Lejaby Lingerie brand for Sale
The Warnaco Group has agreed to sell its Lejaby intimate apparel brand to Palmers Textil AG, valuing the business at a total of EUR45m.
The sale is subject to normal closing conditions and should be concluded during the first quarter of fiscal 2008.
The deal is the latest part of Warnaco’s restructuring program, under which it is moving to focus on expanding the company’s direct-to-consumer and international businesses.
In January, it sold the Anne Cole, Cole of California and Catalina swimwear brands for $26m to In Mocean Group as part of the same process.
Helen McCluskey, Warnaco’s group president of intimate apparel and swimwear, said “Today’s announcement completes the strategic realignment we announced in November, including the company’s exit from all owned manufacturing,” she added.
“We believe Warnaco is now well-positioned to focus our efforts on our brands and businesses with the greatest long-term potential for Warnaco and its stakeholders.”
Palmers Textil CEO Thomas Weber said the company was “thrilled” with the deal.
“We believe adding Lejaby, an iconic and well-established brand, to our portfolio will surely enhance our future growth opportunities,” he said.
Warnaco launched the restructuring program in November after reporting a 70% slump in third quarter earnings.