American brand management company Iconix Brand Group has sold the Starter China business for US$16 million to an unnamed local investor.
The Starter divestment is the second Chinese transaction by the US company this year following an agreement reached in April to sell the Umbro China business for $62.5 million to HK Qiaodan Investment Limited. Both deals will be settled by September 15.
Iconix’s portfolio of international brands includes denim brand Lee Cooper, Mossimo, Mudd Jeans, Ed Hardy and Jay-Z’s streetwear label Rocawear. It also owns footwear brands including Ecko Unltd and ranges from Madonna.
The new owners of Starter in China will assume distribution rights for Mainland China, Hong Kong, Taiwan and Macau.
Funds raised from the sales are being applied to reduce Iconix’ debt and otherwise for general corporate purposes.