Cenomi Retail signs variation agreement to sell 5 additional fashion brands

Logo of Fawaz Abdulaziz Alhokair Co. (Cenomi Retail)

Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) signed a variation of contract agreement with Abdullah Al-Othaim Fashion Co., to sell the franchise rights of five additional fashion brands, including Aldo and Aldo Accessories, Charles & Keith, Pedro, and La Vie En Rose, along with related assets.

In a statement to Tadawul, Cenomi Retail said the assets of the five brands would be transferred through newly established special purpose companies, specifically set up to enable the transfer to Al Othaim.

The first company is Fixed Feet Commercial Co., which will operate the Aldo and Aldo Accessories brand assets.

The second is Third Outfit Commercial Co., which will operate the assets of Charles & Keith, Pedro, and La Vie En Rose brands.

The agreement includes obtaining approval from the General Authority for Competition (GAC) along with other regulatory and commercial requirements, Cenomi Retail stated.

Upon completion, Abdullah Al-Othaim Fashion will acquire the franchise rights to these five brands, encompassing 121 stores and their related assets, for a total of SAR 219 million.

Additional consideration would be calculated for available inventory at the time of the deal closure and store handover, the statement added.

Cenomi Retail said the sale is part of its continuous transformation program, and its strategy to focus on key brands.

According to data available on Argaam, Cenomi Retail concluded, in February, a share purchase agreement to sell 100% of its subsidiary, Innovative Outfit Trading Co., to Abdullah Al-Othaim Investment’s wholly owned unit, Abdullah Al-Othaim Fashion.

The move follows obtaining the required approvals and completing the agreed-upon commercial and regulatory conditions.