Apparel supplier and retailer, Gazal Corporation, has upped its stake in struggling luxury handbag retailer, Oroton, confirmed in an announcement yesterday.
Gazal – which jointly owns and manages PVH Brands Australia, a joint venture company in partnership with PVH Corp – confirmed it has acquired a 7.35 per cent shareholding in Oroton at $1.00 per share.
The apparel operator said it noted the current strategic process in place for the ailing handbag retailer, which is negotiating with Westpac the terms of a $35 million facility that is due to expire in 2018, will receive up to $3 million credit support from its major shareholder and former director James Vicars, who holds an 18.2 per cent share.
“Gazal has no proposal to put to Oroton but may consider opportunities arising from the strategic process as well as other opportunities as they arise,” the company said in its statement to the ASX.
The company holds the licenses and operates PVH’s brands including Calvin Klein and Tommy Hilfiger as well as other licensed and JV owned brand names such as Van Heusen, Pierre Cardin, Bracks, Nancy Ganz, Spanx and Hold Me Tight. It also operates the Bisley Workwear brand.