Carlsbad, Calif.-based Phoenix Footwear Group provided details Thursday about the sale of its subsidiary business, Chambers Belt Co., to Tandy Brands Accessories Inc.
The decision to sell came after Wrangler Apparel Inc. informed Phoenix it would not renew its licensing agreements with Chambers. Instead, Wrangler plans to take its belt and leather accessories operations in-house. These licenses had formed a significant portion of the Chambers business and were set to expire on Dec. 31, 2009, for the mass market, and on Dec. 31, 2010, for the Western category.
In a release, Phoenix said it expected to generate more than $14 million net cash from the sale, which would cover the company’s outstanding bank debt.
This news comes on the heels of the announcement that Phoenix will exit its Tommy Bahama license, which is expected to net the company an additional $2.5 million.