Marchpole to extend license agreements with Emanuel Ungaro
20 Aug '05
6 min read
Emanuel Ungaro S.A. has agreed to grant to the Company an extension of Moda's existing licence terms such that the licence agreement will now run to December 2012, in line with the Company's existing agreements, with the last collection under the extended licence being Autumn Winter 2012.
Reasons for the acquisition The 'Emanuel' label is well established in the US market with a strong customer base and forecast sales for 2005 of US$ 26.0 million. Moda expects to dispatch goods with a sales value of approximately US$ 14 million between August and the December year end. Combining the facilities, people and set up of the Moda business with Marchpole's existing sourcing abilities, design capability and infrastructure will create sales and margin growth. This expansion into the US market has long been a strategic goal for the Company.
Licence extensions and distribution agreements The licence extensions agreed with Emanuel Ungaro S.A. and announced today bring significant synergies to the Company. The existing Emanuel Ungaro and Ungaro collections which are currently sold into the UK, Europe, Middle East and Far East markets will now also be distributed into the markets of the USA, Canada and South America through the existing showrooms of Moda America LLC with effect from Autumn Winter 2006.
The well established relationships that Moda America LLC has developed with distributors in the USA can be leveraged to enhance promotion of Marchpole's other brands. In particular, the Jean-Charles de Castelbajac (“JCC”) brands which have a strong legacy in the USA on which to build. JCC has previously sold into prestigious retailers such as Neiman Marcus, Barneys and a number of independent boutiques, and this agreement will allow the Company to continue to develop these opportunities. The Company will also utilise the New York showrooms to sell the Emanuel Ungaro womenswear collections and accessories collections into the US market.
marketing@alchempro.com
