The British clothing firm Lonsdale is to sponsor gay pride festivals as part of a German campaign to reclaim its logo from neo-Nazis.

Its hooded tops are popular among skinheads because the Lonsdale brand name which is spread across the front includes the letters "NSDA", the first four initials of the German for Hitler's Nazi Party, the NSDAP.

Wearing the tops under a bomber jacket so that only the four letters are visible has been a neo-Nazi habit for several years. The fact that the "P" is missing helps wearers to escape prosecution for flaunting Nazi symbols.

Lonsdale admits that about 12 per cent of its customers in Germany are from the far Right.

"The figures are shocking," said Tobias Heupts, the head of marketing for Punch GmbH which distributes Lonsdale across Germany, the Netherlands and Belgium.

"Our aim is to to become uninteresting to far-Right people and attract those who until now have been worried about wearing Lonsdale."

Besides gay pride festivals, the firm plans to sponsor multi-cultural events and a football club for Africans in Germany under the slogan "Lonsdale loves all colours".

Some neo-Nazis are reported to be protesting by publicly burning Lonsdale clothing.