Adamas Will Launch Jewellery Stores for Children

The Russian jewellery company Adamas bought a franchise and Russian-based business operations of French jewellery brand Agatha, focused on youth audience, executive director of the retailer, Maxim Weinberg, announced. The value of transaction is estimated at $1 million. Adamas wants to develop this brand to capture attention of the young audience, and in the future it aims to overtake a missing market niche of jewellery for children in Russia, opening stores Adamas Kids, Rbcdaily.ru reported.
The deal with Agatha has not been closed yet, Maxim Weinberg said, as this should happen in the coming months. However, operational business management and integration of brand Agatha to Adamas has been already started. Weinberg refused to name the seller and the amount of transaction, adding only that it was a joint venture of the French and Russian businessmen.
Commercial real estate consultants told RBC that Agatha is represented by Paris Fashion at the Russian market. According to Spark -Interfax system, Paris Fashion LLC is 100% owned by the Cyprus-based offshore Doremiko Holdings. The company's revenue in 2012 amounted to 65.3 million rubles, net loss posted at 18.1 million rubles.
Currently, according to Weinberg, the primary task is to bring Agatha network (five stores in Moscow) to profitability. Later Adamas will open two or three multibranded stores in order to observe the level of demand. In 2014, the costs of developing the new network are planned at the level of RUB 20-30 mln. They will be allocated for launch of 10-12 additional sales points this year.