Big Dog Holdings Inc, a developer, marketer and retailer of branded, lifestyle consumer products, is to purchase the assets of Crazy Shirts Inc, a privately held casual sportswear manufacturer and retailer, for approximately $10 million.

Crazy Shirts will voluntarily file for relief under Chapter 11 of the Bankruptcy Law. Big Dogs will purchase the assets through the bankruptcy court process. The transaction is expected to close within 60 days and is subject to bankruptcy court approval.

Based in Honolulu, Hawaii, Crazy Shirts is a vertically integrated specialty retailer of souvenir T-shirts, knit tops and accessories serving the high-end tourist market. Its products are sold via the company's 44 retail stores in tourist locations in the United States and Guam. Two-thirds of the stores are in Hawaii. Crazy Shirts also sells its products to wholesale accounts, such as duty free Shops, and through its Internet site at and a mail order catalogue.

In the year ended February 25, 2001, Crazy Shirts had sales of $47.7 million and a net loss resulting in subsequent cash flow difficulties.

Commenting on the announcement, Andrew Feshbach, chief executive officer of Big Dogs, said: "We are pleased about the acquisition of Crazy Shirts, but at the same time recognise the significant amount of work required to turn this distressed business around. In the face of a drop off in Japanese tourism in Hawaii, competitive pressures and other factors, the sales of the company have been declining for a number of years. However, we believe in the Crazy Shirts brand and think Big Dogs is uniquely positioned to achieve this turn-around.

"Both companies are vertically integrated manufacturers and retailers of casual sportswear with a focus on graphics, especially graphic T-shirts. Both target the tourist market, in a complementary fashion, with Crazy Shirts focused more on the high-end market and Big Dogs oriented toward the middle market."

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