Zara absorbs Kiddy’s Class as part of Inditex’s simplified structure strategy
As part of Inditex’s strategy to simplify its structure, Zara is said to have absorbed one of the group’s portfolio brands, children’s fashion retailer Kiddy’s Class.
According to a filing with the Official Gazette of the Mercantile Registry (Borme), as seen by Fashionnetwork, the transaction involves the “extinction by dissolution without liquidation” of the childrenswear brand and the “transfer en bloc of all its assets and liabilities” to the absorbing company.
Zara will also acquire the rights and obligations of Kiddy’s Class. The filing however did not imply any store closures.
The kid’s fashion chain operates around 68 of its own stores in Spain, Portugal and Greece, with its collections also distributed in a number of Zara stores.
The move comes two years after Inditex said it would be transferring its childrenswear focus onto its Zara Kids line, ultimately seeing the halting of its Massimo Dutti Kids brand in 2020.
It further adds to the group’s efforts to simplify its operating structure, a strategy it has implemented over recent years and has resulted in the merging of its international subsidiaries.