Mulberry Group plc, the British luxury brand, announces the signing of an agreement with SHK Holdings Limited 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 £4.6 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. £3.0 million during the current financial year.
* The total investment of £4.6 million will be £3.1 million from Mulberry, £1.5 million from SHK