Athletic footwear producer K-Swiss Inc. has completed the sale of Royal Elastics, the company's laceless fashion footwear brand, to REH, an investment group led by Royal Elastics' LA-based product design director. The sale is expected to result in a gain of $1.4 million in the second quarter of 2009. Terms of the sale were not disclosed.

Steven Nichols, chairman of the board and president, said, "We believe this new investment group understands the core essence of the Royal Elastics brand and are confident they will take the brand to a higher level."