Fox-Wizel Ltd. (TASE: FOX) is buying the seven Topshop stores in Israel from Golf & Co. (TASE:GOLF).
In April, Topshop will shut down in Israel after its online activities were sold to ASOS, leaving it without any brick and mortar stores. As a result, Golf was required to close the Topshop chain in Israel although it points out that it has sent ASOS a warning letter about the harm to its franchisee rights in Israel.
As part of the deal, Golf will vacate the Topshop stores, allowing Fox to lease the locations. The stores form total commercial space of 3,400 square meters. When the stores are vacated, Fox will pay Golf NIS 2.1-2.5 million plus VAT, depending on the mix of the stores vacated. The agreement is subject to the agreement of the leasing companies, and Fox is expected to use the outlets for its own brand.
The significance of the move for the future of Topshop's 150 employees remains uncertain. It is unclear whether Golf will transfer them within the retail organization or whether some might be hired by Fox.
The deal between Fox and Golf follows the collapse of the UK's Arcadia Group, which owns Topshop and its acquisition by UK online retail store ASOS for £300 million. ASOS only bought Topshop's brand and online activities and took in only 300 of Topshop's 2,800 employees.
Published by Globes, Israel business news - en.globes.co.il - on February 24, 2021
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