American Eagle sells 77kids line to former Children's Place CEO
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American Eagle Outfitters has sold its 77kids stores for an undisclosed amount to Ezra Dabah, the former chief executive officer of The Children's Place, another chain of kids' clothing stores.
South Side-based American Eagle announced in May plans to exit the young children's clothing line, which it launched in 2008.
As a result of the sale, the company will record an after-tax loss of about $35 million, which is at the low end of the previously announced range of $35 million to $50 million, according to an American Eagle government filing.
Mr. Dabah, through his Ezrani 2 Corp., paid 65 percent of the cost of the acquired inventory and assumed certain liabilities, according to the filing.
The sale included substantially all of the 77kids assets, including the related online business, and a temporary license to use the 77kids name through Jan. 15.
First Published August 10, 2012 11:43 am