US: Brown Shoe sells Avia and Nevados brands for $74m
Brown Shoe said it will use the the proceeds from the sale to pay down debt
Footwear business Brown Shoe Company has sold its Avia and Nevados labels to brand acquisition and development firm Galaxy Brand Holdings for US$74m, and said it will use the proceeds to pay down debt.
“Although we were not actively marketing Avia for sale, it’s a great brand with a strong heritage that appealed to Galaxy Brand Holdings. As a result, they made an offer which we believe is in the best interest of our shareholders to accept,” explained Diane Sullivan, Brown Shoe president and CEO.
“We’re excited about continuing to expand and strengthen the Ryka brand, which is the most integral and relevant part of the ASG acquisition for Brown Shoe Company.”
As a result of the deal, Brown Shoe expects to incur a charge of $15-17m.
Galaxy Brand Holdings CEO Eddie Esses, meanwhile, said the company sees significant growth opportunities for the two brands in both domestic and international markets.
Brown Shoe, which bought Avia and Nevados as part of its American Sporting Goods (ASG) acquisition in February 2011, will keep the Ryka women’s athletic shoe brand along with others that were part of the deal. It sold the AND 1 brand, which was part of the ASG purchase, for $55m later that year.
Footwear firm Brown Shoe Company has lifted its full year earnings guidance after it returned to profit during the second quarter, helped by higher sales and margins....
- Supply chain takeaways from Sourcing at MAGIC
- Cotton supply chain transparency an ongoing issue
- No simple way to be sustainable, says SAC CEO
- Why voters don’t want more global supply chains
- What's 3D-printing doing for apparel and footwear?
- Li & Fung eyes supply chain speed in 3-year plan
- Zara USA faces US$5m deceptive pricing lawsuit
- EU clothing imports from China continue to plunge
- EU relaxes origin rules on Jordan clothing exports
- Nike and Crystal Group "doing well by doing good"
- Too Many Standards
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Under Armour, Inc. (UA) - Financial and Strategic SWOT Analysis Review
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras