Kim Kardashian did not achieve what was expected of her, and Castro Model is terminating its agreement with her. The discount eyeglasses company owned by the Castro group reported today the immediately termination of its agreement with Kardashian. Castro announced earlier this month that it was considering a revision of the terms of the agreement.
Kardashian has been a presenter of the Carolina Lemke brand of eyeglasses in its activity in the US for the past year. The contract between the parties, which was originally for two years, with a one-year extension option, is being terminated after one year. The third quarter reports published last week by Castro show that the company attributed its operating loss partly to the Carolina Lemke brand's activity in the US. In its reports, Castro states that it invested nearly NIS 50 million in this activity in the first nine months of 2019.
In September 2018, shortly after completing its acquisition of Hoodies, Castro decided to promote its Carolina Lemke brand of products in the US and worldwide with the help of celebrity Kim Kardashian, as part of Carolina Lemke's plan to continue its global expansion, with an emphasis on the US.
Castro signed a two-year agreement with Kardashian for this purpose. When the agreement was signed, Castro estimated the cost of the agreement and establishing the Carolina Lemke branch in the US at $20-30 million in the first year. In its recent announcement, the Castro group, which owns the Carolina Lemke brand, nonetheless stated that it would continue considering stepping up the Carolina Lemke brand's US activity.
Published by Globes, Israel business news - en.globes.co.il - on December 5, 2019
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