I just saved as .Png in Photoshop. I don't know why that would be happening.
What do you plan on using it for? If you're starting over with a new design and the people who made it originally aren't contactable for some reason or dont have the original file, It might be worth getting someone to design a new one or recreate this one in high resolution.
When I made a website for my old business, the logo I made was great size for the website but when I wanted to use it again in larger images, I had to recreate it and it wasn't the same. It was very frustrating stuff.
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