DESIGNER HOLDINGS COMPLETES ITS BUYOF CALVIN KLEIN STORES
NEW YORK — Designer Holdings Ltd. completed its acquisition of 14 of the 15 Calvin Klein Outlet stores in the United States, as well as rights to open additional Calvin Klein Outlets in the U.S., Canada and Mexico.
Calvin Klein Inc. retains its Collection Outlet Store located in Secaucus, N.J.
Designer Holdings will assume the existing leases of Calvin Klein Outlets and purchase existing inventory for about $4 million and certain fixed assets for approximately $500,000.
The company has also acquired exclusive and non-exclusive licensing rights to sell Calvin Klein products including jeanswear, underwear, bridge apparel, collection, fragrance, hosiery, accessories, home collection, and other products sold under the CK/Calvin Klein and Calvin Klein labels.
Designer Holdings develops, sources and markets designer sportswear collections under the Calvin Klein Jeans, CK/Calvin Klein Jeans, CK/Calvin Klein Khakis label. Designer Holdings Ltd. also is the holder of the license to manufacture and distribute the DKNY Jeanswear line.
Designer Holdings said that it was planning to limit the expansion of the Calvin Klein outlets to 50 to 60 units over the next five years.