SSI, Gucci ink ₱350-M deal for joint venture firm

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Metro Manila (CNN Philippines, May 18) — A specialty retailer and a global luxury fashion brand formed a joint venture to manage stores locally.

SSI Group confirmed to the local bourse Wednesday its subsidiary entered into a ₱350-million deal with G Distribution B.V. (Gucci) forming joint venture Luxury Goods Philippines Inc. (LGPI) on May 17.

SSI owns 25% of LGPI, while Gucci holds 75%. The new company that will begin operations on June 1 will own and operate Gucci stores nationwide.

"The joint venture between SSI and Gucci further strengthens the cooperation between Gucci and SSI, and is expected to further accelerate the growth of the Gucci brand in the Philippines and enable operating efficiencies, as Gucci and SSI transition from a franchisor-franchisee relationship, to joint venture partners," read the Tantoco-led company's disclosure.

Gucci is among the over 90 brands represented by SSI Group, including luxury names Burberry, Coach, Givenchy, Hermes, and Lacoste. The group also has under its roster Marks & Spencer, Muji, and Payless, among others.