Cenomi Retail is selling its fashion subsidiary to Abdullah Al Othaim: Cenomi Retail, the kingdom’s largest franchise retailer, has inked an SAR 120 mn agreement to sell 100% of its wholly owned subsidiary Innovative Outfit Trading Company to Abdullah Al Othaim Fashion Company, Cenomi said in a statement (pdf). The buyer is a subsidiary of malls operator Abdullah Al Othaim Investment.

What we know: Abdullah Al Othaim Fashion will acquire Innovative Outfit Trading along with the franchise rights for the brands and their corresponding 244 stories and assets for SAR 120 mn. Al Othaim Fashion will adjust the sale price for the value of the inventory on hand at Innovative Outfit when the transaction closes in 1Q 2024, the statement said. The transaction still needs approval from the General Authority for Competition (GAC).

Al Othaim is picking up the rights to 18 fashion brands, including Flormar, Oxxo and Monsoon, among others, as it looks to diversify its revenues beyond mall operations. Abdullah Al Othaim Investment company is the kingdom’s second largest mall operator and runs entertainment centers in the kingdom, GCC and Egypt. It has plans to enter the hospitality, sports, and artificial intelligence sectors.

Cenomi Retail is playing chess, not checkers: Cenomi Retail is in the midst of a turnaround bid that it says will see it focus on a subset of brands in fashion, electronics, and food and beverages. Cenomi Retail is the largest franchise retailer in the Kingdom and the only listed business of its type in the region. It was founded in 1990 by Fawaz AlHokair and is now active in 11 countries where it operates 1.8k stores across 100 malls.

By the numbers: The brands contributed a total of SAR 248 mn to Cenomi’s top line in 9M 2023, accounting for 5.7% of the company’s top line in the period.

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