Ugg Australia, the big-selling sheepskin boot brand owned by US firm Deckers, has terminated its UK and Republic of Ireland distribution agreement with AMG Footwear after eight years.
AMG Footwear will continue to handle sales of the autumn 10 and spring 11 Ugg collections but will hand back all responsibility and management of the brand on January 1, 2011 when Deckers will set up its own UK subsidiary and handle sales of its Ugg brand directly. It will also complete deliveries of the spring 11 order book.
The subsidiary will be based in Foley Street in London, at the company’s newly opened showroom complex.
The termination of the distribution agreement also affects the Deckers-owned Simple and Teva brands.
AMG Footwear has handled the distribution of Deckers brands for eight years in the UK. The UK market is the second largest for the outside the US.
The Ugg brand has been credited with driving the performance of most of the footwear specialists in recent years. It has continually proved to be a best-seller, particularly over the autumn season.
AMG said in a statement that the termination of the agreement would have no impact on its outdoor business, which operates under the AMG Groups company.