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current news

Tefron To Establish Egyptian Joint Venture

(Filed Under Fashion News). Israel-based Tefron Ltd. reported that it is currently in advanced negotiations with "a number of third parties" to establish a joint venture in Egypt. The company did not release the names of the third parties involved.

The purpose of the venture would be to manufacture merchandise on behalf of the company’s customers, which include such retail giants as Maidenform, Warnaco/Calvin Klein, Victoria’s Secret, Gap, Inc., J.C Penney and Target, among others. The joint venture would be established through a third company called Tefron Egypt, in which the company would hold a 50 percent interest, with the remaining half being held by three partners. Under the proposed arrangement, Tefron would transfer equipment totaling at approximately $1 million to Tefron Egypt, while the other partners would invest an equivalent amount in cash to be used for investments and working capital to commence the JV’s operations.

According to Tefron, there is currently no guarantee that the joint venture will be established, or that the negotiations will lead to a binding agreement.

Tefron, Ltd. is a major producer of seamless intimate apparel and engineered-for-performance activewear.

more Fashion News >>

Published 06-18-2009 by Amanda Torres Price

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