Global Brands has completed the sale of a significant portion of North American business to Differential Brands and has received around $$1.2 billion with the final consideration being subject to certain post-closing adjustments. This announcement follows the news in which Global Brands entered into a sale and purchase agreement with Differential Brands.

As part of the announcement, Bruce Rockowitz has stepped down as chief executive officer and will continue as non-executive vice-chairman, Global Brands. Rick Darling has been appointed as the new chief executive officer and executive director, Global Brands and will lead this transition, effective immediately.

"The completion of this transaction enables us to realize value for businesses that we have grown to more mature levels and at the same time focusing on areas that we have significant growth potential with improved operational efficiency and reduced working capital needs. It also gives us the ability to strengthen our balance sheet, and to improve value to our shareholders," said William Fung, chairman of Global Brands.

"With this very successful and strategic transaction completed, I have decided it is the right time to step down as Chief Executive Officer of Global Brands Group but will continue to serve on the main board of Global Brands Group and the boards of CAA-GBG, our joint venture with Creative Artists Agency and Seven Global, our joint venture with David Beckham. I am honored to have served as CEO since our listing in July 2014 and confident that Rick will lead Global Brands into a new and exciting future," said Rockowitz, vice vhairman of Global Brands.

"Today represents a new chapter for Global Brands. Coming out of this deal, we now have a very strong balance sheet and robust cash flow. We have emerged a more agile and focused company with great brands in our Men’s and Women’s Apparel and Footwear platforms to which we will be adding more brands in the future. Our CAA-GBG Brand Management business in the US, Europe and Asia is the largest of its kind in the world. I’m excited to take on a leadership role in this new era of Global Brands and look forward to working with our senior leadership team to continue to accelerate growth and deliver additional value to our customers, business partners and shareholders," said Darling. (RR)

Fibre2Fashion News Desk – India

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