SK Networks quits fashion business

By Park Jae-hyuk

SK Networks said Thursday it has sold off its fashion division to The Handsome, an affiliate of Hyundai Department Store.

The deal is estimated to be worth 330 billion won ($285 million) and will be finalized after a due diligence inspection.

The fashion division includes six licensed brands ― Tommy Hilfiger, DKNY, Club Monaco, American Eagle Outfitters and Canali ― and six original brands. It has about 800 retail outlets which are mainly in department stores.

About 400 employees including designers, merchandisers, marketers and manufacturers of the fashion division will be employed by The Handsome and their jobs will be secured at least five years.

SK Networks said it will focus on the rental and car businesses. The Handsome is expected to be Korea’s fourth largest fashion company if the deal is completed.