Fashion retailer Supergroup is eying further expansion in Europe after acquiring franchise distribution partner CNC Collections BVBA.
The group now plans to open a number of owned and franchise stores in the Benelux and France region, where CNC operates.
CNC Collections BVBA and its subsidiaries, Snow & Surf BVBA, CNC Collections France SARL and SD Retail Netherlands, is the leading franchisee globally for the group’s popular Superdry brand.
It currently manages 29 owned and sub-franchised stores and has a number of new outlets in the pipeline.
A statement published today said: “Supergroup expects sales to exceed €40 million (£33 million) and consolidated profits to increase in the region of €8 million in the first full 12 months of ownership.
“It is also expected that the group will maintain a net positive cash position following the transaction.”
The deal will see CNC owner Luc Clément join Supergroup as Head of European Franchising, and the senior managers at the acquired company are expected to play a key role in the new set-up.
“Luc, together with the CNC operational team, bring with them significant retail, wholesale and franchise expertise from which SuperGroup will benefit as it continues expanding into these markets,” the statement continued.
Supergroup recently announced strong Christmas 2010 trading results, with retail sales rising 93.6 per cent year-on-year in the nine weeks to January 2nd.
Meanwhile its Superdry brand is now sold in more than 70 countries across Europe, Asia, Australia and the Americas.
Commenting on today’s announcement, CEO of Supergroup Julian Dunkerton said: “‘The acquisition of CNC is a major step in our European growth strategy, allowing us to capture additional gross profit in four key territories, driving our franchise acceleration and opening the possibility of company owned larger format stores in key shopping centres across Europe.
“I am delighted that Luc Clément will be joining us at this critical moment in our expansion. His experience will be invaluable in helping to drive our franchise operation to a new level.”