Wensum Company has sold the business and certain trading assets of Wensum Clothing to Wensum Tailoring Limited.

It will receive approximately GBP450,000 (US$844,000) for fixed assets, other than land and buildings, stock and work-in-progress, the benefit of Wensum Clothing's existing orders and customer list, and certain intellectual property rights.

Wensum Company said that the loss attributable to the transaction, including write-offs and fees, will not exceed GBP375,000.

The company remains liable to discharge the balance of its creditors including an overdraft, which, at year-end stood at GBP1.3m. It will also continue to own Wensum Clothing's Norwich property, and has granted a short-term licence to the purchaser, while exploring alternative uses for the site.

Wensum Company reported exceptional non-recurring costs attributable to the factory closure in Norwich of GBP926,000, in the year to 28 January 2006. Wensum Clothing showed a net loss before taxation and exceptional items for the same period of GBP455,000.

The Wensum board announced in April that it had received an approach from an overseas group indicating that it was interested in acquiring the trading assets of its subsidiary.

The designer will continue to operate its Wensum Corporate division, which designs and manages corporate clothing projects for leading companies principally in the travel, retail and leisure sectors.