London Fog sells Pacific Trail to Columbia Sportswear for $20.4m
31 Mar '06
2 min read
Rainwear and outwear maker The London Fog Group informed that as part of its financial restructuring pursuant to its Chapter 11 reorganization, it has agreed to sell its Pacific Trail outerwear business and related brands to Columbia Sportswear Company for $20.4 million plus the assumption of certain services.
The agreement is the culmination of a public auction held yesterday in which Columbia was the highest bidder. The sale is effective from March 31st 2006.
London Fog Group also announced that its $40 million in debtor-in-possession (DIP) financing provided by Wachovia Bank, NA has been approved by the Bankruptcy Court. The DIP financing is intended to support London Fog Group's working capital needs during its reorganization.
In an effort to secure sufficient working capital to properly fund its core operations, on March 20th 2006 London Fog Group filed a voluntary petition to reorganize under Chapter 11 of the United States Bankruptcy Code. The sale of Pacific Trail represents a major step in the company's plan to improve its financial position.
London Fog Group continues to operate its businesses under Chapter 11, as it implements its restructuring.
David Greenstein, CEO of the London Fog Group, said, "The divestiture of our Pacific Trail business represents an major step in our plan to financially restructure London Fog Group. We were very pleased by the broad interest in and active bidding for the Pacific Trail business.”
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
