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VF Corp. to buy Rock & Republic
V.F. Corp. (NYSE: VFC), parent of The North Face and JanSport, announced that it is expanding its portfolio of brands to include Rock and Republic.
V.F. will only acquire the trademarks and intellectual property of the bankrupt Rock and Republic, and the business operations and retail store of the company will not be a part of the acquisition.
The acquisition is expected to close in the spring of 2011. However, the acquisition is subject to approval by the U.S. bankruptcy judge handling Chapter 11 petition. The hearing is scheduled to be held on Jan. 19, 2011. The company did not disclose the financial terms of the acquisition. V.F. Corporation stepped in as suitor after the deal between Bluestar Alliance and Rock and Republic Brand fell apart in mid-December. The acquisition will add a good contender for competition in the premium-denim field dominated by Los Angeles designers.
A fashion brand known for its denim, Rock and Republic filed a petition for bankruptcy protection in bankruptcy court in New York in April with an aim to lighten its liabilities on the balance sheet. The loan of $15 million from Los Angeles apparel executive Richard Koral, whose repayment was due on April 2, 2010, compelled the company to file for such a petition. Richard Koral is the only secured creditor of the company. Unsecured creditor loan is of more than $15 million.
V.F.’s share price closed Dec. 28 at $86.85, up $0.25, or 29 percent, from its previous close of $86.60.
–Compiled by Marcus Woolf
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