Apparel group Gazal is on the verge of a mammoth partnership.
The company, currently responsible for brands such as Calvin Klein, Van Heusen and Nancy Ganz, has revealed it is in discussions with PVH Corporation regarding the expansion of its existing joint venture arrangements.
Gazal advised that it is in negotiations with The Tommy Hilfiger Group, regarding the potential transition of the Tommy Hilfiger Australian business to the PVH-Gazal joint venture company, PVH Brands Australia Pty Ltd.
The Tommy Hilfiger Group is wholly owned by PVH Corporation.
The targeted effective date of the tie-up is February 2, 2015.
Last year, Gazal and PVH established PVH Brands Australia Pty Ltd as a 50:50 joint venture to distribute Calvin Klein Underwear and CalvinKlein Jeans products in Australia, New Zealand and certain Pacific islands.
The tie-up came under an agreement with Calvin Klein Inc, a wholly owned subsidiary of PVH.
The joint venture commenced operations in February 2014 and recently entered into a further licence with Calvin Klein, Inc. to distribute additional Calvin Klein product categories.
The Tommy Hilfiger Australian business comprises wholesale and retail operations, with national distribution through Myer and David Jones department stores, as well as 12 stand-alone Tommy Hilfiger retail stores.
However, Gazal has stressed that the parties have not signed binding agreements.
“As a consequence, Gazal is not able at this time to give guidance to the market on the terms of any transaction that may eventuate but will keep the ASX and shareholders apprised in accordance with its obligations under the Listing Rules.”