The Rizap Group announced that it would enter a capital alliance with Jeans Mate, Inc. and make it a consolidated subsidiary.
The group will acquire the issued shares of Jeans Mate by TOB and increase the capital through third-party allocation.
By making Jeans Mate a subsidiary, Rizap is accelerating expansion in apparel business. Jeans Mate’s customer foundation is to be expanded by utilizing its advertisement know-how, etc. for improving profitability.
The Rizap Group is expanding business in apparel and sundries. Since 2012, the group has made a number of companies its subsidiaries, including companies for merchandising women’s and men’s wear and Internet sales companies. In Rizap-brand sportswear, the group is collaborating with Itochu Corporation.
Jeans Mate has been suffering from a business downturn with continuing operating losses. Rizap intends to rebuild the Jeans Mate brand with its advertisement and marketing expertise, and plans to take restructuring measures, such as the improvement of product appeal by strengthening the teams of patterners and designers, and with synergy with the Rizap Group.