Galeria suits Vistula & Wólczanka

Clothing company Vistula & Wólczanka (V&W) has announced the purchase of a 100-percent stake in Galeria Centrum (GC), a chain of 13 department stores across Poland, from the Empik Media & Fashion Group (EM&F).

"This transaction will allow us to focus on the unification of our existing brand portfolio," announced Maciej Dyjas, president of EM&F.

While all of the retail fashion and beauty companies belonging to EM&F offer premium-class products, goods that were sold in GC were often more popular brands. In 2005 and 2006 GC's sales increased at a much slower rate than the rest of EM&F's retail companies.

According to Rafał Bauer, the president of V&W, GC experienced some difficulties in the past, but recently the company underwent a successful restructuring operation that helped to increase its revenues and profits. Bauer believes this trend will only be reinforced by GC joining V&W.

"Thanks to this investment, our company will acquire retail space that will be used for the company's activities in the middle-market segment," said Bauer. "We also plan to implement numerous synergies, both operational and financial, resulting from the merger of the retail operation of our company and GC."

Dyjas also announced that EM&F-owned company Ultimate Fashion had concluded a franchising agreement with the Switzerland-based Aldo Group International. According to the agreements, Ultimate Fashion gained an exclusive license to operate and open shops under the Spring brand in Poland until January 2010. The company plans to open around 12 such shops in Poland over the next few years.