Röther Gruppe acquires part of Germany’s Escape Clothing
Röther Gruppe has agreed to buy a part of denim specialist Escape Clothing GmbH including the Timezone brand following a restructuring.
“Today we have signed an agreement with Röther Gruppe’s Ganemi GmbH, which will rebrand to 'TIMEZONE GmbH' in the future, for the takeover of significant parts of the business as part of an asset deal with economic effect as of 31 July 2019,” announced Escape Clothing GmbH.
The transaction was previously approved by the company’s creditors committee and lawyer Axel W. Bierbach from law firm Müller-Heydenreich Bierbach & Kollegen, Munich. Escape Clothing had talked with several potential bidders as part of a search for a buyer initiated by audit and consulting firm Mazars.
Röther Group operates 44 stores in Germany and Austria for its Röther fashion retailer, which generates annual revenues of around 280 million euros. The retailer is one of Germany’s leading clothing companies. By acquiring Escape and its flagship brand Timezone, the group will strengthen its expertise in a variety of new categories, including denim, chino trousers and tops.
Christian Stoffler, restructuring director at Escape Clothing and managing director at GL Change-Management GmbH, said: “In Röther Group we have found a strategic partner with a long-term vision who is an established player in the German fashion retail sector. It will drive momentum for the Timezone brand and help save most jobs, so I am sure we have found a sustainable solution for Timezone.”
Röther Group is planning to make Timezone more widely available by expanding its presence via its Röther retail chain. It will also continue to operate the Orwell brand, according to Escape Clothing.
Escape’s logistics division is not included in the transaction, with Röther Group planning to use its existing infrastructure to market the brands. And the company will seek to build synergies with the newly acquired business at its Michelfeld headquarters, it said.
Meanwhile, Timezone will relocate its offices to Brannenburg in the district of Rosenheim in Bavaria at the end of 2019. Up to 70% of Escada’s jobs will be safeguarded through the acquisition.
“The acquisition of Timezone, which is well established in the market, is part of our strategy to build our own brand portfolio, which is distributed through our own wholesalers in addition to our stores. Timezone, which focuses on jeans and chino trousers, perfectly complements the Röther Group's brand portfolio with the Haily's, Zabaione, Redraft, Suza and Ray brands, and makes our product and brand offering even more attractive,” said Michael Röther of Röther Gruppe.
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