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M&S sells Brooks Brothers
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November 23, 2001: 3:41 a.m. ET
UK retailer sells U.S. menswear business for $255 million to Retail Brand
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LONDON (CNN) - Marks & Spencer has agreed to sell Brooks Brothers for $225 million, a third of the price Britain's biggest clothing retailer paid for the business.
The sale of U.S. men's clothing retailer Brooks Brothers to Retail Brand Alliance is part of M&S's plans to sell loss-making and international businesses and focus on the UK. M&S paid $750 million in 1988 for Brooks Brothers.
Once the icon of UK clothing shopping M&S lost its way as women deserted the company's sales floors and competitors squeezed M&S on quality, price and prestige labelling.
Chief Executive Luc Vandevelde announced in March plans to axe 4,390 jobs and return $2.9 billion to shareholders with the sale of property and businesses.
"Brooks Brothers has a wonderful American heritage and a committed workforce, but it was not a good fit with Marks & Spencer's core business or strategic priorities," said director David Norgrove.
"As the markets for both general trading and corporate transactions in the U.S. remain difficult we are pleased to have come to this agreement."
Brooks Brothers made an operating loss of $3.7 million in the first six months to September 30, compared with an operating profit for the full year to March of $24.1 million, M&S said.
The company hopes to sell its other U.S. operation, Kings Super Markets stores, by Christmas.
Retail Brand, controlled by Claudio Del Vecchio, whose family controls Luxottica SpA, the owner of Ray Ban, already owns Casual Corner, a women's speciality retailer; Carolee, a jewellery designer for department stores and speciality stores; and Adrienne Vittadini, a designer of women's clothing and accessories. 
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