Following through on its March announcement to focus sales on a mall-based accessories concept, Wilsons The Leather Experts has sold its e-commerce business and outlet stores to AM Retail Group for $22.3 million.
Wilsons The Leather Experts was apparently not the e-commerce experts. The leather clothing and accessories retail chain has closed the book on its web sales and outlet stores by selling all related assets for $22.3 million to AM Retail Group Inc., a wholly owned subsidiary of G-III Apparel Group Ltd., a New York apparel company.
AM Retail Group purchased all inventory, fixed assets and intellectual property related to Wilsons Leather’s outlet store and e-commerce divisions, along with the leases associated with Wilsons Leather’s 116 outlet stores, Wilsons says.
The sale is part of Wilsons Leather’s previously announced strategy to obtain capital to be used in the launch of its new mall accessories “studio” store concept in its remaining 100 mall stores. Wilsons, No. 496 in the Internet Retailer Top 500 Guide, also plans to change its name to PreVu Inc.
Wilsons reported e-commerce revenue of $7 million for 2007, up by 6.5% compared with about $6.6 million in the prior year.