The Mashbir 365 is updating today on a significant strategic move as part of the establishment and establishment of an international activity arm for marketing the company's Kenneth Cole brand. Hamashbir reports that it has signed an agreement in principle with the e-commerce giant GLOBAL-E, according to which it will enter as a partner in the activities of the Kenneth Cole brand of Hamashbir in the European Union and the United Kingdom and will exclusively operate online trade websites in these countries to market the brand.
GLOBAL-E specializes in the operation and localization of online trade websites. The company was founded in Israel in 2013, is traded on the NASDAQ stock exchange according to a market value of approximately 6.4 billion dollars, and operates over 1,000 online trading sites of leading brands and retailers worldwide.
According to the agreement, GLOBAL-E will invest 3 million dollars in return for the allocation of 19% of the share capital of a company that will be established by Hamashbir for the operation of the Kenneth Cole brand in the European Union and the United Kingdom, according to a value of approximately 16 million dollars after the money. Meanwhile, GLOBAL-E will provide the company with a credit line in the amount of up to 2 million dollars or collateral for a credit line in the same amount.
In addition, GLOBAL-E, as mentioned, will exclusively operate online trade websites of the Kenneth Cole brand in the countries of the European Union and the United Kingdom and has committed to finance annual marketing expenses as defined in the agreement. The contract period will be for 5 years, with GLOBAL-E's option to extend the contract period for another 5 years in accordance with certain conditions stipulated in the agreement.
As updated by Hamashbir in its reports for the second quarter of the year, the company is working to sign a long-term agreement with Kenneth Cole to extend the license granted to it in November last year for the production, marketing and sale of the brand in the countries of the European Union and the United Kingdom. The agreements with GLOBAL-E are subject, among other things, to the extension of the license.
Hamashbir operates 36 branches as well as an online trade website. In addition, Hamashbir Department stores has an exclusive license for distribution, production and marketing of the Kenneth Cole brand in Israel.In addition, the company opened, in the first half of 2024, a Stand Alone store of the Kenneth Cole brand in the Ayalon Mall, and in the third quarter, the chain opened in the Queen of Sheba shopping mall Eilat , which includes, among other things, a cosmetic store with a luxurious and innovative concept, Stand Alone stores of the Kenneth Cole brand and of the underwear brand ETAM in which the company owns while the rest of the space has been leased to third parties to operate various brand stores, also, the company intends to open additional Kenneth Cole stores for the ETAM brand and underwear brand.