Under pressure from headquarters in Sweden, WeSC signed a U.S. licensing deal with Oved Apparel Corporation, which licenses Modern Culture, PRPS, Company 81, among others.
According to CEO Greger Hagelin, “We have in recent years made significant investments in the brand in the U.S. market without success capitalizing on the value built up. Our U.S. operations, from a profitability point of view, have been a burden on our other operations. This agreement gives us a good return on the investments we have made thus far, while it frees up human resources and capital. In addition, we get a partner to the U.S. market with an existing infrastructure that will continue to invest in the brand.”
Hagelin lived in the United States for years while launching the U.S. division of WeSC, which started in the States in 2004.
According to a statement from WeSC, Oved will take over all U.S. operations and stores in the U.S. other than the LA and NYC shops. WeSC will receive 10% of Oved’s WeSC sales as royalty fees, which WeSC estimates will result in $15 million USD over the course of the 10-year agreement.
No news yet if the U.S. staff will remain on board due to this agreement.