Hampshire Group released a major update on its financial situation.
The fashion apparel provider on Monday announced that it reached an agreement with its primary licensor, Levi Strauss & Co., and its senior secure lender in regards to Dockers brand clothing production. Under this agreement, Hampshire Group will transition Dockers licenses back to Levi Strauss & Co. in addition to other product development, product processes and sourcing affiliations.
Hampshire Group will also liquidate all of its receivables and assets to pay off outstanding debts with Levi Strauss & Co. The lender said it will financially support Hampshire Group’s identified purchase orders completion. Due to the major transition, Hampshire Group revealed that it might enter into another agreement with Levi Strauss & Co. to fund other company operations. All turnover is expected to end in early October.
Read more at Sourcing Journal.