USA: Casual Male To Sell Work 'N Gear Business
Under the terms of the deal - which still has to be approved by the United States Bankruptcy Court for the Southern District of New York - Sandy Point will acquire the inventory, fixed assets, intellectual property and certain other rights relating to the Work 'n Gear business, which provides workwear, healthcare apparel and uniforms.
Sandy Point says it will offer employment to all retail field employees and no less than 70 per cent of the headquarters' staff.
Casual Male expects to use the net proceeds from the transaction for the repayment of debt. Alan I Weinstein, chairman and chief executive officer of Casual Male Corp commented: "The divestiture of Work 'n Gear is an important part of Casual Male Corp's ongoing effort to restructure its business under Chapter 11." He added that the transaction will allow the company to strengthen its big and tall businesses - Casual Male Premier, Casual Male Big & Tall and Casual Male Outlet.
Sandy Point LLC, which is owned by Anthony DiPaolo, is a $40 million revenue company employing 250 people in the manufacture and distribution of a full line of work and outdoor boots and shoes.
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