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E-Land sells casual fashion brand for US$890 mln

All Headlines 10:34 September 02, 2016

SEOUL, Sept. 2 (Yonhap) -- South Korean fashion and retail conglomerate E-Land Group said Friday it has sold Teenie Weenie, a casual clothing brand, to a Chinese women's fashion brand for 1 trillion won (US$890.7 million) as part of efforts to cut its debt.

Teenie Weenie, a bear-themed casual wear brand owned by the group's Chinese arm, was sold to V-GRASS, an upscale Chinese clothing brand, 12 years after its operation in China.

Teenie Weenie has about 1,200 stores in major department stores and shopping malls in China, logging 90.3 billion won in net profit in 2015. It is one of the key assets of E-land's fashion business, with its operating margin at a whopping 34 percent.

The asset sale came as E-land has been grappling with worsening financial status, holding 4.5 trillion of the current liabilities that must be repaid within one year, its regulatory filing showed.

In March, E-land selected U.S.-based private equity firm KKR & Co. L.P. as the preferred bidder for the sale of its hypermarket chain, Kim's Club. The final agreement hasn't been reached yet between the two parties.

Shares of E-Land World, the group's holding firm, rose 1.11 percent as of 10:10 a.m. after the sales announcement.

E-Land sells casual fashion brand for US$890 mln - 1

ejkim@yna.co.kr
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