ChampionLyte says it is in the final stages of negotiations with a former Snapple executive to head up the company's soon-to-be-formed beverage division which will make and distribute its sugar-free sports drink.
Acting interim COO Marshall Kanner said one of the initial goals of his interim management team was to find an industry veteran to help the company through the restructuring and subsequent re-launch of ChampionLyte. He said they hope to finalize that agreement within the next week.
The company has also negotiated hundreds of thousands of dollars in reductions of liabilities with vendors and creditors and hopes to reach a satisfactory settlement of the long-term litigation with Sara Lee Corp concerning the product name and licensing, added Kanner.
"The company has been involved in a very lengthy and costly legal battle with Sara Lee concerning the name ChampionLyte," Kanner said. "We're extremely confident that we will soon reach an agreement with the Chicago-based multi-national that will be satisfactory to all parties."
Sara Lee owns Champion Products and the rights to the name Champion as it relates to products that are associated with sports. Approximately two years ago, Sara Lee initiated a trademark infringement lawsuit that has put a financial strain on the company.