to provide you with as much information as possible, please click here to read the press release related to today’s announcement.

Sincerely,

Gordon Boggis
President and CEO
Prince Sports, Inc.

[emate007]

Not really surprised. They've been struggling for a few years. Head isn't that much better off, but they at least have a few of the top pros playing with their equipment.

[ILuvBillVal]

The racquet formerly known as.