The Tommy Hilfiger Group has assumed direct control of its wholesale and retail distribution in Turkey from its distributor Unitim Retail Group.

The Group will fully control the business in Turkey, while Unitim Retail Group will maintain a minor stake in the Company. Unitim will continue to operate as the Company’s exclusive franchise partner in Russia and as the wholesale and retail distributor in Ukraine, Moldova, Kazakhstan and Azerbaijan.

“Tommy Hilfiger was introduced to Turkey in 1998 when we signed a distribution agreement with Unitim,” said Fred Gehring, Chief Executive Officer of Tommy Hilfiger Group.

“In just over a decade it has developed into a successful business with revenues exceeding €20 million. The brand is extremely well positioned and experiences very strong sales and demand from local consumers. We believe that there will continue to be growth opportunities in Turkey and, as a subsidiary of Tommy Hilfiger Europe B.V., the market’s commercial activities will benefit from complete integration into the European organization. This acquisition is in line with our strategy to consolidate brand management and approach the market in the most coordinated manner possible,” he added.

Burc Cemiloglu, Chairman and CEO of Unitim Holding, said: “We have experienced a spectacular business development with Tommy Hilfiger during the last ten years, not in the least due to the inspiring work relationship with the European management team. It has truly been a pleasure to build the business in Turkey and I am confident that the Tommy Hilfiger business will have many more successful years of growth in the region.”

Tommy Hilfiger-branded products are exclusively distributed in Turkey through a network of over 33 freestanding retail stores and a select number of multi-brand points of sale.

Tommy Hilfiger Marka Dagitim Ve Ticaret Anomin Sirketi, based in Istanbul, will operate as an independent entity and will continue to carry forth all current activities. Cemiloglu will remain in his position for Russia, Ukraine, Moldova, Kazakhstan and Azerbaijan. No financial details have been disclosed.

—Regina Henkel