British sportswear retailer JD Sports Fashion has formed a joint venture to enter the South Korean market.
It is partnering with footwear retailer Shoemarker and its J&S Partners unit, which trades as Hot-T . It has bought an initial 15 per cent of Hot-T fo r £ 5.5 million (US$7.4 million ) and has a call option to buy a further 35 per cent stake following the finalisation of Hot-T’s accounts for the year ending December 31.
JD said it intends to exercise the option and rebrand the Hot-T stores as JD, though the business will continue to be run by its existing management.
With 23 stores and a website, Hot-T had about £17.2 million in revenue last year.
JD executive chairman Peter Cowgill says the JV will further strengthen the company’s global presence, and gives it the opportunity to enter a market with more than 50 million people with a proven partner.
As well as the UK, JD has stores in Ireland, France and Spain.