FLO buys Reebook’s Russia operations

MOSCOW

The Russian division of Reebok has been transferred to the Turkish holding FLO Retailing, TASS news agency said on May 16, citing Russian daily Kommersant.

The transaction has already been completed, with the company receiving more than 100 retail outlets, Kommersant reported, citing a source close to FLO Retailing.

FLO Retailing reportedly gained control of Reebok retail outlets after signing an agreement with the chain to launch Reebok-branded product manufacturing in Turkish factories for a number of countries.

The new owner, according to the source, aims to rename the outlets while keeping the Reebok brand, according to the report.

General Director of Infoline-Analytics Mikhail Burmistrov told the newspaper that the price of 100 brand stores is around 1.5 billion rubles ($23.26 million), but the deal amount was three times less. The expert does not rule out that the deal to sell Reebok’s Russian business was based on deferred payments.

According to CEO of Damat-Tween in Russia Emil Orujlu, the deal between Reebok and FLO was concluded at a discount.

According to him, the previous owner of the brand, Adidas, considered its projects in Russia unsuccessful for a long time.

Founded in 1960, FLO Retailing operates a network of more than 100 stores in 21 countries. The company, which also has around 500 outlets in Turkey, sells more than 55 million pairs of shoes annually. It bought Lumberjack in 2012.