Billabong Announces Details On Sale Of West 49
Billabong announced today that it has entered into an agreement with fashion retailer YM Inc. to sell retail chain West 49 for approximately CAD $9-11 million. The sale of West 49 was first brought to the table by Billabong in May of this year, however the initial details have changed. At the time, Billabong estimated it would also sell six of its Billabong and two of its Element branded doors. As part of the terms of the deal with YM, Billabong will now retain those doors, and has also entered into an approximately CAD $34 million non-exclusive wholesale agreement with the company for the next two years.
Here are the details from Billabong’s Investor Relations page:
Billabong announces that it has entered an agreement to sell its Canadian retail chain, West 49, to YM Inc., a leading fashion retailer with a number of highly successful stores including Stitches, Urban Planet, Sirens, Siblings, Suzy Shier and Bluenotes.
As part of the sale the two parties have also entered into an initial two-year supply agreement. YM will purchase the 92 West 49 retail stores across Canada for approximately CAD$9 to 11 million.
Along with retaining six Billabong stores and two Element stories in Canada, Billabong has also entered into an approximately CAD$34 million non-exclusive wholesale agreement with YM over the next two years.
“The sale of West 49 is part of our broader strategy of simplifying our business and focusing on the core of what we do best, which is building strong global brands," said Neil Fiske, CEO of Billabong. "The supply agreement we've entered into ensures our products will continue to have a strong presence for consumers in that market."