Converse closing Apex One unit

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Converse is making the long expected move of shutting down its Apex One subsidiary and phasing out the Apex brand of athletic footwear, apparel and licensed merchandise. Converse, which acquired the financially troubled Apex earlier this year, cited weak orders for the phase-out. As a result, Apex co-founder Michael Lewis has resigned as senior VP of Converse. Earlier this summer, Converse assumed several of the licensing arrangements Apex had with pro sports leagues, like the National Football League, and speculation within the industry is that the elimination of Apex could impact the planned introduction of NFL merchandise from Converse this fall. Converse also announced second-quarter footwear sales will reach $89 million, down from $104 million in second quarter 1994, and expects to record a significant write-off related to buying Apex.

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