Golf apparel and outerwear company Sport-Haley has signed a joint venture deal with apparel manufacturer and marketer Explorer Gear USA to make and market Top-Flite branded apparel to Wal-Mart Stores in the US.

The venture will be formed and operated as a separate Colorado limited liability company (LLC), which intends to use the company's license with the Callaway Golf Company to contract for the manufacture of and marketing of Top-Flite apparel in the US.

The new company also aims to capitalise on Explorer Gear's contacts with Wal-Mart Stores to sell Top-Flite apparel.

Callaway has given Sport-Haley its consent to use the Top-Flite license in connection with the LLC, subject to certain conditions.

The first significant deliveries of Top-Flite apparel in conjunction with the agreement are expected to be made sometime in January 2006.

Explorer Gear is affiliated by ownership with Explorer Headgear, a Canadian corporation located in Markham, Ontario. Explorer Headgear is licensed by Callaway to manufacture and market Top-Flite apparel in Canada and Sport-Haley is so licensed in the US and certain other countries.

Explorer Headgear and Explorer Gear are affiliated with certain manufacturing plants in China, which are expected to manufacture the apparel for the LLC.

Donald Jewell, interim chief executive officer of Sport-Haley, said: "The introduction of Top-Flite branded apparel allows us to penetrate a sector of the golf apparel market other than the green grass market in which we primarily operate with our Ben Hogan and Sport Haley brands.

"While this initial offering will only include a limited collection of men's wear, we're excited about the potential for Top-Flite branded apparel. We believe that growth of the Top-Flite label can help the Company achieve significant increases in sales over the course of the next few years."

Explorer chief executive officer Gerard Lee said: "We have had significant success for several years selling Top-Flite branded apparel to Wal-Mart in Canada. The brand certainly seems to resonate well with Wal-Mart's customers."