Activewear distributor Broder Bros Co has managed to stave off bankruptcy by refinancing 91.75% of its outstanding debt - but warned it is still an option if the deal does not go through.

The company is still short of the 95% refinancing required to avoid a Chapter 11 bankruptcy restructuring but believes the required conditions have been met.

However, it said if the deal falls through it will form a new wholly owned subsidiary to hold its assets.

A refinancing deal is preferable to an in-court restructuring which would add an estimated $25m in fees and other costs.

Broder Bros distributes the Fruit of the Loom, Gildan, Hanes and Jerzees brands to the imprinting, embroidery and promotional product industries via its three divisions.