Acquire apparel and footwear from the bankruptcy of one of Russia?s largest sports brands
The Business

The Company plans to launch a new sports discount chain in Russia on the basis of the bankruptcy of one of the country?s largest sports brands, which is expected to be liquidated in July. The promoters believe that about 400,000 units of apparel and footwear with landed cost of around $10m and retail value of $30+ million could be obtained for approximately $2.0 million. The brand, retail operations, IT and a dozen or so retail stores could be acquired for an additional $1m.

In addition to acquiring stock and operations from the bankruptcy, in the future the Company will obtain close out merchandise from various sports and sports fashion brands that are not now present in Russia.

Market

The promoters believe the timing is appropriate for a discount retail concept in Russia, and in particular a dedicated multi-brand sports discount chain.

The Company is seeking an Investment of $4 million to acquire the assets from bankruptcy, and build the business in the first year forecasted with turnover of $10m and an EBIT of 15%.

Sector: Retail
Segment: Sports Apparel
Region: Russia
Financing Size: $1m to $5m
Contact: Philippe Der Megreditchian
Company: OLMA
Telephone: +33 6 03 88 30 13
Email: [email protected]