By Phil Wahba
Oct 7 Fifth & Pacific Cos Inc on Monday
said it has agreed to sell its once-popular Juicy Couture
business to Authentic Brands Group for $195 million to focus on
its fast-growing, higher-end Kate Spade brand.
Juicy, known for its velour track suits and urban feel, saw
sales plummet in recent years as the brand fell out of favor.
Attempts to turn around what was still Fifth & Pacific's top
selling brand last year failed.
Juicy revenue declined 6.4 percent last year to $498.6
million, on top of a drop in 2011. The deterioration worsened in
the first half of this year, when sales fell 10.7 percent.
In contrast, Kate Spade, a popular brand of handbags,
jewelry and shoes that competes with Michael Kors and
Coach Inc, posted a sales rise of 64.3 percent in the
"Ultimately, this is all about bringing Kate Spade to its
full potential," Fifth & Pacific CEO William McComb said of the
decision to sell Juicy. Details on restructuring and transition
costs will be disclosed in the coming weeks.
Authentic Brands, a unit of Leonard Green & Partners that
also includes brands such as Hickey Freeman, will get a $10
million guaranteed minimum royalty from Fifth & Pacific.
Centerview Partners and Perella Weinberg Partners advised
Fifth & Pacific Cos on the deal.
McComb said he had no update on any deal involving Lucky
Brand, the company's other major name. Sources told Reuters this
summer that Fifth & Pacific was close to selling the brand.
Fifth & Pacific shares were up 0.8 percent to $24.75