Furla Group is set to buy back the Australian distribution network from its partner Luxury Retail Group (LRG).
Furla opened the first boutique in Westfield Sydney in December 2013, and now has 15 stores in Melbourne, Sydney, Brisbane and Gold Coast.
The deal will see Furla to acquire the stores reaffirming the brand’s goal of further strengthening its presence in Australia and New Zealand.
Furla Group CEO Alberto Camerlengo said the Australian market is crucial in its expansion plan.
"Since 2013, Luxury Retail Group has been the best key partner to work with as it perfectly embodies the Furla vision, values and DNA: this is the reason why the two LRG directors will remain as board members of Furla Australia.
"The Australian business represents 5% of the global revenues in 2016, we are very proud to announce this acquisition.
"We aim to enhance the distribution in this country given the success of the Furlaretail strategy and the very positive response of Australian customers”.
The deal will see Furla exercise an option to acquire 100% of the distribution network built by LRG for an undisclosed sum.
LRG will continue to support the Furla business for a further three-years under a services agreement.
This year, Furla plans to expand its brand presence to Auckland in New Zealand, as well as enlarging the Sydney Westfield boutique and opening four more stores.
LRG MD Nelson Mair said the timing makes sense.
"After having achieved 95% sales growth in 2016, this vertical integration of Furla Australia and New Zealand will better equip the business for the next phase of its growth.
"I am extremely proud of my team and what they have been able to achieve in such a short space of time and thankful to Furla for entrusting their wonderful brand to us”.
Furla has a direct presence in 100 countries; with 444 monobrand stores that are split evenly between directly-owned boutiques and franchises.
The company also has distribution in multibrand and department stores in 1,200 international locations.