Marks & Spencer sells Brooks Brothers
Marks & Spencer has sold Brooks Brothers for £159m.
The US clothing chain, which has 155 American stores and a host of outlets in Japan, is being bought by privately owned firm Retail Brand Alliance.
The deal, which must be approved by regulators, is expected to be completed by the end of the financial year.
The sale is a further step in Marks & Spencer's restructuring programme - announced in March - to sell or close all non-strategic or lossmaking businesses.
This enables M&S to focus on its core UK businesses.
Although the sale of Brooks Brothers and another US offshoot of M&S, Kings Super Markets, have been delayed by the events of September 11, both are expected to be completed within the original timeframe.
Half-year operating losses at Brooks Brothers amounted to £2.6m.
The group made operating profits in the last two full years to March, making £16.3m in 2001; and £5.8m in 2000.
David Norgrove, Marks & Spencer's international director, says: "Brooks Brothers has a wonderful American heritage and a committed workforce, but it was not a good fit with Marks & Spencer's core business or strategic priorities.
"As the markets for both general trading and corporate transactions in the US remain very difficult, we are pleased to have come to this agreement. Retail Brand Alliance is in a better position to develop Brooks Brothers to its full potential."
