Firms: Herbert Smith Freehills (Furla Group); Arnold Bloch Leibler (Luxury Retail Group)
Deal: Furla Group (Furla) has completed a buyback of its Australian stores from Luxury Retail Group (LRG).
Key players: Herbert Smith Freehills (HSF) partners Hayley Neilson (pictured) and Mark Currell led the team advising Furla. They were supported by senior associates Jacob Kahwaji and John Erbacher, and solicitor Tess Mierendorff.
Arnold Bloch Leibler (ABL) partner Christine Fleer led the team advising LRG, with assistance from lawyer Laura Cochrane and law graduate James Hamilton on the commercial aspects. Senior associate Damien Cuddihy and lawyer Maneka Siva Nathan advised on the financing aspects of the deal.
Deal significance: Italian luxury handbag and accessory retailer Furla has acquired its Australian distribution network from LRG.
The network comprises 15 stores across Melbourne, Sydney, Brisbane and Gold Coast, with five more in the pipeline for 2017 across Australia and New Zealand. The Australian market generates five per cent of Furla’s annual global revenue.
The transaction reflects Furla’s success since entering the Australian market in 2016. HSF said in a statement that the deal will improve the retailer’s position in Oceania as it looks to expand.
“This is a landmark deal for Furla in Australia, and it has been a pleasure working with them on what was a complex cross-border acquisition with multiple stakeholders,” said HSF partner Hayley Neilson.
“We wish Furla continued success as it implements its expansion plans in Australia.”
ABL partner Christine Fleer said the transaction demonstrated the strength of the luxury retail sector in Australia.
“We were delighted to assist LRG owners Nelson Mair and Theo Poulakis, two of the smartest retailers in Australia, on this important transaction, which demonstrates the strength in the Australian retail market for luxury goods and LRG’s position in it,” Ms Fleer said.