ATHEX-listed Folli Follie Group is buying back its Australian distribution network from Luxury Retail Group (LRG), the second buy back deal that LRG has completed this year, following the sale of its Furla business to Furla Group.
The deal will see the Greek-based Folli Follie Group acquire 100 per cent of the distribution network built by LRG for an undisclosed sum.
Nelson Mair, managing director of LRG, said while they didn’t plan to sell both businesses so close to each other, the timing was in the best interests of all stakeholders.
“The sale allows us to concentrate on our exciting and rapidly growing Sneakerboy business and on our latest brand in Australia, Balenciaga” said Mair.
Mair said the company is working on plans at present to launch new luxury brands into this market, which they will announce in the coming months.
LRG launched Folli Follie in Australia in early 2015, quickly establishing the brand in three high profile locations (two in Melbourne and one in Sydney), as well as a strong online channel.
The business started by LRG for Folli Follie has created the foundation on which to build growth, consistent with what the brand has experienced in Europe and Asia.
Earlier this year the Folli Follie Group posted global revenue growth of 12.1 per cent to €1.3 billion, with earnings growing 10.1 per cent to €291.9 million (EBITDA).
“Folli Follie has been an important part of the growth of LRG as, along with the Furla business, we have demonstrated the value we bring to global brands wishing to establish themselves in this market,” Mair said.
The Folli Follie Group stated it will now establish a local headquarters in Australia to help facilitate its expansion plans. The company also intends to open a number of new stores in the coming years and there is now the potential to bring its jewellery and watch brand, Links of London, to Australia.