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SHEFFIELD INDUSTRIES RESCINDS DISTRIBUTION RIGHTS AGREEMENT WITH S.T.S. CORPORATION MIAMI AND GRAND SLAM SPORTSWEAR, INC.

SHEFFIELD INDUSTRIES RESCINDS DISTRIBUTION RIGHTS AGREEMENT WITH S.T.S.
 CORPORATION MIAMI AND GRAND SLAM SPORTSWEAR, INC.
 MIAMI, Oct. 13 /PRNewswire/ Sheffield Industries, Inc. (NASDAQ:HOSE), manufacturers and distributors of apparel products for adults and children including ladies sheer hosiery, announced today that it has rescinded its Distribution Rights Agreement with S.T.S. Corporation of Miami and Grand Slam Sportswear, Inc. entered into effective March 1, 1992. Under the terms of the Distribution Rights Agreement , S.T.S. and Grand Slam had exclusively manufactured for Sheffield, T-shirts and other printed apparel under college and sport licenses as well as Sheffield's proprietary product lines.
 "Since Sheffield's acquisition of Beezil Dezign, Inc. in June of his year, we have aggressively put into place personnel, equipment and a marketing team for in-house production and distribution of T-shirts and printed apparel. As a result, we now have the rights to all the college team sports licenses S.T.S. had. The distribution arrangement with S.T.S. was redundant. We are very focused on earnings. The obvious economies of scale realized by operating our own manufacturing facility should enhance profitability," said Mitchell A. Hammer, president and chief executive officer of Sheffield Industries, Inc.
 Currently Sheffield manufactures and directly distributes T-shirts and other printed apparel under its "Country and Western American" logo and design, as well as products under an exclusive license with the Negro Baseball League Museum. Both had previously been produced by S.T.S. In addition, Sheffield will produce its "Sheffield Sport" and "Team Sports by Sheffield" proprietary product lines in its new manufacturing facility in Miami.
 Under the terms of the Termination Agreement, S.T.S. has returned to Sheffield advances for cash and inventory, as well as 57,693 shares of Sheffield common stock. These shares shall be held in escrow pursuant to an agreement whereby Sheffield will indemnify the S.T.S. shareholders in the event of any adverse income tax consequences as a result of the recision of the Distribution Rights Agreement.
 Sheffield Industries, Inc., manufactures and distributes ladies' and children's hosiery products including pantyhose, knee-highs and tights under the "Fruit of the Loom" label; fashion-oriented products in its "Chic" brand label program and private label products of its customers which include K-Mart, Wal-Mart, J.C. Penney, Rite-Aid, F.W. Woolworth, Family Dollar, Payless Shoe Source and Sears. Sheffield also manufactures and markets T-shirts, sweat shirts and sweat pants under licenses from major colleges and universities; manufactures and markets "LeRoi" children's pantyhose, tights and sleepwear and manufactures printed and embroidered sweatshirts and T-shirts sold under the "Beezil" label through 2,000 college bookstores, hotels and resorts including Walt Disney Company stores.
 -0- 10/13/92
 /CONTACT: Mitchell A. Hammer, president of Sheffield Industries, Inc., 305-624-8493, ext. 112/
 (HOSE) CO: Sheffield Industries, Inc. ST: Florida IN: TEX SU:


AH -- NY056 -- 9368 10/13/92 13:31 EDT
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Publication:PR Newswire
Date:Oct 13, 1992
Words:479
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