Safilo Group announces that it has reached an agreement to sell the U.S. retail chain Solstice to Fairway, LLC, a U.S.-based limited liability company. Fairway was formed by a group of investors active in the U.S. and in the European eyewear retail business. The transaction is expected to be completed within the third quarter of 2019.
As reported in April by EB, the sale of the Solstice retail business confirms Safilo Group’s efforts to focus on its core wholesale business, and thereby marks a further key step in Safilo’s strategy of recovering a sustainable economic profile.
In a statement released today, Safilo stated that the deal the deal—for $9 million on a cash and debt-free basis, (subject to the customary price adjustment mechanisms)—also includes a multiyear supply agreement for Safilo products.
Safilo Group bought Solstice Sunglasses—a luxury sunglass boutique chain—in 2002. At that time, there were just six locations. The chain has grown to more than 80 locations throughout the country, with a thriving e-commerce channel through its website.
In the fiscal year ended Dec. 31, 2018, Solstice reported net sales of Euro 52.1 million, down 16.5% at constant exchange rates compared to 2017, and an operating loss of Euro 13.5 million;