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Blue Holdings signs new license deal with Global Fashion Group

03 Apr '06

3 min read

High-end denim retailer Blue Holdings Inc has signed a letter of intent with Global Fashion Group, SA.

Under the terms of the letter of intent, a new joint venture company ('Newco') will have the right to produce, manufacture and distribute apparel and accessories for Blue Holdings' three principal brands throughout Europe and other territories. The deal will have a two-year term renewable for another 3 years if the licensee achieves established minimum net sales levels.

Based in France, Global Fashion Group was formed earlier this year by two proven and successful entrepreneurs, Frederic Chevalier and Christophe Bosc, to manufacture and distribute high-end apparel products throughout Europe and other territories.

Under the terms of the letter, Newco will pay Blue Holdings a fifteen percent royalty on all net sales of licensed products. In addition, Newco will be structured as a 50/50 joint venture between Blue Holdings and Global Fashion Group. Blue Holdings will license its three brands Antik Denim, Taverniti So & Yanuk to the joint venture. It will have decision making authority in the design, development, manufacturing and distribution of the brands and products.

The letter of intent provides for an upfront license fee of €200,000 and minimum payments of €13.4 million through 2010 assuming the proposed license agreement is renewed at the end of 2007.

Paul Guez, Chairman, CEO and President of Blue Holdings Inc said, "This partnership is a tremendous step forward for Blue Holdings. I have personally known Frederic Chevalier and Christophe Bosc for nearly 20 years and been tremendously impressed by their talent, fashion sense and business acumen.”

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