Clothing company BIB Holdings Ltd is selling its apparel business as part of its restructuring plans.

The sale is a condition of the company's agreement to acquire Incode Corp, a privately-held technology services company.

The proposed sale of the apparel business will include the assumption of the operating assets and liabilities by the planned purchaser of the apparel business.

BIB chief executive Gail Binder said in a statement: "We believe our apparel operation will benefit from becoming a private company under the new leadership of Robert Sautter, who will become president and chief executive officer of the apparel company upon the completion of the proposed sale.

"The sale of the apparel company is necessary to the reinvention of our business and to the long-term benefit of our shareholders."

Earlier this week, BIB announced it is to acquire 100 per cent of the capital stock of Incode for 1 million shares of a new class of preferred stock in BIB - convertible into 200 million shares of common stock 18 months after closing.

The Incode acquisition is subject to various conditions that must be satisfied prior to closing.

BIB Holdings Ltd designs, manufactures, imports, sells and markets branded and non-branded apparel under the m.Sasson, Elk Canyon and New Terrain labels as well as private label.