Global Brands Group will sell its Spyder apparel business to South Korean private-equity firm Alpha Vista for US$40 million.
During the year to December 31, Spyder achieved sales of around $70 million and is run by a standalone subsidiary of Global Brands, based in South Korea, with 260 staff.
Global Brands Group said in a stock-exchange announcement that the sale allows the company to focus on its remaining businesses in North America and Europe, along with its brand management division. With Spyder largely a design-through-to-retail business, the sale will also allow Global to specialise in wholesaling of footwear, apparel, accessories and sports and lifestyle gear.
Funds raised from the sale, scheduled to be completed on May 21, will be used to reduce debt.
“The company has been gravely affected by the combined and unprecedented impacts of technological disruptions, geopolitical shifts, escalating trade tensions, and the Covid-19 pandemic,” said chairman William Fung in the filing.
“To deal with these issues, the group is continuing with aggressive restructuring and divestment programs to streamline and consolidate operations in order to strengthen its balance sheet. The company believes the disposal of the Target Business is amongst essential actions that are needed to be taken as part of this ongoing process.”