Australian firm Charles Parsons will buy the assets of collapsed sports and casual wear manufacturer Line7. Line7 was put into recievership in June, a situation which was blamed on the company not hedging itself against an aggressive drop in the Kiwi dollar, which impacted margins.
The textile wholesaler, which has been a Line7 supplier, said today it was buying 100 percent of the intellectual property related to Line7’s brand and all its registered trademarks globally. No value for the deal was disclosed.
Line7, best known for making clothing worn by America’s Cup sailors, was placed in receivership in July owing unsecured creditors $5 million. KordaMentha was appointed receiver and held a sale to clear stock with all stores now closed.
Charles Parsons said it would continue the ‘proud tradition’ of Line7’s brand, by ensuring continuity of supply to existing agriculture and marine customers.
Charles Parsons’ New Zealand CEO Peter Allard said:
‘We are really excited to have acquired this iconic NZ brand and we believe that there are tremendous synergies between the core values of Line7, the technical sourcing capabilities that we have on hand as a long term supplier to Line7, and the overall culture of our company,’
Ex-Line7 owner and director Ross Munro, who blamed foreign currency exposure and the recession for the receivership, said he was happy the firm had been bought by Charles Parsons which had a ‘positive vision’ for its future.