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Koizumi Group to acquire brands from Renown

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With the Koizumi Co. apparel group acquiring core brands from Japanese apparel maker Renown Inc., Koizumi Co. Chairman Isamu Uemoto has expressed his confidence in the revitalization of the labels.

SEE ALSO : Renown to go into liquidation

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,  Chairman of Koizumisaid, said during an interview.

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 will be able to strengthen our structure,” Uemoto said.

The spread of the Covid-19 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 would not have a relationship with [Renown] if they had not filed for bankruptcy protection,” Uemoto continued.

Koizumi Group had sales of US$398 million 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 US$9.4 million.

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.

SEE ALSO : Stein Mart files for bankruptcy

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.

(Source: Japan News)

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