NEW YORK — Rio Sportswear’s deal to take over the CK Calvin Klein jeans business might not materialize, according to a market report Monday. Arnold Simon, Rio president, however, denied it.
The deal was expected to close this week.
“It seems to be moving ahead,” Simon said, when asked about the report. “We’re working on the structure of it. We’re very close to getting it finalized.”
Barry Schwartz, chairman of Calvin Klein Inc., speaking through a spokeswoman, declined comment.
In February, Calvin Klein and Rio entered a letter of intent for Rio to buy Calvin Klein’s women’s and men’s jeans division for about $35 million, plus ongoing royalty payments.
On March 13, Schwartz said he expected the deal to be consummated within 30 days.
In mid-March, as reported, Rio’s talks to be acquired by Oshkosh B’Gosh, which had been going on since September, were terminated. The Calvin Klein deal was cited as one of the roadblocks. At the time, Simon said he would still pursue the Calvin Klein deal since his $200 million company would enable him to finance it independently.