SALE OF CREATIVE RECREATION

12 Months Ended

Dec. 31, 2018

SALE OF CREATIVE RECREATION [Abstract]

SALE OF CREATIVE RECREATION

19.   SALE OF CREATIVE RECREATION

In November 2017, the Creative Recreation brand was sold to a private investment group for approximately $4.4 million. The sale included the inventory, product designs and molds, trademarks and related intangible assets of Creative Recreation along with certain licensing and other contracts. The brand was sold to allow the Company to better focus on our more profitable core brands and allocate resources toward growth and development of additional opportunities with those brands moving forward. All of the assets included in the sale were transferred to the buyer during the fourth quarter of 2017. The Company will earn a fee for managing the Creative Recreation website during the transition of operations to the buyer. The fee is meant to offset the transaction costs of managing the site. We expect the site and its operations to fully transition to the buyer in the second quarter of 2018. As of December 31, 2017 there is a receivable for approximately $1.9 million due from the buyer related to assets acquired through the sale of Creative Recreation. There is also approximately $569,000 in accrued liabilities at December 31, 2017 related to future inventory that the Company is obligated to purchase from our manufacturing partners and provide to the private investment group. The Company incurred a $2.1 million loss on the sale of the Creative Recreation brand.

Sales of the Creative Recreation brand were reported under the wholesale reporting segment, except for Creative Recreation e-commerce sales, which were reflected in the retail reporting segment.