MONTRÉAL (BRAIN) — Dorel Sports has sold its Sugoi and Sombrio clothing brands to Louis Garneau Sports Inc., Dorel Industries announced Wednesday.
Dorel said it is exiting the performance apparel business to focus on bikes, parts, accessories and electric ride-ons.
“Despite the strong brands and products in Sugoi and Sombrio, apparel is not a strategic priority and has been a drain on Dorel’s financials. It is in the best interests of our shareholders for us to focus on our core businesses. Sugoi and Sombrio are a perfect fit for Louis Garneau Sports Inc. They specialize in cycling apparel and I am confident both brands will reinforce their excellent product offerings to retailers worldwide,” said Martin Schwartz, Dorel’s president & CEO,
Dorel Sports’ parent, the publicly traded Dorel Industries, expects to record an estimated $11 million of restructuring and other costs during the second quarter ending June 30, 2018, mainly related to non-cash charges associated with the write-down of trademarks and noncash inventory markdowns.
The company said the amount may be subject to change once Dorel finalizes its analysis of the transaction. Dorel will provide additional details and updates in its 2018 second quarter consolidated financial statements, which is expected to be issued on …read more