Home / Knowledge / News / Apparel/Garments / Tom Tailor establishes JV with Sportina
Tom Tailor establishes JV with Sportina
15
Nov '10
The international lifestyle company TOM TAILOR is vigorously expanding its international retail network. The TOM TAILOR Group has established a joint venture with Sportina Bled D.O.O of Lesce, Slovenia as of October 1st, 2010. This strategic alliance is intended to drive retail expansion in Southeast Europe, including Croatia, Slovenia and Serbia.

As a result of this, TOM TAILOR will take-over the existing 23 franchise stores within the context of the joint venture and with the final aim of operating them as full own-retail stores. Five more retail stores will be added this year in cities such as Zagreb, Split and Ljubljana. Another 20 new stores will join them by the end of 2013. The take-over will result in the fashion company TOM TAILOR owning an aggregate of 147 retail stores per end of October 2010. This thereby entails a considerable growth of 51 retail stores since June 30th, 2010.

"For years, Sportina has been an ideal partner for our expansion offensive in Southeast Europe. The joint venture represents the next logical step in expanding synergies further, vigorously driving our internationalization and expanding TOM TAILOR's market position," says Dieter Holzer, Chairman of the TOM TAILOR Group.

TOM TAILOR holds 51 percent of the shares and Sportina has 49 percent. The purchase price of the 51 percent shareholding is €5 million. Of that total, €2 million is payable immediately and €3 million by December 31, 2013. Due to the controlling influence exercised by TOM TAILOR, the joint venture will be fully consolidated within the TOM TAILOR Group, with the minority interest reported separately. In 2009 the 23 franchise stores generated revenue of €8.4 million and EBITDA of €2 million.

Since the beginning of 2000, Sportina has been the exclusive distribution partner of the TOM TAILOR brand for all of southeast Europe and will continue to operate TOM TAILOR's wholesale business in the region. The purpose of the new joint venture partnership is to continually drive forward the strategic expansion of the controlled retail areas.

Sportina was previously the exclusive TOM TAILOR distributor for all of Southeast Europe, and will continue to handle the TOM TAILOR wholesale business in this territory. The two partners have been working together closely since 2000. The new partnership will steadily drive the strategic expansion of controlled retail space. It focuses mainly on opening retail and monolabel stores in medium-sized cities and metropolitan suburbs.

The Hamburg headquarters will oversee all the space management centrally, in order to position products to maximum effect and respond quickly to changes at the point of sale. The fashion company will be leveraging its partner's strength as a one-stop shop for all the market requirements for sustainable growth, from excellent market knowledge to optimal space procurement, through a select portfolio of trading partners. This move enables the lifestyle company, which has been listed on the stock exchange since March, to strengthen its strategy for long-term growth and expand its international networks even further.

TOM TAILOR HOLDING AG


Must ReadView All

UNIDO, eWTP discuss strengthening ties to back e-commmerce

Textiles | On 25th Apr 2018

UNIDO, eWTP discuss strengthening ties to back e-commmerce

United Nations Industrial Development Organisation director general...

Courtesy: HueTrap

Apparel/Garments | On 25th Apr 2018

Making sustainability affordable is a big challenge

In a lot of instances, being sustainable comes with an additional...

Courtesy: Formosa Petrochemical Corporation

Textiles | On 25th Apr 2018

Formosa to set up petrochemical plant in Louisiana

Formosa Petrochemical Corporation has selected St. James Parish in...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search