Mecox Lane Limited, a multi-brand and multi-channel retailer in China, announced that its board of directors has approved a spin-off of the Company's apparel and accessories business through the sale of Mixblu Limited and its subsidiaries to Fast Fashion China Limited, a company controlled by the former chief executive officer of Mecox Lane, pursuant to a share purchase agreement entered into as of August 8, 2014.
The deal is expected to close in September of this year, subject to the satisfaction of customary closing conditions specified in the share purchase agreement.
Prior to entering into the share purchase agreement, potential third party buyers were sought and an independent appraisal firm was engaged to assess the market value of the Company's apparel and accessories business.
"This is an important and exciting step in our plans for repositioning Mecox Lane as a dynamic retail brand and for leveraging our large membership base," said the Company's director and chief executive officer, Ms. Ingrid Wang.
"The sale of the Company's apparel and accessories business, which has consistently underperformed while yielding significant negative cash flows, will give us greater flexibility in growing our health and beauty business at a time of exciting opportunities in that sector. With that goal in mind, we will build the Mecox Lane brand and enhance its reputation by introducing a lifestyle of wellness and wellbeing to our customers and members with quality health and beauty products and personalized services."
