RNB Retail and Brands has entered into a deal to sell its JC subsidiary to Denim Island for an undisclosed sum.

The deal will see Denim Island, part of China-based Denim Island Group, take over all operations of the subsidiaries JC AB and JC Jeans Clothes. Thommy Nilsson, CEO of JC Group from 2002 to 2006, will take the role of chairman of the board of JC Group.

RNB Retail and Brands said it had conducted a strategic review of JC's operations and that a disposal was "the preferred alternative".

"We have carried out intensive work since March in relation to JC, which has involved refining and streamlining its operations," said RNB Retail and Brands CEO Magnus Håkansson. "Concurrently with this conversion work, we have conducted discussions with a number of interested parties regarding an acquisition of JC.

"I am happy that we have managed to find a good industrial solution in that Denim Island will now take over all operations in JC, while the sale is being conducted on financial terms that are acceptable to RNB."

JC employs around 386 staff and operates 112 stores. In the 2012/2013 fiscal year, it generated sales of SEK675m (US$101m) and an operating loss of SEK76m.