Fashion major Global Brands Group (GBG) will sell a significant part of its North American licensing business to the Differential Brands Group. The assets to be sold comprise its North American children’s wear and accessories businesses and a majority of its West Coast and Canadian fashion operations. Among them is the label BCBG Max Azria, which GBG acquired last year.
The sale proceeds will be used to repay debt and lower working capital. GBG will continue to be a global company and somewhat less reliant on the US, and more equally diversified going forward. The debt-ridden group’s revenues increased 3.4 per cent in the 2018 financial year. The divestment will cut GBG’s 7,000 employees by over half. GBG’s Europe and Asia-based brands, as well as its global brand management business, will stay the same.
The company licenses brands such as Juicy Couture, Calvin Klein, and Under Armour. Its license portfolio also ranges from Disney characters to celebrity brands including footballer David Beckham and singer Jennifer Lopez. Global Brands was spun off from Li & Fung in July 2014, and sells branded children’s, men’s and women’s fashion as well as footwear and accessories priced in the affordable luxury range. Li & Fung is one of the world’s biggest global supply chain management companies.
