German fashion retailer Tom Tailor has signed a joint venture with Sportina Bled D.O.O of Lesce, Slovenia, which has been the brand’s exclusive distribution partner for all the Southeast of Europe. This new partnership is intended to boost retail expansion in that region including Croatia, Slovenia and Serbia, with Tom Tailor holding 51% of the shares, and Sportina holding 49%. The purchase price of the 51%-share was numeralized with €5 million.

In line with the joint venture, Tom Tailor took over the existing 23 franchise stores in order to operate them entirely as proprietary retail stores. This resulted in the brand owning 147 stores as of the end of October, and a gain of 51 retail stores since June 30, 2010. By the end of the year, five more stores will be added in Zagreb, Split and Ljubljana. Another 20 are to be implemented by the end of 2013.

“For years, Sportina has been an ideal partner for our expansion push in Southeastern Europe. The joint venture represents the next logical step in expanding synergies further, vigorously driving our internationalization, and expanding Tom Tailor’s market position,” Dieter Holzer, Chairman of the Group, said.