Footwear firm K-Swiss has sold its Royal Elastics laceless fashion brand for an undisclosed sum to a company headed by its product design director.

The sale to Los Angeles-based REH includes the company's worldwide rights to the Royal Elastics brand, some inventory and selected other assets, resulting in a US$1.4m gain in K-Swiss's second quarter.

"We believe this new investment group understands the core essence of the Royal Elastics brand and are confident they will take the brand to a higher level," said K-Swiss chairman and president Steven Nichols.