Iconix Brands Group Inc. (USA) has agreed to sell all of its equity interests in Umbro China to HK Qiaodan Investment for $62.5 million.
The deal includes the sale of the Umbro sports brand in the China, Hong Kong, Taiwan and Macau.
Iconix anticipates using the net proceeds from the sale to repay amounts due under its existing financing arrangements, and otherwise for general corporate purposes.
Prior to the corona virus outbreak, the company announced a net loss of $95.0 million in the fourth quarter that ended December 31, 2019.
For the fourth quarter of 2019, total revenue was $43.2 million, a 1% increase, compared to $42.7 million in the fourth quarter of 2018, according to the company’s financial statements.
The 22% increase in revenue in its women’s segment was principally as a result of a strong performance in its Danskin and Rampage brands and the impact of its Joe Boxer agreement with the new Sears, the company said in a statement.
For the twelve months ended December 31, 2019, total revenue was $149.0 million, a 21% decline, compared to $187.7 million in the twelve months ended December 31, 2018.
The decrease was primarily driven by decreases in our Women’s and Home segments as a result of the transition of several brands from their historical direct to retail relationships to non-exclusive arrangements, according to a company statement.
Due to the impact that COVID-19 is having across the globe, and the rapid and continuous economic developments, we are not providing guidance for fiscal 2020 at this time, the company stated.
