Home / Knowledge / News / Apparel/Garments / Hampshire Group to sell stake in Rio Garment
Hampshire Group to sell stake in Rio Garment
15
Apr '15
Hampshire Group said it has signed an agreement to sell the stock of Rio Garment S.A. to a group led by the current Rio management, which includes David Gren, the president of Rio.

Hampshire signed a deal to sell its stake for $6 million and additionally it will receive the existing accounts receivable and certain other assets of Rio totaling to approximately $5.0 million.

Rio is a Honduras-based apparel manufacturer, designing, sourcing and manufacturing knit tops for men, women and children, which are sold to retailers and distributors, primarily in the US.

CEO of Hampshire Group Paul Buxbaum said, “Our sale of the Rio Garment business will provide significant liquidity to our operations, while materially reducing the working capital requirements.”

“This decision will strengthen our financial position and allow management to focus on growing the core business, which includes Dockers and new brands such as James Campbell,” he added.

According to a Hampshire press release, the total consideration includes $5.0 million of proceeds payable at closing, of which approximately $2.2 million will be paid to Hampshire’s lender.

The deal also includes $1.0 million of deferred proceeds that will be paid one year after the transaction’s closing date, less certain potential adjustments.

Hampshire Group will receive approximately $5.0 million of Rio’s receivables and certain other assets, of which up to approximately $4.2 million will be paid to Hampshire’s lender.

In total from this transaction, Hampshire expects to pay down its revolving credit facility by $6.4 million and retain total pre-tax cash proceeds of $4.6 million.

The apparel marketer anticipates the transaction will close before the end of April 2015, which is subject to the satisfaction of customary closing conditions.

“Results related to the Rio business will be recast for prior periods and reported as discontinued operations on the company's financial statements,” it too added.

Hampshire Group along with its wholly-owned subsidiary, Hampshire Brands is a marketer of fashion apparel across a broad range of product categories, channels of distribution and price points.

It specialises in designing and marketing men’s sportswear to department stores, chain stores and mass market retailers under licensed brands, its own proprietary brands and private labels of its customers. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Feb 2020

Turkey's textile industry employs 1.67 mn: minister

Turkey's textile and garment industry currently employs around 1.67...

Pic: UNCTAD

Textiles | On 26th Feb 2020

Barbados unveils one-stop investment guide

As Barbados prepares to host the 15th quadrennial conference of the...

Pic: ModCloth

Retail | On 26th Feb 2020

Go Global Retail acquires ModCloth; Tiger Capital finances

With financing provided by Tiger Capital Group, Los Angeles-based...

Interviews View All

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Textile industry, Head honchos

Textile industry
Head honchos

GenNext is slowly but surely adapting to global trends and practices

C Kamatchisundaram, Voltas

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Yash Jain & Sanjeev Jain,

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Alessandro Marengo,

Alessandro Marengo

Founded in 1974, Italian firm Zaitex SpA is one of the leading suppliers...

Jason Remnant,

Jason Remnant

<div>Xaar plc develops digital inkjet technology; it designs and...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search