77Kids, the younger label of American Eagle Outfitters is changing it’s name to RUUM American Kid’s Wear.
American Eagle announced in May that they planned to eliminate their children’s clothing line, which debuted online 4 years ago. The company was purchased this past August by Ezra Dabah, former chairman and CEO of The Children’s Place. American Eagle will record an after-tax loss of about $35 million as a result of the sale. Mr. Dabah, through his Ezrani 2 Corp., paid 65 percent of the cost of the acquired inventory and all of the 77kids assets, including the related online business as well as a temporary license to use the 77kids name through Jan. 15, 2013.
If you are a fan of the label, as we are, now is the time to grab up liquidation savings until the new RUUM merchandise hits stores. We’re not sure what the new change in ownership will bring but we certainly hope that we can continue to see quality and stylish kids wear.