British fashion label worn by

British fashion label worn by Kate Middleton acquired by SA’s Foschini

How regal! The South African fashion industry is making a huge statement to its competitors

British fashion label worn by

The Foschini Group have successfully acquired Hobbs – A British retailer famous for clothing Kate Middleton and other huge names in the UK

It has been speculated that the South African owned company payed around £80 million pounds for the fashion icons. That’s a sum of around R1.5 billion.

Kate Middleton-backed company falls into South African hands

The deal was facilitated by private equity owner 3i. Hobbs have had an incredibly successful decade, establishing 140 stores across the world and boasting revenues of £120 million in 2016.

The Duchess of Cambridge Kate Middleton sports a Dalmatian-print Hobbs garment

But Foschini have pounced quickly on the emerging titans of the industry. The SA chain now want to ‘enhance Hobbs’ online presence’ in a market which is rapidly shifting to a digital identity.

The chief executive of Foschini couldn’y hide his delight with the new acquisition and expressed what a coup this was both personally and for business in South Africa. He labelled Hobbs as a ‘strong, British brand with a a rich design heritage’.

The deal comes amid a tumultuous time for British business and the High Street retailers. Brexit has pummelled the market, with uncertainty over the UK’s economic future looming over the fashion industry.

Inflation has began to hit the economy hard, and businesses are taking a hit as production costs – and therefore, the price they market their goods – continue to soar.

Figures released by the British Retail Consortium showed some alarming figures, at a usually peak time of the year. Growth in October (excluding food sales) is a at a record low for retail chains, despite Christmas being just six weeks away.

Foschini pounce on Brexit uncertainty

Late autumn to early winter is a time of unmitigated success for thriving businesses. This year however, it’s been nothing but sluggish.

But, Britain’s loss is South Africa’s gain. Two years ago, they snaffled another UK retailer Phase Eight for R4.1 billion, and their empire is growing ever bigger

The capture of Hobbs will serve as a real eye-opener for global competitors, as the Foschini Group strengthens its reserves.