VF Corporation has signed a definitive agreement to sell its contemporary brands businesses to Israeli group Delta Galil Industries. Brands included in the transaction are 7 for All Mankind, Splendid and Ella Moss. VF’s chairman and CEO Eric Wiseman has reportedly said that since the beginning of this year, they wanted to reorganize the composition of their business portfolio. In 2015 the Contemporary Brands division had lost 14 per cent sales totaling $344 million compared to the $400 million of 2014. In 2016 first quarter revenues were down 15 per cent to $74 million, including a 53 per cent decline in operating income.

For the transaction, which is expected to close in the third quarter of this year, the selling price would be $120 million. From this operation Delta Galil expects to increase sales to $300 million.