Hamashbir 365 announced today (Sunday) that it has signed a long-term strategic license agreement with Kenneth Cole to sell the brand’s products in all EU countries, as well as in the UK, Switzerland, and Morocco, as part of the development of the company’s international arm.
The company expects that brand sales in the licensed countries from 2026 to 2030 (cumulatively) will total about $400M net. This sales forecast is based on the company's estimate that by 2028, 30 brand stores will operate through franchisees, as well as the company’s experience in brand penetration and sales in Israel, along with global-e’s experience in operating e-commerce sites and negotiations the company is conducting with potential franchisees in Europe with proven experience in retail and/or wholesale, who are expected to participate in operating the brand according to the license terms.
According to the terms of the agreement, which was signed for a five-year period with two additional five-year extension options, Hamashbir will have an exclusive license to sell Kenneth Cole products in various wholesale, franchise, and retail models, as well as on e-commerce sites or large department store websites, in all EU countries, as well as in the UK, Switzerland, and Morocco. The development and production of the brand's products will be in collaboration with Kenneth Cole and their professional teams and approval.
Last September, Hamashbir updated about a framework agreement with the e-commerce giant GLOBAL-E, according to which it will become a partner in Hamashbir’s Kenneth Cole brand operations in Europe and will exclusively operate e-commerce sites in these countries for marketing the brand. According to the September agreement, GLOBAL-E will invest $5M, $3M in exchange for a 19% share in the equity of a company Hamashbir will establish for the brand's activity in the licensed countries, as well as $2M in providing a credit line or collateral for the same amount.
Rami Shavit, CEO of Hamashbir 365: "The long-term license agreement with Kenneth Cole outside of Israel represents a significant milestone in establishing the international activity arm of Hamashbir, as well as evidence of the depth of our relationship with Kenneth Cole and satisfaction with our current activities with the brand. The agreement we are announcing today allows us to implement the agreement with the e-commerce giant GLOBAL-E, which will enter as a partner in our activities in Europe and will operate the e-commerce sites for selling Kenneth Cole products in Europe. We will continue to develop and improve our business both in Israel and abroad, for the benefit of our shareholders and stakeholders in the company in general."