Mecox Lane Approves Spin-Off Of Apparel And Accessories Unit - Quick Facts

(RTTNews) - Mecox Lane Limited (MCOX), a Chinese multi-brand and multi-channel retailer, Friday 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.

The sale is pursuant to a share purchase agreement entered into as of August 8.

Fast Fashion China is a company controlled by the former chief executive officer of Mecox Lane.

Mecox Lane expects the deal 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 deal, 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.

Director and Chief Executive Officer Ingrid Wang said, "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. 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."