Liz Claiborne Inc. said early Thursday that it reached an agreement with a group of investors to sell its Ellen Tracy brand for $42.3 million.
This story first appeared in the February 14, 2008 issue of WWD. Subscribe Today.
The investors include Radius Partners LLC, William Sweedler of Windsong Brands LLC, Barry Sternlicht and Marvin Traub.
The deal involves selling “substantially all of the assets and liabilities of the Ellen Tracy brand for a purchase price consisting of a $27.3 million cash payment subject to inventory adjustment payable at closing, and a contingent cash payment of up to $15 million based on brand performance from 2008 through 2012,” Liz Claiborne stated.
Liz Claiborne added that it will “retain approximately $8.2 million in net working capital, excluding inventory.”