Dawson completes Dorma sale

CASHMERE company Dawson International has confirmed the sale of its Dorma bed linen brand for £5m.

Yorkshire textile company Leeds Group acquired a 28.8% stake in loss-making AIM-listed Scottish cashmere operation Dawson in May.

Dawson, which made pre-tax losses of £1.6m last year, said last month it was to sell the rights to its Dorma bed linen brand to Dunelm Group which will allow it to pay off debt.

Dawson originally bought Dorma three years ago in a £9.5m deal but it suffered from declines in the mail order and independent retailing sectors.

Dawson said in a statement that the sale of the Dorma trademark and associated rights to Dunelm Group had been completed.

Dawson has been granted a licence to use the Dorma brand until January 2011 and will be able to sell Dorma branded bed linen for four years.

Leeds Group’s main investor is Swedish corporate investor Peter Gyllenhammar.