MILAN -- Simint SpA said Tuesday it is selling its troubled U.S. subsidiary, Simint USA, to Ong Beng Seng, a Singapore financier and Armani distributor.
The announcement confirmed reports published here May 31 that such a deal was imminent.
Simint manufactures and distributes the Armani jeans line, and Simint USA operates the A/X Armani Exchange business.
Ong is a Simint shareholder and distributes Armani jeans and sportswear lines in the Far East and the U.K. Simint said its board approved the sale late Monday, although the offer was lower than they had hoped.
The board decided to accept Ong's offer to pay $12.6 million (20 billion lire) and shoulder the burden of some $24 million to $25 million (30 billion to 40 billion lire) in losses at Simint USA. The decision was taken in the interests of keeping future losses off the parent company's balance sheet and rapidly moving to a general restructuring, Simint said in a statement.
"The sale of Simint USA is the cornerstone of [Simint's] industrial and financial restructuring plan," according to a Simint spokesman in Milan.
A representative of the Ong business in London said Ong was traveling and unreachable and that he, himself, was unable to comment on the sale.
The Simint board also approved a three-year restructuring plan to wipe out its losses, bring its net assets to $4.4 million (7 billion lire) million) and pave the way for the company to break even by the end of the year, the spokesman said.
As reported, Simint has an accumulated loss of $115.8 million (184 billion lire) in the 10 months ended Feb. 28, due to losses at the A/X business and balance sheet writeoffs at the parent company. In addition, it will take a further loss of $32.7 million (52 billion lire) due to the sale of the U.S. subsidiary.
The combined losses will be wiped out through the use of reserves in the amount of $88.1 million (140 billion lire), share capital for $29.6 million (47 billion lire) and the deferral of credits by core shareholders Giorgio Armani and Milan investment bank Sige for a total of $35.2 million (56 billion lire).Of the latter, $32.1 million (51 billion lire) are credits Armani has agreed to defer to help bring Simint back to the black.
Simint also said it would restructure operations with the creation of a parent holding company, Simint SpA, and a wholly controlled industrial operating company, Simint Industriale SpA.
The restructuring plan, designed to streamline Simint's outsourcing network, is based on consolidated sales of about $125.9 million (200 billion lire), excluding any new license contracts it manages to conclude, the statement said.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye