Sara Lee to sell Courtaulds apparel business to PD Enterprise
09 May '06
3 min read
As a result of continuing negotiations with the same buyer, in the third quarter of fiscal 2006, the corporation concluded that it would be necessary to leave cash and a higher amount of working capital in the business in order to complete the sale. This resulted in the recognition of a $33 million impairment charge in the third quarter of fiscal 2006 with no tax benefit.
The corporation will not receive a material amount of consideration as a result of the sale and will retain certain obligations of Courtaulds after the disposition; the most significant of these being the defined benefit pension plans that were under funded by $483 million at the end of 2005.
Sara Lee Corporation is a Chicago-based global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world.
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