Generra Sportswear Files For Bankruptcy Protection

Generra Sportswear, the Seattle company that clothed the nation's youth in rainbow-hued, heat-sensitive T-shirts and jeans, has joined the long list of retailers and suppliers seeking bankruptcy-court protection.

Generra said yesterday it would reorganize its business under Chapter 11 of the U.S. Bankruptcy Code. The plan calls for layoffs and discontinuing the company's juniors' and girls' clothing divisions.

Generra, founded in 1980 by former Brittania Sportswear executives, quickly grew to become a major national force in the young men's sportswear business.

The company faltered when sales in its line of heat-sensitive clothing plummeted, leaving Generra stuck with thousands of undyed garments that now sell under the LOH label, which Chairman Steve Miska admits is short for "leftover Hypercolor."

There have been other signs of financial troubles within the company. Generra laid off a third of its workforce earlier this year, leaving about 220 employees. The company said those layoffs were due to poor fall 1992 sales and the impact on Generra of the bankruptcy filings of major department stores like Macy's, Frederick & Nelson and the Allied and Federated stores.

In recent weeks, industry insiders familiar with Generra have painted a picture of a company adrift. Generra has not had a chief designer for its young men's clothing - its core business - since the last person in that position left a few months ago.

Generra worked out an agreement with its bankers to restructure debts in late April. But yesterday, Miska said the restructuring "posed significant limitations on our ability to operate efficiently and meet customer needs."

Miska said the bankruptcy filing would let the company restructure its debts and deal with manufacturers, who have agreed to finance Generra's clothing lines.

"By resizing and concentrating on our most popular lines," Miska said, "we're taking positive steps to improve the company's future."