NEW YORK, Oct 10, 2001/--- Arcadia Group, Britain's second-largest clothing retailer, is selling four of its chains of fashion stores for $51 million.

Racing Green, Hawkshead, Warehouse and Principles will be purchased by Rubicon Retail Ltd, a management buyout team led by Arcadia managing directors Peter Davies and Hilary Riva. Arcadia will hold an initial equity interest of 45.5 percent in Rubicon. The chairman of Rubicon will be Alan Peterson, formerly CEO of Meyer International.

Stuart Rose, CEO of Arcadia, said in a statement: "The sale of these brands to Rubicon is an important step in achieving our key goal of rationalizing the business portfolio and simplifying the business. It will enable Arcadia to concentrate on its six core brands, Dorothy Perkins, Tops, Miss Selfridge, Burton, Evans and Wallis."

Arcadia said the deal will be final no later than August 31, 2002, and the company will receive about $8.7 million in cash upon completion.

In April 2000, Arcadia, whose sales were dropping due to competition with discount shops, announced that it would close about 400 stores by February 2002. It closed all Principles for Men and Richards shops, and significantly decreased the number of Top Man, Burton and Miss Selfridge outlets. The company also cut 11 percent of its workforce (about 3,500 jobs) and pared down its menswear business.