MELBOURNE: Mercury Brands Limited has stated it will remain as a brand license house, despite selling its fashion label assets to Australian Horizons Trading last week.
In a statement to shareholders, it said it is looking to commence trading on the Australian Securities Exchange once strategic business planning and regulatory commitments have been completed in coming weeks.
The company went into receivership in mid-September. As reported previously by ragtrader.com.au receivers secured the sale of more than 20 labels to Australian Horizons, run by ragtrade veteran Jeff Moss.
As part of the deal, Mercury Brands Group will receive a five percent royalty in perpetuity of all company owned brands, such as Rochford, Jimme Jams, Itsu, Milly and Billycart and two percent on all third party licensed brands such as No Fear, French Kitty and Crusty Demons, purchased by Australian Horizons.
The company stated that the ongoing royalty stream from Australian Horizons would benefit Mercury Brands Limited shareholders.
A number of Mercury Brands employees have agreed to jobs at Australian Horizons, while employee entitlements are expected to be paid for remaining staff.
A debt owed to the Commonwealth Bank is now expected to be retired by December 15.
For more information on the acquisition, pick up a copy of Ragtrader, October 23 edition.