Bled, 10 November (STA) - Slovenia's Sportina Group, which specialises in wholesale and retail of fashion brands, has established a joint venture with Germany's Tom Tailor Group aimed at expanding Tom Tailor's sales network on the markets of SE Europe.
The joint venture, Tom Tailor South Eastern Europe Holding, will manage Sportina's retail network, while Sportina will continue to be in charge for wholesale of the Tom Tailor brand on these markets, the companies said on Wednesday.
Tom Tailor, which runs 147 stores around the world, will first start expanding its sales in Croatia, Slovenia, Serbia, Bosnia-Herzegovina and Bulgaria, which will be followed by other countries in the region.
The German group will invest EUR 5m in the joint venture by 2013 thereby securing a 51% stake. Sportina's existing 23 Sportina's franchise shops will be incorporated into the joint venture.
These shops, which generated last year EUR 8.4m in revenues and EUR 2m in earnings before interest, taxes, depreciation and amortisation (EBITDA), will become specialised shops for the Tom Tailor brand.
Tom Tailor South Eastern Europe Holding will open this year five shops in Croatia's Zagreb, Split and Zadar and Slovenia's Celje and Ljubljana. Another 20 shops will be opened by the end of 2013.