Iconix Brands Group Inc has entered into an agreement to sell all its equity interests in Umbro China to HK Qiaodan Investment. The deal earned the New York-based brand management company $62.5 million and includes the sale of the Umbro sports brand in the People’s Republic of China, Hong Kong, Taiwan and Macau.
The Umbro China sale is anticipated to close on or prior to September 15, 2020. The company, which owns brands like Joe Boxer, Danskin and Lee Cooper, anticipates using the net proceeds from the sale to repay amounts due under its existing financing arrangements and otherwise for general corporate purposes.
Last month, the company announced a net loss of $95.0 million in the fourth quarter. In the full fiscal year 2019, Iconix’s revenues totaled $149.0 million, a 21 percent decrease from $187.7 million in the previous year. Annual net loss was $111.5 million, or $10.56 per diluted share, compared to a loss of $100.5 million, or $14.93 per diluted share, in fiscal 2018. Due to uncertainty caused by the ongoing Covid-19 pandemic, Iconix has not yet provided financial guidance for fiscal 2020.