Mulberry Group PLC New Business Agreement (1890R)
June 13 2018 - 1:01AM
UK Regulatory
TIDMMUL
RNS Number : 1890R
Mulberry Group PLC
13 June 2018
Mulberry Group plc ("Mulberry" or "the Group")
New Business Agreement in South Korea
Mulberry Group plc, the British luxury brand, announces the
signing of an agreement with SHK Holdings Limited ("SHK") to form a
new majority owned entity to operate the Group's business in South
Korea.
-- The Group will own 60% of the share capital of a newly
created entity, Mulberry (Korea) Co., Ltd ("Mulberry Korea")
-- Mulberry and SHK will together invest GBP4.6 million* to
purchase assets and to develop the business
-- Current network consists of eighteen points of sale including
concessions, outlets and duty free
-- Korean mulberry.com site and omni-channel platform will form part of the new business
-- Mulberry Korea is expected to commence trading by Autumn 2018
THIERRY ANDRETTA, CHIEF EXECUTIVE OFFICER, COMMENTED:
"We are pleased to have signed an agreement with our
longstanding partner, SHK. The new business will further develop
the omni-channel platform in South Korea and focus on enhancing the
customer experience. Taking a direct participation in this
important market for luxury goods marks a key milestone in our
international development strategy. We look forward to celebrating
the new business with an exciting customer event in Seoul during
September."
INN SHICK LEE, CHAIRMAN, SHK, COMMented:
"We look forward to combining the excellent network established
in South Korea with the Digital and omni-channel capability that
Mulberry brings. The new partnership will offer the opportunity to
broaden the product range and provide greater service to the
customer. Mulberry is at an exciting moment and we are delighted to
enter this next phase to further develop this great British brand
in South Korea."
New Business Structure
Mulberry Korea will locate its head office in Seoul and will
manage all retail distribution and digital fulfillment for the
market. The new business will combine the Group's digital and brand
building capabilities with SHK's operational strength whilst
enabling greater flexibility and dynamism in merchandising.
The Group will have a 60% share in Mulberry Korea with the
remaining 40% owned by SHK. Mulberry Korea will be consolidated in
the Group's financial statements.
The new company is expected to be operational from Autumn 2018.
The Group anticipates incremental costs of c. GBP3.0 million during
the current financial year.
* The total investment of GBP4.6 million will be GBP3.1 million
from Mulberry, GBP1.5 million from SHK
FOR FURTHER DETAILS PLEASE CONTACT:
Headland
Lucy Legh / Emma Ruttle 020 3805 4822
Mulberry Investor Relations
Allegra Perry 020 7605 6795
GCA Altium
Sam Fuller / Tim Richardson 020 7484 4040
Barclays
Nicola Tennent / Stuart Muress 020 3134 9801
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END
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