IRVINE, CA, November 23, 2010 - Star Trac (the â€œCompanyâ€), a leading developer of advanced fitness equipment, announced today that it has entered into an irrevocable Assignment for the Benefit of Creditors (â€œABCâ€) effective immediately, in accordance with California law. All assets of Unisen, Inc. will be immediately transferred to a new corporate entity, Core Industries, Inc. The purpose of this process is to develop a comprehensive strategic plan to properly monetize the assets for the benefit of creditors and to improve Star Trac's balance sheet to create a healthy company going forward.
On July 6, 2010, the Company announced that the majority interest of Star Trac's parent company was acquired by fitness industry veteran, Michael Bruno. Since that time, the Company has been in negotiations with vendors to restructure outstanding payables; however, this process did not yield adequate results to avoid the Assignment. The Company's executive team determined that it was in the best interest of all stakeholders including its shareholders, creditors and employees, to continue negotiations with vendors through the ABC process.
â€œDespite the infusion of capital from the investment by Michael Bruno, our company could not reduce its payables adequately through direct settlement negotiations with our vendors,â€ said Mike Leveque, President and COO of Star Trac. â€œWe take this process as an integral step towards repositioning the organization for long-term success. Our entire leadership team is committed to increasing our ability to provide the product innovation, quality, reliability and customer service that have been the Star Trac brand legacy since 1988. We are determined to emerge as a stable company that will be better positioned to take care of our customers.â€
All purchase orders that have been placed with Star Trac will transfer to the new company and will be honored at the terms of the original order. All warranties for product in the field will be honored by the new company.
About Star Trac
Since 1988, Star Trac has been a leader in developing advanced equipment for the fitness industry, focused on providing products to mold lifelong habits for health and fitness. Its user-focused product innovations are reflected in the complete line of cardiovascular and strength equipment, including the revolutionary Star Trac Coachâ„¢, a personalized treadmill workout led by a professional coach, the groundbreaking eSpinnerÂ®, the newest SpinningÂ® innovation resulting from the long running relationship between Star Trac and Mad Dogg Athletics, and the Inspiration Strengthâ„¢ line that takes aesthetics, biomechanics, and features to the next level. More than four million people in over 75 countries use Star Trac exercise equipment daily, enjoying its unparalleled functionality and style. For more information about Star Trac, which is headquartered in Irvine, Calif., call 1-800-228-6635 or visit www.startrac.com.