JD Sports Fashion heading to South Korea with joint Hot-T investment
UK retailer JD Sport Fashion has signed a joint venture deal to enter South Korea. The agreement with J&S Partners, which trades as Hot-T, a multi-brand athletic footwear retailer, will see JD purchased an initial 15% of Hot-T for £5.5m. It also has a call option to buy a further 35% stake following the finalisation of Hot-T’s year to December 31 accounts.
JD said it intends to exercise the option and re-brand the Hot-T stores as JD, though the business would continue to be operationally run by its existing management team.
Hot-T, which has 23 stores and am e-tail website, claims 2016 revenues of around £17.2m.
“We are delighted to be entering into this JV which gives JD the opportunity to enter a new market of over 50m people with a proven operator,” said JD’s executive chairman Peter Cowgill.
“This JV will further strengthen JD’s global presence,” he added.