Kashiyama buys Joseph

Japanese clothing manufacturer Onward Kashiyama Co. has bought British fashion house Joseph Group for an estimated GBP 140 million, according to Fibre2Fashion news service. Joseph Ettedgui, Joseph founder, said in a statement that the Compagnie Nationale a Portefeuille, which controls 57 per cent of the business, will purchase the rest of the shares.

Joseph has a presence of 63 stores in London, Tokyo, New York and Paris. It opened its first store on the King's Road in London in 1971. Department stores like Harvey Nichols and Harrods in London and the Bon Marché in Paris also carry the brand.

The Ettedgui family hold 18 per cent of Joseph's shares. The remainder is the hands of LVMH, with 10 per cent, and Power Financial with 5 per cent. Thierry Letrilliart, Joseph Managing Director, said that as it's men's wear partner in Japan, Onward Kashiyama was in the position to help the company expand significantly in the Far East.

In Japan, Onward Kashiyama has licensing agreements with Paul Smith and Michael Kors. Its own brands include ICB and Vanilla Confusion. Joseph ambassadress Elizabeth Hurley promoted the brand in Japan where sales rose 3 per cent, or a 3.6 per cent sale in like-for-like store sales.

The company reported that earnings before interest, tax, depreciation and amortization climbed 34 per cent to GBP 13.3 million in 2004, as it reduced costs. The forecast for 2005 is optimistic, with retail sales looking up and the autumn wholesale order book up 12 per cent on last year.