Levi Strauss & Co. (San Francisco) has agreed to buy the operating rights to 73 Levi's and Dockers Outlet stores operated by Anchor Blue Retail Group Inc., which is filing for bankruptcy.
“We believe that this transaction will strengthen our ability to manage our brands' positioning effectively in the outlet channel,” says Robert Hanson, president of Levi Strauss Americas, according to Reuters.
Anchor Blue Retail is the holding company for two subsidiaries: It’s MOST Division holds the exclusive U.S. license for Levi's Outlet & Dockers Outlet Stores, operating 74 stores across the U.S., many of which Levi’s is hoping to purchase. The other Anchor Blue division sells casual apparel and accessories for teens through 177 stores in 12 states. The company says most stores will remain open, though it plans to close about 50 underperforming stores.
“The unprecedented sustained economic downturn and a related drop in consumer spending, especially in the teenage market, have had a severe impact on our financial performance,” Anchor Blue chief executive Thomas Sands said in a statement.