- Vivian Hendriksz |
London - JD Sports Fashion has shaken off fears of a nuclear threat from North Korea by entering a joint venture agreement with South Korean footwear maker SMK, which sees JD Sports Fashion acquire 15 percent of the multi-branded retailer Hot-T for 5.5 million pounds.
As part of the joint venture, JD Sports Fashion has the option to acquire an additional 35 percent stake in the footwear retailer by the end of the year, which it plans to exercise. Part of the agreement sees the 23 Hot-T stores rebranded as JD Sports, although they will be continued to run by the current management team.
Hot-T reported revenue of 17.2 million pounds for its fiscal year 2016, making it an interesting investment for JD Sports, as the company continues to grow in its international expansion scheme. Parent company SMK owns another multi-brand sports footwear retailer, Shoemaker, which operates 114 stores across South Korea.