Brand house Pentland Brands has bought a 20% stake in streetwear label Gio-Goi in a deal that has provided a much-needed confidence boost to the sector.
The value of the deal was undisclosed but Gio-Goi chief executive David Douglas said it would enable the brand to step up its international expansion ambitions and tap into Pentland Brands’ sourcing base.
Gio-Goi, which has about 200 accounts in the UK and Republic of Ireland, has continued to buck the downturn, achieving strong order books and sell-throughs for its widespread independent and multiple account base.
Pentland Brands chief executive Andy Rubin said the tough climate in 2009 would present huge opportunities for those in the sector willing to step up to the plate. He said: "This is a very positive investment in a growing brand which is win-win for both sides. This is a strategic investment for us. We think Gio-Goi has been doing a phenomenal job."
"Pentland is always looking at opportunities and the current market is one that we look at positively in terms of those," he added.
Douglas, who has retained a stake in the business and who will remain chief executive of the streetwear brand, said: “We are getting quite impressive results overseas and it would have taken us years to build a Pentland-type infrastructure. Gio-Goi will remain autonomous from Pentland though."
Douglas agreed that 2009 would bring opportunities for investors in the sector. "Although my focus remains on Gio-Goi, we will look at the opportunities the market throws up. There are a number of opportunities opening up at the moment and we are in a key position to do something," he said.