Liz Claiborne Inc. plans to sell its Enyce urban clothing brand to Sean “Diddy” Combs, the Grammy-winning musician and entrepreneur, for an undisclosed sum. Claiborne bought the denim-based streetwear line for $114 million from former Fila parent, Sports Brand International, in 2003.
“As we continue to implement our strategy of building powerful brands, we determined that we cant properly maximize the potential of Enyce,” said Claiborne CEO William McComb. “Enyce is a strong brand with a loyal customer following; however, the unsettled economic environment and our commitment to properly resource and focus on other brands in our portfolio contributed to this decision.”
The company said it was determining the impact of nonrecurring cash charges, which it said would be “insignificant” to cash flow, and non-cash charges related to the transaction.
While terms of the deal were not disclosed, sources told the Wall Street Journal that the purchase price was $20 million. The Enyce acquisition also includes all rights and trademarks for the RSRV mens line, which Claiborne launched in top urban specialty stores in September 2007.
In an interview with the Wall Street Journal, Combs said he plans to retool the brand, expand distribution and capitalize on his connections in the entertainment industry to promote it.
“In music, people know me as the King of the Remix, ” Combs said. “Now I am remixing this brand and making it a hit.”
Combs also said he will ensure that Enyce’s brand identity is distinct from the core Sean John brand, which sells higher-priced apparel. “We are going to take the next month to get in there and come up with a new strategy, and make sure there arent any conflicts,” Combs said.
