The French group had already sold the rights to its Millet brand for the Korean market to its local licensee, Edelweiss, a few months ago for €5.8 million to help improve its financial position ahead of an injection of new equity. It is now doing the same thing for two other brands, Lafuma and Eider.
Company officials declined to say how much the group is getting this time, except to indicate that Lafuma was generating more revenues than Millet in Korea, and Eider less. They said the transaction will allow the company to return to a more acceptable debt/equity ratio of around 60 percent for the current financial year.
The new Korean brand owners are LG Fashion for Lafuma and K2 for Eider. LG Fashion, a large publicly quoted company that recently became the Korean licensee of Intersport International, launched the Lafuma brand on the national market in 2005. K2 has nothing to do with the American ski company by the same name.