IC Companys is selling four brands in order to focus clearly on the promising Premium brands

Mar 27, 2014, 13:08

Today IC Companys has entered into an agreement to sell its Mid Market division comprising of the four brands InWear, Matinique, Part Two and Soaked in Luxury as well as the store concept COMPANYS to DK Company. In the future IC Company will focus on the Premium segment in which the Company has realized strong growth and solid earnings for the past few years.

 

Today IC Companys has entered into an agreement to sell its Mid Market division comprising of the four brands InWear, Matinique, Part Two and Soaked in Luxury as well as the store concept COMPANYS to DK Company. In the future IC Company will focus on the Premium segment in which the Company has realized strong growth and solid earnings for the past few years.

 

For the past two years IC Companys has implemented several measures to simplify its complex business in order to ensure a strong business focus and improved earnings. Last year the brands Jackpot and Cottonfield were sold successfully to COOP. Therefore, the divestment of the Mid Market division should be considered a new strategic milestone achieved by IC Company who will focus completely on the Premium brands in the future.

 

Group CEO Mads Ryder commented on the reason for the sale:

” We wish to set the foundation for realizing to a larger extent that potential which our Premium brands hold – this must be achieved by having an even more clear focus. Instead of being good at many things, we must be the best at one thing.”

 

The Premium brands have generated good results

IC Companys’ Premium segment comprises of the three popular brands Tiger of Sweden, Peak Performance and By Malene Birger which combined have realized an average growth rate of 8% for the last three financial years and are still considered to hold large international growth potentials.

 

”We firmly believe that IC Companys will achieve better future results by focusing clearly on operating fashion and sports brands in the Premium segment. This constitutes an attractive market with strong growth rates and good earnings opportunities which has also proven to be the case with particularly Tiger of Sweden and By Malene Birger during the past few years.”

 

Continuous development of the Mid Market brands calls for a new owner

“We have spent many resources during the past few years on developing our Mid Market brands which today all are strong and well-operated brands with a high brand awareness in their core markets. Despite declining revenues, we have yet acomplished to improve earnings of this business segment. This is clearly reflected in our inte-rim report for H1 2013/14 where the Mid Market division generated an operating profit of DKK 21 million compared to DKK 11 million last financial year. However, additional investments and specialized capacity are needed in order to take the brand ambitions further. Therefore, we consider DK Company to be a more suitable future owner of the four brands as it has its strategic focus on the Mid Market segment.”, Mads Ryder explained.

 

A promising future for IC Companys

Mads Ryder is very content with the agreement with DK Company.

 

This marks yet another long step forward in the right direction. Having completed this divestment, we are now ready to lead IC Companys into the next stage. And as we are able to focus completely on the Premium segment in the future, we consequently have the best basis for making IC Companys a success – with future growth and improved earnings.”

 

 

 

 

 

 

FACTS:

Pursuant to the agreement DK Company has acquired IC Companys’ entire Mid Market division – both brands, commercial rights and stores. At the same time all employees in IC Companys’ Mid Market division will be transferred to the new owner.

 

IC Companys continues to own Tiger of Sweden, By Malene Birger and Peak Performance – all within the Premium segment. Furthermore, IC Companys owns Saint Tropez, which operates independently on its own platform, as well as 51 per cent of Designers Remix.

 

 

For further information please contact IC Companys’ communication agency KristiansenUlveman, attention: Stine Wind, mobile phone: +45 40451072, sw@kristiansenulveman.dk

 

 

IC Companys A/S

 

Contact information:

For further information please contact IC Companys’ communication agency KristiansenUlveman, attention: Stine Wind, mobile phone: +45 40451072, sw@kristiansenulveman.dk

 

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