dELIA*s Sells Subsidiary
Jun 4th 2013 9:10PM
Updated Jun 5th 2013 6:15AM
dELIA*s is now a lighter company following the divestment of one of its brand lines. The company announced that it has sold its Alloy subsidiary to HRSH Acquisitions, which is conducting business under the name Alloy Apparel and Accessories. dELIA*s was paid $3.7 million in cash for the unit, and the buyer will assume roughly $3.1 million in liabilities.
The two parties also signed an agreement under which dELIA*s is to furnish "certain transitional services" to Alloy Apparel and Accessories for a maximum of one year.
In the press release announcing the transaction, dELIA*s quoted outgoing CEO Walter Killough as saying that the sale "will enable us to focus our efforts exclusively on our dELiA*s brand as we work to improve our product offerings and enhance the overall customer experience."
The article dELIA*s Sells Subsidiary originally appeared on Fool.com.Fool contributor Eric Volkman has no position in dELIA*s. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.