Juicy Couture parent company Fifth & Pacific has sold the young fashion lifestyle label to Authentic Brands Group for $195m (£121m).
The deal, which was signed on October 7, will see brand management firm Authentic Brands Group enter into a short-term licensing agreement with Fifth & Pacific.
The former owners will to continue to operate Juicy Couture retail stores until June 2014 in order to sell spring product at full margin. In the second half of the year Fifth & Pacific will sell-off the inventory as part of the final transition to Authentic Brands Group’s licensees.
Authentic Brands Group, a unit of private equity group Leonard Green & Partners, acquires the intellectual property assets of brands. In the past month it has snapped up Spyder Active Sports and Spyder.
Juicy Couture’s revenues has experienced a decline in sales over recent years with the brand reporting a 6.4% drop in sales to $498.6m (£310m) for the 12 months to December 29 2012. During the first half of this year, sales shrunk 10.7% to $192m (£120m).
Fifth & Pacific will now focus on its handbags and accessories brand Kate Spade, which reported a 64.3% rise in sales to $307m (£191m) during the first half of this year.