With the Koizumi apparel group acquiring core brands from Renown Inc., Koizumi Co. Chairman Isamu Uemoto has expressed his confidence in the revitalization of the labels.
The group recently announced that it will purchase five brands from Renown, which has entered civil rehabilitation proceedings, including the D'urban men's brand.
"We want to improve the image of our entire group through the acquisition of the Renown brands," Uemoto said during an interview with The Yomiuri Shimbun on Wednesday. Uemoto is the chairman of Koizumi, a holding company of the group.
The Koizumi group has been in talks with Renown to acquire the brands and take over some of their stores and sales staff.
"If we reduce the number of stores to an appropriate level, and cut costs by utilizing our production and logistics capabilities, we'll be able to strengthen our structure," Uemoto said.
The spread of the novel coronavirus has made the business environment in the apparel industry more difficult.
"We need to differentiate [from other makers] through brand power and quality, but we can't grow a brand overnight," Uemoto said.
He said the acquisitions were an opportunity for the group to grow. "We wouldn't have a relationship with [Renown] if they hadn't filed for bankruptcy protection."
Koizumi Group had sales of 42.3 billion yen for the business year ending in February 2020. Casual clothing for general merchandise stores is the mainstay of the group's business, with internet sales of nearly 1 billion yen.
Uemoto also intends to use the acquisitions as an opportunity to strengthen the company's online shopping business, aiming to raise the percentage of online sales to about 10% of all sales in about two years.
Koizumi Co. owns Koizumi Apparel, which sells women's clothing mainly to general merchandise stores, and Oggi International Co., which handles women's and men's clothing for department stores, among others.
Koizumi has made a number of acquisitions in the past to expand its business. The firm bought the casual clothing brand Golden Bear from the now-defunct Kosugi Inc. in 2009, and the Tokyo-based nightwear brand Garconne in 2014.
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