Dickson Concepts has revealed details of the termination of its licence to sell Tommy Hilfiger products in Hong Kong, Macau, Taiwan, Singapore and Malaysia.
The move, announced in March, is party of an international plan by Tommy Hilfiger’s parent PVH Corp to regain direct control of the brand in markets where it previously worked through third parties, like Dickson Concepts.
The termination of the licence took effect on Monday of this week and resulted in PVH paying Dickson Concepts US$52.6 million, being the estimated terminal payment of $63.8 million less a deducted aggregate escrow of $11.2 million.
PVH Corp, which also counts Calvin Klein, Van Heusen, Izod, Arrow, Warner’s, Olga and Geoffrey Beene in its portfolio, said the deal is in line with the company’s strategy of gaining more direct control over its brands.
“This transaction demonstrates our commitment to making strategic investments to support the long term growth of PVH and our Tommy Hilfiger business, while leveraging our well-established infrastructure, our leadership expertise and strong brand momentum across both our Tommy Hilfiger and Calvin Klein businesses in the region,” said Emanuel Chirico, PVH Corp’s chairman and CEO at the time the move was announced.
Dickson Concepts chairman and founder Dickson Poon in a stock exchange filing that the group “will continue the development of its other luxury brand name businesses and actively seek new investment opportunities to diversify and broaden its earnings base”.