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Radius Partners to acquire Ellen Tracy, fashion brand
14 Feb '08
2 min read
Liz Claiborne Inc announced that it has entered into an agreement with a group of investors including Radius Partners LLC, William Sweedler of Windsong Brands LLC, Barry Sternlicht and Marvin Traub to sell substantially all of the assets and liabilities of the Ellen Tracy brand for a purchase price consisting of a $27.3 million cash payment subject to inventory adjustment payable at closing, and a contingent cash payment of up to $15.0 million based on brand performance from 2008 through 2012.
Liz Claiborne Inc. will retain approximately $8.2 million in net working capital, excluding inventory. Liz Claiborne Inc. is in the process of reviewing the impact of this transaction to its results. The transaction is expected to close in the second quarter of 2008.
To ensure a smooth and orderly transition for retail partners, vendors and employees, Liz Claiborne Inc. has agreed to provide certain transition services to the new company.
Stuart Jamieson, Managing Director of Radius Partners LLC and Bill Sweedler, CEO of Windsong Brands, stated, "We are thrilled to have the opportunity to acquire such a notable and renowned fashion company with a 59- year heritage. Together, along with a strong team of employees, we will return the Ellen Tracy brand to the prestigious status it enjoyed throughout its history under the leadership of the legendary Herbert Gallen and Linda Allard."
Marvin Traub, President of Marvin Traub Associates, commented, "EllenTracy remains a very powerful brand with enormous support from consumers and retailers alike, and we look forward to building on its great foundation."
William McComb, Chief Executive Officer of Liz Claiborne Inc, commented, "Ellen Tracy is an iconic brand, and we are confident that the new owners will invest in this business and give it the care and attention it deserves. We are also thrilled that the substantial majority of Ellen Tracy employees will be retained as part of the deal."
Liz Claiborne Inc. will retain approximately $8.2 million in net working capital, excluding inventory. Liz Claiborne Inc. is in the process of reviewing the impact of this transaction to its results. The transaction is expected to close in the second quarter of 2008.
To ensure a smooth and orderly transition for retail partners, vendors and employees, Liz Claiborne Inc. has agreed to provide certain transition services to the new company.
Stuart Jamieson, Managing Director of Radius Partners LLC and Bill Sweedler, CEO of Windsong Brands, stated, "We are thrilled to have the opportunity to acquire such a notable and renowned fashion company with a 59- year heritage. Together, along with a strong team of employees, we will return the Ellen Tracy brand to the prestigious status it enjoyed throughout its history under the leadership of the legendary Herbert Gallen and Linda Allard."
Marvin Traub, President of Marvin Traub Associates, commented, "EllenTracy remains a very powerful brand with enormous support from consumers and retailers alike, and we look forward to building on its great foundation."
William McComb, Chief Executive Officer of Liz Claiborne Inc, commented, "Ellen Tracy is an iconic brand, and we are confident that the new owners will invest in this business and give it the care and attention it deserves. We are also thrilled that the substantial majority of Ellen Tracy employees will be retained as part of the deal."
Liz Claiborne Inc
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