Fashion group Liz Claiborne, owner of Juicy Couture, Kate Spade and Lucky Brand, has sold off a majority share in its Mexx brand in a move which will allow the company to focus on its core brands.
The company has signed a deal to sell the majority of Mexx to private equity firm The Gores Group for around $85m (£53m). When the deal is closed at the end of the financial year Gores will own 81.25% of a joint venture which holds Mexx’s European and Canadian operations.
The remaining stake will still be owned by Liz Claiborne and Thomas Grote will continue to be chief executive of the business. The $85m (£53m) deal includes $25m (£15m) in cash and $60m (£37m) in debt which will no longer be on Claiborne’s books.
William McComb, chief executive officer of Claiborne, said: “At the close of this transaction, we will be a more capital efficient, growth-oriented company and will be able to fully turn our attention to building and growing our core portfolio of global lifestyle brands.”
The brand has 169 stores, 85 outlets and 132 concessions.