15th Jul 2008 16:27
French Connection Group plc ("French Connection" or "the Group")
Japan Joint Venture
French Connection today announces that it now owns 100% of French Connection Japan Inc. ("French Connection Japan") having taken back the remaining 50% stake it did not previously own from Renown Inc. ("Renown"). The consideration for the transaction has been satisfied by the waiver of a loan due to Renown by French Connection Japan of 420 million Yen (approximately £1.98 million) and a cash payment to the Group of 50 million Yen (approximately £0.24 million).
French Connection Japan operates 21 French Connection branded retail outlets in Japan under a licence from the Group. As at 31 December 2007, its financial year end, French Connection Japan had gross assets of 977 million Yen (approximately £4.62 million). Turnover in the year ended on that date was 2,078 million Yen (approximately £8.9 million) and the net loss for the year was 324 million Yen (approximately £1.40 million). Within those results, French Connection Japan paid licence royalties and buying office commission to the Group of 163 million Yen (approximately £0.7 million).
French Connection will now be directly involved in the day-to-day management of French Connection Japan and is targeting to move it into profitability within three years.
Stephen Marks, Chairman & CEO, said "I believe Asia is a very important market and presents a great opportunity for French Connection. This move consolidates our position in one of the most important markets in the region".
Enquiries:
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Brunswick |
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Tom Buchanan / Deborah Spencer |
Tel: +44(0)20 7404 5959 |
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