Liz Claiborne Inc. said early Thursday that it reached an agreement with a group of investors to sell its Ellen Tracy brand for $42.3 million.
The investors include Radius Partners LLC, William Sweedler of Windsong Brands LLC, Barry Sternlicht and Marvin Traub.
For related story on plans for the brand, click here.
The deal involves selling "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 million based on brand performance from 2008 through 2012," Liz Claiborne stated.
Liz Claiborne added that it will "retain approximately $8.2 million in net working capital, excluding inventory."
Separately, Claiborne said it expects to post a fourth-quarter loss between 90 cents to $1 a diluted share. This compares with profits of 71 cents a year earlier.
Excluding special items, such as those related to the firm’s restructuring and divesture of businesses, excluding Ellen Tracy, earnings are expected to fall to 15 cents to 25 cents a share in the fourth quarter, from 94 cents a year earlier.
Sales for the three months came in at roughly $1.21 billion, down 3 percent from a year ago.
For the full year, the company is now expecting adjusted profits of $1.25 to $1.35 a share, down from previous guidance of $1.70 to $1.80.
Next year, adjusted profits are slated for $1.50 to $1.70 a share.
For complete coverage, see Friday’s WWD.