Clothing maker Hampshire Group Ltd on Monday formed a special committee to consider the possible disposition of Hampshire Investments Ltd (HIL) which invests in domestic and international real property and other assets.

The South Carolina-based sweater producer said in a short news release it has retained an investment banker with real estate expertise and special counsel to advise it regarding the disposition of HIL.

"We continue to be focused on enhancing shareholder value … (and) believe that the company's current market capitalisation does not reflect the true value of the apparel business due to the nature of the HIL assets and the failure to achieve a return on those assets consistent with the return on the apparel assets," said chairman and CEO Ludwig Kuttner.