5 Jun 2008 07:00
MARCHPOLE HOLDINGS PLC
("Marchpole", "the Company" or "the Group")
Exclusive licence agreement for Emanuel Ungaro
Marchpole Holdings plc (LSE: MPH), the fashion brand management group, is pleased to announce an exclusive long term licence and distribution agreement for Emanuel Ungaro in Korea and the extension of three sublicenses through its wholly owned French subsidiary JC Castlebajac.
The agreement has been signed with leading Korean distributor, Hanamel Group ("Hanamel") for an initial period of five years, extendable for a further five years. The contract is worth a guaranteed EUR 5.2 million over the first five years. Under the terms of the agreement, Hanamel will distribute the Emanuel Ungaro first line range through multi-brand stores throughout Korea and through a new flagship store which will open in Seoul in 2009.
Additionally, Marchpole has agreed a new sub-licensing and manufacturing agreement for Ungaro Homme with E-Sense. Under the terms of the five year partnership, E-Sense will distribute the range through multi-brand stores throughout Korea and open 17 dedicated shops in shops in the first year rising to 35 by the fifth year.
The Company continues to build upon its progress in 2007 and is pleased to announce the extension of two of the existing licensing agreements. Both contracts with Rossignol, the major skiwear company recently acquired by the Quicksilver Group,and Bragard, the major French uniform company that were due to expire in 2010, have been extended for a further five years to 2015.
Under the terms of the new agreement with Rossignol Marchpole is the exclusive distributor of the brand for the UK and Japan. Both contracts have been successfully renegotiated with an increase in the minimum annual incomes.
Marchpole, through its wholly owned subsidiary JC Castelbajac, have entered into a further agreement with Lee Cooper Inc. to supply a minimum of 100,000 pieces of denim wear per annum, which will be sold through their own outlets commencing with 181 stores worldwide in Spring 2009, increasing to 240 stores for Winter 2009 with guaranteed minimum annual incomes.
Michael Morris, Executive Deputy Chairman Marchpole Holdings plc said "We are delighted to sign this agreement with Hanamel Group that will extend the customer base of the popular Emanuel Ungaro range into a lucrative fashion market. Coupled with the new agreement with E-Sense, both partnerships are important steps in the international expansion of Marchpole into key luxury brand driven markets.
Additionally, I am pleased with the renewals of our contracts with leading fashion brands, Rossignol, and Bragard. The decision by Rossignol to choose Marchpole as the sole distributor of the label in the UK and Japan is testament to our proven expertise in marketing and managing brands on a worldwide platform. We look forward to working with Rossignol on strengthening the appeal of the brand in two key fashion markets. The contract with Lee Cooper will enable Marchpole to enter the lucrative global market in denim wear.
Marchpole remains committed to strengthening and broadening its portfolio and continues to make progress in securing further earnings enhancing agreements for the current financial year."
For further information please contact:
Marchpole Holdings plc
Michael Morris, Executive Deputy Chairman 020 7908 7777
Bell Pottinger Corporate & Financial
David Rydell / Emma Kent / Amy Rajendran 020 7861 3232
Note to Editors:
Marchpole Holdings plc ("Marchpole") is an international brand management group that designs, produces and sells clothing and accessories for ten globally recognised fashion labels. It operates in all of the world's main markets - UK, mainland Europe, Middle East, Asia and the USA
Its respected brands include Boateng, Emmanuel Ungaro, Ungaro Homme, Jean Charles de Castelbajac ("JCC"), Jean Charles de Castelbajac / Rossignol, Jean Charles de Castelbajac/Okaidi, Jean Charles de Castelbajac / New Era, JCDC/Lee Cooper and Homebody and Homemummy
Marchpole is renowned for its integrated approach to brand management, taking a brand from concept to design studio to the customer interface.
The Group has grown considerably in the past four years, from a licensee with one core licence (YSL menswear) - to today's international business that manages its brands across a multitude of clothing lines and accessories
Marchpole's acquisition (March 2006) of Moda America - the US licensee for leading designer Emanuel Ungaro - provided further growth opportunities in the UK and America and strengthened the Company's relationship with Ungaro
The acquisition also enabled the Company to launch the Ungaro brand, already established by Marchpole in Europe and Asia, into the US, Canada and South America. The acquisition has also enabled the Company to re-launch JCC into America.
In March 2007 Marchpole acquired 100% of Greenmark Limited, an importer and wholesaler of ladies shoes who currently supply in excess of 2.5 million pairs of shoes per annum.