US apparel group Fifth & Pacific Companies has agreed to terminate the lease on its flagship Juicy Couture store in New York in exchange for US$51m, increasing the expected proceeds from the sale of the brand to $175-185m.

The transaction is due to close in the first half of next year, at which time the store will shutter.

"We said on our third quarter earnings call that there was significant value in the 650 Fifth Avenue lease, and that proceeds from such a transaction could materially improve the total net proceeds resulting from our decision to exit the Juicy Couture business," said CEO William McComb.

Fifth & Pacific, which also owns the Kate Spade brand, last month agreed to sell Juicy Couture to Authentic Brands Group for US$195m.