Tailored Brands Inc. said Aug. 19 that it closed the sale of its corporate apparel business for $62 million.
The retailer of men's tailored clothing said it sold the business to a group led by its existing corporate apparel U.K. executive team.
The Texas-based company said it already received approximately $56 million of the transaction amount upon closing of the deal, while the remaining $6 million is deferred to the first quarter of fiscal 2020.
Tailored Brands President and CEO Dinesh Lathi said the move is part of the company's strategy "to focus on our core retail business in the U.S. and Canada while reducing debt."
The retailer intends to use the proceeds from the transaction for working capital and to repay its term loan.
Edwin Coe LLP and Vorys, Sater, Seymour and Pease LLP acted as Tailored Brands' advisers in the transaction, while Houlihan Lokey Inc. served as financial adviser to the company's board.
Tailored Brands' stock jumped as much as 8.89% to $5.51 following the announcement.
