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Tommy Hilfiger USA to relocate showrooms for efficiency improvement
26 Oct '05
2 min read
Fashionable clothing marketer Tommy Hilfiger Corporation announced that its subsidiary Tommy Hilfiger USA, Inc has entered into an agreement for the sale of its building at 25 West 39th Street in New York City.
Under the terms of the agreement, the sale price will be approximately $53 million and is expected to result in a pre-tax gain to the Company of approximately $20 million. Subject to satisfaction of customary closing conditions, the transaction is expected to close near the end of November 2005. The Company will have the right to occupy the building through June 30, 2006.
The sale is the next step in the Company's consolidation of its New York City operations into a single headquarters location in the historic Starrett-Lehigh Building. In August 2004, the Company announced that it would relocate its New York City based design, production, merchandising, marketing, corporate and administrative personnel into one venue at the Starrett-Lehigh Building in New York City and sell its building at 485 Fifth Avenue.
The Company now plans to relocate its showrooms at 25 West 39th Street to the Starrett-Lehigh Building to increase efficiencies. The timing of recognition of the approximately $20 million gain referred to above will depend upon the Company's continuing involvement in the building. It is expected to be recognized by the first quarter of fiscal year 2007.
Fragrance and home furnishings seller Tommy Hilfiger Corporation, through its subsidiaries, designs, sources and markets men's and women's sportswear, jeanswear and childrenswear.
The Company's brands include Tommy Hilfiger and Karl Lagerfeld. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories and footwear.
Under the terms of the agreement, the sale price will be approximately $53 million and is expected to result in a pre-tax gain to the Company of approximately $20 million. Subject to satisfaction of customary closing conditions, the transaction is expected to close near the end of November 2005. The Company will have the right to occupy the building through June 30, 2006.
The sale is the next step in the Company's consolidation of its New York City operations into a single headquarters location in the historic Starrett-Lehigh Building. In August 2004, the Company announced that it would relocate its New York City based design, production, merchandising, marketing, corporate and administrative personnel into one venue at the Starrett-Lehigh Building in New York City and sell its building at 485 Fifth Avenue.
The Company now plans to relocate its showrooms at 25 West 39th Street to the Starrett-Lehigh Building to increase efficiencies. The timing of recognition of the approximately $20 million gain referred to above will depend upon the Company's continuing involvement in the building. It is expected to be recognized by the first quarter of fiscal year 2007.
Fragrance and home furnishings seller Tommy Hilfiger Corporation, through its subsidiaries, designs, sources and markets men's and women's sportswear, jeanswear and childrenswear.
The Company's brands include Tommy Hilfiger and Karl Lagerfeld. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories and footwear.
Tommy Hilfiger Corporation
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