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U.K.'s Rockfish acquired by Korean firm for $6.3 million

Published: 17 Jan. 2024, 18:43 Updated: 10 Jun. 2024, 14:46

SEO JI-EUN
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Rockfish Weatherwear [SCREEN CAPTURE]

AU Brandz, the holder of Korean rights for the Rockfish Weatherwear, acquired the U.K.-based parent company, Zennar Limited, for approximately ￡5 million ($6.3 million).

The agreement, finalized on Jan. 10, involves the complete acquisition of Zennar by AU Brandz. Post-acquisition, AU Brandz' current director of strategic planning and operation, Kim Tae-kyun, will assume the role of CEO at Zennar.

The smaller Korean fashion company has held the Korean trademark and business rights for Rockfish Weatherwear since 2013.

Last year, AU Brandz reported sales of 56 billion won ($41.7 million) and an operating profit of 17 billion won. Rockfish Weatherwear's sales alone reached 51 billion won, more than doubling the 20 billion won from 2022.

"Currently, 80 percent of sales at the Seongsu and Hannam branches come from foreign customers, and lately we are receiving partnership proposals from fashion distributors in Japan, Taiwan and Hong Kong," Kim said. "Following the acquisition, we plan to reposition the brand with weather merchandising tailored to the U.K. market, and simultaneously expand global operations in the Americas and Europe."

The acquisition of the U.K. brand, known for its rainboots, follows a growing trend where Korean companies, seeing success in the domestic market, transition from paying royalties to overseas headquarters to taking full ownership of the brands. Similar instances include Fila Korea's acquisition of the Italian sports brand Fila in 2007 and Sungjoo Group's takeover of the German fashion brand MCM in 2005.

BY SEO JI-EUN [[email protected]]