Grupo Axo, the clothing operator that markets international brands such as Tommy Hilfiger, Calvin Klein, Nike and Victoria's Secret, announced an agreement for the acquisition of some assets of the ON Stores brand in Mexico, a subsidiary of the American textile company The Gap.
Axo said it entered into various contracts with The Gap to operate, manage and distribute the Old Navy brand --which is the trade name of ON Stores-- in Mexico, according to a statement from the operator, which did not reveal the amount it had. to pay for those assets and for the licences.
"If the aforementioned conditions are met, Grupo Axo, directly or indirectly, will operate, manage and distribute the Old Navy brand in Mexico," the company said in the statement.
This agreement occurs in the midst of the recovery process of various clothing and footwear stores after the impact they registered in 2020 with the restrictions to physically operate and the confinement measures due to the covid-19 pandemic.
Even at the beginning of this year, in March, Axo terminated the contract to acquire all the operations of the fashion chain C&A Mexico.
"To a large extent [the cancellation of the agreement is] a result of the adverse effects of the covid-19 pandemic, the parties agreed to terminate the operation," Axo said at the time.
The agreement with The Gap is still subject to the common closing conditions for this type of transaction, which include the endorsement by the Federal Economic Competition Commission.
