Wilsons Sells Outlet Stores for $22M

Minneapolis Wilsons The Leather Experts Inc. on Tuesday said it sold its outlet stores and online retail assets to a subsidiary of sportswear and outerwear maker G-III Apparel Group Ltd. for about $22.3 million in cash, according to the Associated Press.

AM Apparel Group Inc., a unit of G-III, bought 116 outlet store locations, $18.5 million in inventory, distribution center operations, the Wilsons name and other related trademarks and trade names.

In a statement, G-III CEO Morris Goldfarb said the deal will allow the company to have a "significant" vertical retail operation.

Wilsons said the sale is part of its plan to obtain capital and use it to launch a new mall-accessories store concept.

Wilsons Leather will change its name to PreVu Inc.

Wilsons The Leather Experts has faced declining sales for years amid a weak retail environment. In March it said its fiscal 2007 net loss widened to $96.8 million.

In February the company said it would close the majority of its 260 mall locations and cut more than 1,000 jobs in an effort to improve performance.

Login or Register to post a comment.