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TFG to acquire UK clothing retailer Hobbs

RBR Staff Writer Published 08 November 2017

South African retailer The Foschini Group (TFG) has agreed to acquire Hobbs, a women’s clothing, footwear and accessories retailer based in London, UK, for an undisclosed amount.

TFG’s UK subsidiary, TFG Brands, will buy the entire share capital of Hobbs.

The deal is said to have been initiated, when TFG approached Hobbs in July and the owner of Hobbs, the private equity firm 3i wanted to sell the firm.

Presently, Hobbs has 140 outlets across the UK and is stacked across selected departmental stores in the world including Bloomingdales in the US and Wohrl and SinLeffers in Germany. Apart from this, Hobbs sells online in 49 countries.

The acquisition is expected to help Hobbs transform as an international brand and expand its footprint across several countries.

TFG CEO Ben Barnett said: “Hobbs is a strong British brand with rich design heritage. (Hobbs chief executive) Meg Lustman and her team have successfully repositioned and reinvigorated the brand, offering an excellent platform for further growth.

“We share their ambitions, not only in terms of maximising the success of their well-established UK presence, but also in their strategic approach towards leveraging the international appeal of the brand, via their physical store portfolio, carefully aligned concession partners and evolving e-commerce proposition.”

TFG stated that the acquisition of Hobbs will help it in strengthening its position in its home country and also internationally.

Hobbs reported 9% growth in sales to £119.5m at the beginning of this year and ian increase in gross profits from £70.1m to £76.2m.

Image: TFG to acquire British women’s wear brand Hobbs. Photo: Courtesy of Pong/FreeDigitalPhotos.net.