Cenomi Retail, a leading retail partner in Saudi Arabia, has entered into a variation agreement to sell the franchise rights of five prominent brands to Abdullah Al-Othaim Fashion Company. This agreement, an extension of the Share Purchase Agreement dated December 6, 2023, marks a significant shift in Cenomi Retail’s focus towards champion brands.
The transaction, valued at SAR 219 million, will transfer the rights of Aldo & Aldo Accessories, Charles & Keith, Pedro, and La Vie En Rose, along with 121 retail stores and associated assets, to Al Othaim. The deal also includes additional considerations for inventory at the time of the store handover.
To facilitate the transfer, Cenomi Retail has established two new entities: Fixed Feet Commercial Company for Aldo brands and Third Outfit Commercial Company for the remaining brands. The completion of this deal is contingent upon several pre-closing conditions, including approval from the General Authority for Competition.
This divestiture is a part of Cenomi Retail’s ongoing turnaround strategy, which aims to concentrate on developing and nurturing a select group of champion brands. The move is expected to bolster the company’s market position and drive future growth.