Lindex sells Twilfit underwear stores

AB Lindex said it has signed an agreement to sell its Twilfit underwear chain to a consortium led by Swedish retail clothing entrepreneur Anders Arnborger.

The deal will result in a one-off write-down of goodwill of 25 million kronor, and will also have a positive effect on earnings per share, Lindex said.

The sale means that Lindex will divest 38 wholly-owned Twilfit stores, 10 franchise stores and the Twilfit brand name. The transfer of the operation will take place on Sept 1, 2005.

Lindex will retain six Twilfit stores in Stockholm and Uppsala and transform them into Lindex stores, strengthening both the profitability and growth of its Swedish operations, it said.