International retail group Folli Follie has bought back its Australian distribution network from Luxury Retail Group (LRG).
The deal will see Folli Follie Group acquire 100% of the distribution network built by LRG for an undisclosed sum.
This is the second buyback involving LRG this year, after international handbag brand Furla bought back its Australian operations in April.
LRG MD Nelson Mair said the group had no intention to sell both brands in such rapid succession however, it will give the group more opportunity to focus on its developing labels in Australia.
“While we didn’t plan to sell both businesses so close to each other, the timing was in the best interests of all stakeholders.
"The sale allows us to concentrate on our exciting and rapidly growing Sneakerboy business and on our latest brand in Australia, Balenciaga.
“We are also working on plans to launch new luxury brands into this market, that we will announce in the coming months.
“Folli Follie has been an important part of the growth of LRG as, along with the Furla business, we have demonstrated the value we bring to global brands wishing to establish themselves in this market."
As part of the acquisition, Folli Follie Group will now establish a local headquarters in Australia to help facilitate its expansion plans.
The group has also indicated it will look to open further stores nationally, bringing further brands into the market.
LRG started the business for Folli Follie with the goal of creating a foundation for continued growth, consistent with what the brand had experienced in Europe and Asia.
Earlier this year Folli Follie Group announced strong global revenue growth of 12.1% to €1.3 billion, with earnings growing 10.1% to €291.9 million (EBITDA).
LRG launched Folli Follie in Australia in early 2015 and quickly developed a strong online business, alongside three high profile locations.
This comprised of two stores in Melbourne and one in Sydney.