RNB RETAIL AND BRANDS AB has entered into an agreement to sell the subsidiary JC
to Denim Island AB. Denim Island AB is a part of Denim Island Group owned by
Gordon Wu. The buyer Denim Island Group is a leading producer of denim products
as well as a wholesaler of a number of denim brands sold in Western Europe and
the USA. The agreement means that Denim Island AB will take over all operations
in the subsidiaries JC AB and JC Jeans Clothes Oy. Thommy Nilsson will be
appointed Chairman of the Board of JC. RNB will henceforth focus on development
of the operations within Polarn & Pyret, Departments & Stores and Brothers &
As previously communicated, RNB RETAIL AND BRANDS has conducted a strategic
review of the operations in JC. A disposal was the preferred alternative and
accordingly, RNB has now entered into an agreement to sell JC to Denim Island
Today, JC has a total of 386 employees and 112 stores (of which, 77 are
proprietary stores) and generated sales during the fiscal year 2012/2013 of SEK
675 M with operating income, excluding non-recurring items, of SEK -76 M. For
RNB, the transaction will have a neutral effect on the company’s cash flow and
generate a write-down of shareholders’ equity of SEK 100 million. RNB will
henceforth focus on development of the operations within Polarn & Pyret,
Departments & Stores and Brothers & Sisters.
Denim Island Group, based in Guangzhou in China, is owned by Gordon Wu. The
Group is a leading producer of denim products as well as a owner and wholesaler
of a number of denim brands sold primarily in Western Europe and the USA.
“We have carried out intensive work since March in relation to JC, which has
involved refining and streamlining its operations. Concurrently with this
conversion work, we have conducted discussions with a number of interested
parties regarding an acquisition of JC. I am happy that we have managed to find
a good industrial solution in that Denim Island will now take over all
operations in JC, while the sale is being conducted on financial terms that are
accetable to RNB,” says Magnus Håkansson, President and CEO of RNB RETAIL AND
“It is with confidence I return to my professional roots in JC. There is a huge
power in the JC brand – a leading market position in jeans, the service-minded
staff and the network of franchisees. Denim Island Group´s strong platform
within development and production of denim products have given JC the best
opportunities for a long-term sustainable turn-around and future development,”
says Thommy Nilsson, aceeding Chairman of the Board of JC.
For further information, please contact:
Magnus Håkansson, CEO, RNB RETAIL AND BRANDS,
+46 8 410 520 02, +46 768 87 20 02, e-mail: email@example.com
The information is such that RNB RETAIL AND BRANDS AB (publ) is required to
disclose in accordance with the Swedish Financial Instruments Trading Act and/or
the Swedish Securities Market Act. The information was submitted for publishing
on November 1, 2013, at 08:35 a.m.
RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing,
accessories, jewelry and cosmetics stores that focus on providing excellent
service and a world-class shopping experience. Sales are mainly conducted in
Scandinavia through the three store concepts Brothers & Sisters, JC and Polarn
O. Pyret, as well as through shops in the department stores NK in Stockholm and
Gothenburg. RNB RETAIL AND BRANDS has operations in 11 countries. RNB RETAIL AND
BRANDS has been listed on the NASDAQ OMX Nordic Exchange since 2001.
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