London Fog Sells Pacific Trail
April 17, 2006-- Home Textiles Today,
London Fog Group, parent of major home textiles producer Homestead, has, as planned, successfully sold its Pacific Trail unit and had its debtor-in-possession financing provided in its “pre-packaged” Chapter 11 proceedings. Wachovia Bank is providing $40 million in DIP financing.
The company sold its Pacific Trail outerwear business and related brands to Columbia Sportswear for $20.4 million plus “the assumption of certain services,” the result of a public auction in late March.
Rugged-chic brand Columbia Sportswear seems a natural fit with the outdoorsy Pacific Trail. London Fog Group ceo David Greenstein said, “We believe the transaction is in the best interests of Pacific Trail and the talented team of professionals that lead the business. Columbia is the ideal company to continue building on the success of the Pacific Trail and related brands this season and going forward.”
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