CAPE TOWN – The Foschini Group announced that it would be purchasing a UK based women’s wear brand Hobbs. They made this announcement on Tuesday.
In a market update, Foschini said that its UK subsidiary TFG brands had entered into an agreement to acquire their issued share capital of Hobbs.
They, however, would not say what this exercise would cost the group.
“Hobbs currently has 140 outlets comprising stand-alone retail stores and concessions in the United Kingdom and is stocked in selected departmental stores across the world, including Bloomingdales in the United States as well as Worhl and SinLeffers in Germany,” Foschinin said in a statement issued.
The group has also taken to selling its merchandise online in 49 countries, the group confirmed in a statement. According to this statement on its website, Hobbs is currently sitting at 219 stores and concessions across Europe, which includes the UK.
They also employ 1 000 people. The brand had a turnover of 110 million pounds (approximately R2 billion) in the 2015/2016 financial year.
The Foschini Group said this acquisition would assist in positioning as its international brand, as well as enhance its online presence.
Foschini’s shares were slightly firmer on the JSE at around 11:30 on Tuesday, having gained 0.6% to trade at R143.40 per share.