London Fog sells Pacific Trail, confirms DIP financing

By Staff -- Home Textiles Today, 3/30/2006 12:20:00 PM

New York – London Fog Group, parent of home textiles producer Homestead, has as planned in its "pre-packaged" Chapter 11 proceedings, successfully sold its Pacific Trail unit and will have its $40 million debtor-in-possession financing provided by Wachovia Bank.

The company sold its Pacific Trail outerwear business and related brands to Columbia Sportswear for $20.4 million plus "the assumption of certain services," the result of a public auction yesterday.

London Fog Group ceo David Greenstein said, "We believe the transaction is in the best interests of Pacific Trail … Columbia is the ideal company to continue building on the success of the Pacific Trail and related brands this season and going forward."