FLO buys Reebook’s Russian operations

MOSCOW

Reebok’s Russian division has been transferred to Turkish holding company FLO Retailing, TASS news agency reported on May 16, citing Russian daily Kommersant.

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The deal has already been finalized, with the company receiving more than 100 outlets, Kommersant reported, citing a source close to FLO Retailing.

FLO Retailing has reportedly taken control of Reebok outlets after signing an agreement with the chain to start manufacturing Reebok-branded products in Turkish factories for a number of countries.

The new owner, the source said, aims to rebrand the outlets while retaining the Reebok brand, according to the report.

Infoline-Analytics general manager Mikhail Burmistrov told the newspaper that the price of 100 branded stores was around 1.5 billion rubles ($23.26 million), but the amount of the transaction was three times lower. The expert does not exclude that the agreement to sell Reebok’s Russian activities was based on deferred payments.

According to Emil Orujlu, CEO of Damat-Tween in Russia, the deal between Reebok and FLO was struck at a discount.

According to him, the former owner of the brand, Adidas, has long considered its plans in Russia unsuccessful.

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Founded in 1960, FLO Retailing operates a network of over 100 stores in 21 countries. The company, which also has around 500 outlets in Turkey, sells more than 55 million pairs of shoes annually. He bought Lumberjack in 2012.

Economy,

James T. Quintero