The Tommy Hilfiger Group is to bring its European handbag and small leather goods business in house from spring 2011.
“The integration of this business…is intended to optimise both product development, as well as sales,” the Phillips-Van Heusen-owned company said.
Tommy Hilfiger handbags and small leather goods were introduced to the European market in 2004 under a licensing arrangement currently operated by Tichebox Srl. Sales exceeded EUR16.5m (US$20.3m) at wholesale in 2009.
Fred Gehring, CEO of the Tommy Hilfiger Group, said: “We see tremendous growth potential for these categories and this step will provide us with greater control and improved brand alignment.”
The transaction is expected to close by 16 June. No financial details of the transaction have been disclosed.
The division will be managed by Christopher Koerber, SVP of footwear and accessories, who will report to Daniel Grieder, CEO of Tommy Hilfiger Europe BV.
Simultaneously with the closing, Tommy Hilfiger will enter into a new licensing agreement with Tichebox for the design, production, sales and marketing of luggage under the Tommy Hilfiger brand.
