;
Home / Knowledge / News / Textiles / Dawson continues to supply Dunelm with Dorma brand
Dawson continues to supply Dunelm with Dorma brand
08
Aug '08
Dawson International PLC announces that it has entered into an agreement to sell the Dorma trademark and associated rights to Dunelm Group plc (“Dunelm”) for a cash consideration (“the Consideration”) of £5 million.

The sale is conditional on the release of security over the trademark and associated intellectual property rights by the Company's lenders, which is expected within the next 14 days.

In conjunction with the sale agreement, the Company has entered into a trading agreement in terms of which Dawson will continue to supply Dunelm with Dorma brand and own-brand bed linen for an initial period of four years with certain minimum guarantees. Dunelm has also granted the Company a licence to use the Dorma brand until January 2011.

At the end of this period Dawson will cease supplying Dorma branded products to third parties other than Dunelm.

As a consequence of entering into this agreement the Company will incur costs of exiting its Dorma Branded business by January 2011. The final amount of the cash cost is uncertain due to the length of time involved but is currently estimated at not more than £3.3 million. The net consideration will be used to reduce debt. The Dorma Branded business currently employs approximately 420 staff, with the vast majority of these working in its retail concessions.

In the year ended 29 December 2007, the Dorma Branded business recorded an operating loss, inclusive of central overheads, of £3.6 million. The trademark and associated intellectual property rights, which are the subject of the sale, were carried at nil value in the balance sheet.

Andy Bartmess, Chief Executive commented:
“Dawson acquired Dorma Group Limited in February 2005 and restructured it into separate Dorma Branded and Private Label businesses. The overall results of Dorma Group have improved significantly since acquisition however while the Private Label business is now growing and trading profitably the Dorma Branded business, although much improved, continues to trade at a loss reflecting a decline in some of its traditional markets such as mail order and independent retailers.

This transaction enables us to focus on the growth area of the business and generates cash both through the net consideration for the brand and the liquidation of working capital. It also further strengthens our relationship with one of our major Private Label customers.”

Dawson International PLC


Must ReadView All

Japanese capital pouring into textile, garments in Vietnam

Apparel/Garments | On 12th Dec 2018

Japanese capital pouring into textile, garments in Vietnam

Several Japanese companies, including Itochu and Sakai Amiori, are...

Chanel bans fur, exotic animal skins in its products

Fashion | On 12th Dec 2018

Chanel bans fur, exotic animal skins in its products

French fashion retailer Chanel recently announced it will stop using...

Apparel, footwear brands failing to tackle exploitation

Apparel/Garments | On 12th Dec 2018

Apparel, footwear brands failing to tackle exploitation

Apparel and footwear firms are failing to tackle exploitation of...

Interviews View All

Representatives, Textile & apparel industry

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Jurgen Gauger, Spreadshirt

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Spokesperson, Hugo Boss

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Lin Jing,

Lin Jing

Jiangsu New Victor is a Chinese mechanical equipment manufacturing...

Ashish M Amin,

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

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

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


December 2018

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

news category


Related Categories:

Advanced Search