The Iconix Brand Group has agreed to sell its equity in Umbro China to HK Qiaodan Investment, generating cash of $62.5 million in the transaction, which is expected to close on or before Sept. 15. Umbro China is currently owned by a subsidiary of Iconix in Luxembourg. The deal covers the rights to the 100-year-old brand in Mainland China, Hong Kong, Macau and Taiwan. The proceeds will help reduce Iconix’ debt, which stood at $646 million at the end of last year. The group made a loss of $111.5 million in last year on revenues of $149.0 million, after a loss of $100.5 million in the previous year. Besides Umbro, Iconix owns many other brands including Danskin, Pony and Starter, and most of its revenues come from royalties on licenses.

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