The Clothes show will not be taking place this year but SME will be "reviewing its strategic options for 2019 and beyond".
The show has been running since 1989 and most recently it powered the British Style Collective, a fashion take-over event in a number of locations in Liverpool in July 2017.
SME has partnered with The British Fashion Council for 25 years to work on aspects of London Fashion Week, including the creation of London Fashion Weekend which has been running for 15 years.
Kevin Costello, chief executive at Haymarket Media Group, explained that the brand is no longer a core part of the media company's strategy. Haymarket owns titles including Campaign, PRWeek, Four Four Two and Stuff.
Costello said: "The Clothes Show brand is an incredibly powerful one in the UK. It is, however, no longer core to Haymarket’s strategy as we focus on multi-platform brands and data-led solutions in our specialist market sectors.
"I’m delighted that we have found the perfect home for the brand with SME, who are ideally placed to develop the Clothes Show experience for 2019 and beyond."
SME managing director Tim Etchells added: "With our fashion-forward experience, matched to a property as unique and well-loved as the Clothes Show, I’m certain we will over time create a new experience making the brand more relevant than ever for consumers and retailers alike."
Financial terms of the deal were not disclosed.