Lafuma Group, owner of brands such as Millet, Eider, Lafuma and Oxbow, has been trying to reposition the group over the past few months for a more solid financial structure.
In March, Lafuma Group sold the Millet brand in Korea to its licensee Edelweiss. The transaction contributed €5.8 million in cash to the Group's balance sheet. The number seems pretty low considering sales under the Millet license in Korea generated €6.2 million in revenue in 2008 alone.
In May, Lafuma Group issued €10.2 million worth of new shares in a fully subscribed capital increase. The issue increased their equity base and will now allow the Group to pursue its development strategy through organic growth.
Most recently, the Group has assigned rights for the Eider brand in Korea to its licensee K2 and Lafuma to LG Fashion. These agreements finalize Lafuma Group's strategy of selling its brand assets in South Korea and in other countries where they do not have a direct to consumer setup. In combination with the capital increase, the Group has now been able to significantly lower its level of debt and hopefully be able to achieve a turnaround in performance for 2010, despite the economy.