Lonely Levi's - Top news - Mass Media - Fashioner

JamilCo holding left the joint stock company with the american producer of jeanswear Levi Strauss & Co. This was announced by the americans in the annual report.

In december 2008 it purchased 51% of the shares of Global Denim, joint stock company with JamilCo, who developed Levi's distribution and retail in Russia (JamilCo has been an exclusive distrbutor of the company in Russia since 1988). The remaining 49% of the shares were bought out from the partner in september 2009, say the document. Levi Strauss spent around $32 mln. on consolidation of the assets, including $20 mln. cash payments.

There are 38 Levi's stores in Russia at the present moment.

Levi Strauss earlier informed that the company acquired a major package of shares in Global Denim for $3,5 mln and can buy out the partner's share in the joint venture on the put option which is going to close in five years after closing down the deal. JamilCo representatives could not comment on the deal.

«For JamilCo selling the share is not a loss but rather an advantage, as they managed to leave the project with large money», — believes Anna Lebsak Kleimans, Fashion Consulting Group director. According to her, the finnish Stockmann discovered themselves in similar situation hen thy lost Zara several years ago, when the owner of the brand - Inditex - decided to operate indepently, however the company received significantly less money. As from 2011 JamilCo will also lose distributionship of the brands of Guess corporation, who also intends to enter the market on their own.

JamilCo group is a Russian distributor of Burberry, Chaumet, Hermes, Timberland, Naf Naf and Chevignon.


	Tags: JamilCo, Jeans.


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Fashioner - guide to russian apparel, footwear and accessories market, retail and wholesale company data, market research and analysis, Go-to-Market strategy.