Philippine-listed specialty retailer SSI Group Inc (SSI) has signed a joint venture agreement with Japan-based Ryohin Keikaku Co Ltd (RKJ) in a bid to boost the household supplies brand MUJI in the country.
SSI Group’s board of directors approved on January 20 the joint venture between its wholly-owned subsidiary Stores Specialists Inc and RKJ which is expected to launch operations on April 1, 2017.
Dubbed MUJI Philippines Corp, the joint venture company shall own and operate MUJI stores in the Philippines.
“The joint venture with RKJ is expected to strengthen the MUJI brand in the Philippines and enable cost efficiencies,” SSI Group said in its statement.
Stores Specialists owns and operates specialty retailing boutiques for a range of international brands, to include luxury and bridge, casual wear, fast fashion, footwear, luggage and accesories and personal care brands.
RKJ is engaged in the planning, development, procurement, logistics and processing of goods under the brand name MUJI, as well as the operation of MUJI retail stores and the wholesale of MUJI goods to its trade partners.
Deal sized is pegged at $3.5 million (P175 million), with Store Specialists getting a 51 per cent stake, while RKJ a 49 per cent ownership in the new entity.
Store Specialists is investing over P89.2 million, while RKJ is injecting up to P85.7 million for the new MUJI Philippines.
SSI Group noted any profits from MUJI Philippines shall be distributed pro-rata to the ownership in the new entity of each of Stores Specialists and RKJ.
“Stores Specialists Inc shall provide the JVC with operational knowledge and apparel and retail sales expertise specific to the Philippines, while RKJ shall provide the JVC with brand management expertise and retail experience specific to the MUJI brand,” the listed firm added.
SSI Group’s last trading price decreased 1.15 per cent or P0.030 to close at P2.57.