Parent company to divest Sharper Image for $100M

Person offering money
Sharper Image is the second brand that Iconix has sold this year.

Iconix Brand Group announced a signed agreement to sell its rights to the Sharper Image brand and all related intellectual property to ThreeSixty Group—the brand's largest licensee—for $100 million in cash.

ThreeSixty Group also purchased iconic toy brand FAO Schwarz from Toys R Us in late 2016.

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"Sharper Image is a strong and widely recognized brand, however, consistent with the vision we outlined during our recent investor day, Sharper Image did not fit into our go-forward strategy," said John Haugh, CEO of Iconix. "After careful consideration, we determined that we could better leverage our resources and generate greater returns by focusing on other areas of the business. This transaction generates a significant return on investment, and allows us to make progress on de-levering the balance sheet, which is a top priority."

Sharper Image is the second brand that Iconix has sold this year. The company plans to use any proceeds from the transaction to pay off $115 million of debt.

Earlier in 2016, Iconix was rumored to be one of two companies interested in acquiring struggling retailer American Apparel after its first of two bankruptcies.

RELATED: American Apparel draws acquisition interest