Kellwood Co. is selling Smart Shirts as part of a long-term financial plan to focus on branded products.
The group has sold its profitable Smart Shirts division for $161 million, with includes selling manufacturing assets for $120 million to Youngor Group Co. Ltd. and the related real estate assets in Hong Kong for $41 million to Bright Treasure Development Ltd. The company plans to reduce debt and repurchase shares with the cash.
The manufacturer led a conference call Tuesday morning to provide an update on its five-year strategic initiatives, saying branded better-price and above business should soon equal its traditional non-branded moderate offerings.
Kellwood’s management did not take questions regarding its rejection of a $543 million bid by Sun Capital Securities Group LLC to buy the $1.96 billion, St. Louis-based vendor.
For complete coverage, see Wednesday’s issue of WWD.