Global Brands Group will sell a substantial part of its North American branded business to Differential Brands Group for $1.38 billion. The move, announced at the release of its annual results said it will allow it to cut debt, pay a modest special dividend to shareholders and free capital to grow a more focused business, the company said. It will also result in about half of its 7000 staff leaving the company.
Global Brands Group is currently carrying about $1.1 billion of debt, much of it related to its 2014 spin-off from Li & Fung and subsequent listing.
The assets to be transferred include: licences for Disney, Star Wars, Calvin Klein, Under Armour, Tommy Hilfiger, Bebe, Joe’s, Buffalo David Bitton, Frye, Michael Kors, Cole Haan, Kenneth Cole and the BCBG Max Azria label which it bought last year for $27.4 million after the company filed for bankruptcy.
On branded product side, the group’s European and Asian businesses will remain as before, while its US business will now focus on footwear and its remaining fashion business. Brand Management will continue to be managed on a global basis.
