Hyundai Department Store buys SK’s fashion businessHyundai Department Store will acquire SK Networks’ fashion business for 326.1 billion won ($281.4 million) and absorb all of its employees without any restructuring.
The retail giant signed a deal with SK Networks on Thursday to merge the latter’s 12 fashion brands into Hyundai fashion subsidiary Handsome, which it bought in 2012. Both acquisitions were led by Hyundai Department Store’s chairman, Chung Ji-sun, whose grand plan is to make its fashion business No. 1 in the industry.
Handsome’s sales this year are expected to reach 750 billion won, while that of SK Networks’ fashion business is an anticipated 600 billion won. Combined, their yearly sales will surpass 1.3 trillion won, making it fourth among Korean fashion companies after E-Land, Samsung C&T and LF.
Hyundai Department Store said the deal will create synergy by combining Handsome, known to be a high-quality local brand, and SK Networks, an importer of big-name foreign brands like Tommy Hilfiger, DKNY and American Eagle.