Stockmann extends its brand license agreement in Russia
Stockmann plc, Press release 30.6.2017 at 8:00 EET
Stockmann plc has entered into an extended license agreement with AO Stockmann, a company owned by Reviva Holdings Limited, on the usage of the Stockmann brand in Russia in 2018-2023. Reviva acquired Stockmann’s Russian subsidiary and assumed operations of Stockmann’s department stores in Russia as of 1 February 2016. At the time of divestment, the company was granted the right to use the Stockmann brand in Russia until 2018.
Following the agreement, Reviva will continue to run the Stockmann department stores under the current brand in the Nevsky Centre shopping centre and other locations in Russia. It is also planning to expand Stockmann branded retail into new stores. The license income is not expected to have a significant effect on Stockmann plc’s earnings in 2017 or 2018. From 2019 onwards, the license fee will be based on the revenue under the Stockmann brand in Reviva’s Russian retail units.