Retailer Marks & Spencer (M&S) offloaded US menswear unit Brooks Brothers for $225 million cash today in its latest restructuring step to focus on its core British business.
The sale, for one-third of the price M&S paid in 1988, was to privately held US speciality retailer Retail Brand Alliance. It is controlled by Mr Claudio Del Vecchio, whose family controls Luxottica, the owner of Ray Ban.
M&S said in a statement it hoped to sell its other US operation - 27 Kings Super Markets stores - by Christmas despite delays caused by the events of September 11th.
International director Mr David Norgrove said although Brooks Brothers had a wonderful American heritage and a committed workforce, it was not a good fit with Marks & Spencer's core business or strategic priorities.
Brooks Brothers has struggled to define itself in recent years amid the trend toward casual dressing, analysts said.
Like its parent M&S in Britain, it has had to balance becoming more hip without alienating its traditional customer base.
M&S's restructuring has been welcomed by investors. Its share price closed at 334 pence sterling yesterday, just below a recent 26-month high and valuing the company at £9.3 billion sterling.
Based on that close, M&S had outperformed the retail sector by 58 per cent this year.