Cenomi Retail is selling more franchise rights to Abdullah Al Othaim Fashion as it pushes forward with a rationalization drive to focus on what it calls “champion brands.” The retailer added five brands to a sale agreement it inked back in December for additional consideration of SAR 219 mn, it said in a disclosure to Tadawul yesterday.

The five brands: Aldo and Aldo Accessories, Charles & Keith, Pedro and La Vie En Rose, which will be transferred to Al Othaim through two newly created companies. The sale also includes the brands’ 121 stores and inventory. Cenomi said Al Othaim will pay additional consideration for on-hand inventory when the stores are transferred.

The usual caveats apply: The transaction is still subject to approval from the General Authority for Competition, among other bodies.

BACKGROUND- Cenomi Retail finalized in February the strategic sale to Al Othaim of its fashion subsidiary Innovative Outfit Trading along with franchise rights for 16 brands. The sale brought in SAR 115 mn in proceeds, in addition to another SAR 4.7 mn from the transfer of inventory.

This has been in the works since last year: The initial SPA was signed in December 2023 entailing the transfer of the franchise rights of 18 brands in a SAR 120 mn transactions, before the owners of two brands rejected the transfer, shaving SAR 5 mn off the value of the original agreement.

It’s part of a repositioning by Cenomi Retail to optimize operations by downsizing its brand portfolio and focusing on the most successful names.

More to come? Cenomi Retail’s BoD has approved a program that will see it sell an additional 24 brands, including its Apple premium reseller Aleph and food brands, it said in a disclosure to Tadawul yesterday. It did not provide further details, but said the sale would generate revenues of SAR 650 mn.

Cenomi Retail is the largest franchise retailer in the Kingdom and the only listed business of its type in the region. The retailer is currently active in 1.01k stores across 326 malls in nine countries, with 55 brands spanning womenswear, menswear, kids and baby, department stores, shoes and accessories and cosmetics. This is in addition to operating a number of restaurants and coffee shops including Subway and Cinnabon.

IN OTHER RETAIL NEWS-

Thailand’s Central Group wants to snap up more shares in London’s Selfridges with PIF backing: Thai multinational retail conglomerate Central Group is reportedly in talks with the Public Investment Fund (PIF) as it looks to acquire more stakes from Austrian outfit Signa in UK department store Selfridges, Business Insider reports. The Thai investor is reportedly seeking to boost its stake to 60% after buying Selfridges with Signa for EUR 4 bn in 2022.

Where the PIF stands: Signa founder Rene facilitated a separate transaction that saw the PIF securing a 10% stake in a firm that also owns property used by the London high-end department store, according to Bloomberg.

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