Mulberry Group PLC Joint Venture Agreement in Japan (3773K)
07 July 2017 - 4:00PM
UK Regulatory
TIDMMUL
RNS Number : 3773K
Mulberry Group PLC
07 July 2017
Mulberry Group plc
Joint Venture Agreement in Japan
Mulberry Group plc ("the Group"), the British luxury brand,
announces the signing of an agreement with Onward Global Fashion
Co., Limited ("OGF"), a Japanese registered entity, to form a new
50:50 joint venture company to operate its business in Japan. OGF
is a wholly owned subsidiary of Onward Holdings Co., Limited, a
company which is listed on the Tokyo Stock Exchange.
-- The new company, Mulberry Japan Co. Limited ("Mulberry
Japan"), will be headquartered in Tokyo
-- Mulberry Japan will develop the Group's retail, digital,
omni-channel and wholesale business in the Japanese market
-- The Group and OGF will be equal partners, each owning 50% of
the share capital of Mulberry Japan
-- The Group and OGF will invest a total of GBP2.8 million
(Yen400 million) in Mulberry Japan's share capital to provide funds
to develop the distribution network and build the brand's presence
in Japan
-- Mulberry Japan will benefit from the Group's digital and
brand building capabilities coupled with OGF's experience in
distributing luxury brands across Japan
The joint venture will advance the Group's strategy of directly
participating in key international luxury markets while continuing
to refine its positioning in the UK.
THIERRY ANDRETTA, CHIEF EXECUTIVE OFFICER, COMMENTED:
"I am pleased to announce our partnership with OGF in Japan, a
market where we see significant growth opportunity for Mulberry. In
OGF we have a partner which has extensive luxury goods experience
and a robust infrastructure which will enable us to advance our
international retail and omni-channel strategy in this key
market."
Joint Venture Structure
Mulberry Japan will manage all retail, digital fulfillment and
wholesale distribution for the Japanese market. A general manager
has been appointed to build a local team, based in the Tokyo head
office. Mulberry Japan is expected to be operational from late
2017. The distribution platform currently consists of a new
Mulberry store in Tokyo Ginza G6, two concessions (one in Tokyo,
one in Osaka), wholesale and the Group's mulberry.com site.
The joint venture will be accounted for as a minority interest
in the Group's financial statements. The Group anticipates the
investment in Mulberry Japan to be profit-neutral at Group level
during the initial two-year development phase.
FOR FURTHER DETAILS PLEASE CONTACT:
Mulberry Investor Relations
Allegra Perry 020 7605 6795
Bell Pottinger
Daniel de Belder / Elizabeth Snow 020 3772 2561
GCA Altium
Sam Fuller / Tim Richardson 020 7484 4040
Barclays
Nicola Tennent / Thomas Dugarin 020 3134 9801
This information is provided by RNS
The company news service from the London Stock Exchange
END
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