Liz Claiborne Inc. is in talks with private equity firms to sell its Mexx brand, Reuters reported, citing Bloomberg. Leonard Green & Partners, Sun Capital and Golden Gate Capital are among the firms exploring the sale. According to Bloomberg, the Mexx business fetch about $100 million.
(Reuters) – Liz Claiborne Inc (LIZ.N), the owner of the Juicy Couture, Lucky Brand and Kate Spade chains, is making presentations to private-equity firms to sell its Mexx brand, Bloomberg reported, citing two people with knowledge of the matter.
Leonard Green & Partners, Sun Capital and Golden Gate Capital are among the firms that have explored a possible acquisition of the Mexx business, the news agency said.
Final bids for the clothing maker and retailer will be due in a few weeks with a probable sale in September, Bloomberg reported.
The three private equity funds were not immediately available for comment.
Liz Claiborne, which in April posted its 14th straight quarterly loss, has been suffering from weak sales at its Juicy Couture brand and from international sales at its Mexx Chains in Europe.
As part of its long-term effort to turn around its business, it has sold, licensed, or closed a host of underperforming wholesale brands in recent years to focus on four high-potential brands with their own retail stores.
The Mexx business may be valued at around $100 million, Bloomberg said and Liz Claiborne would seek to retain a small stake in the business.
Liz Claiborne could not immediately be reached for comment.
(Reporting by Siddharth Cavale in Bangalore; Editing by Bernard Orr)