International fashion brand invests millions of dollars in Israel: the chain set to profit

The Mashbir Group is deepening its partnership with Kenneth Cole Productions. The parties have signed an investment agreement and a shareholders' agreement, under which Kenneth Cole Productions will invest up to $5 million in Kenneth Cole Design and Development Ltd., a company currently wholly owned by Mashbir 365.

As part of the deal, Kenneth Cole Productions will invest $3 million as a capital investment in exchange for 20% of the share capital of Kenneth Cole Design and Development, on a fully diluted basis. In addition, the company will provide collateral of up to $2 million for a bank credit line. According to Mashbir's announcement, the investment is intended to support the continued development and expansion of the Kenneth Cole brand's operations worldwide. The agreement is another layer in the ongoing cooperation between the parties, following the Mashbir Group's development of the Kenneth Cole New York brand in Israel over the past three years.

Rami Shavit, CEO of Mashbir 365, said:

"After three years during which we developed the Kenneth Cole New York brand's operations in Israel, we are moving to the next stage of expanding operations to Europe. We have established offices and a showroom in Düsseldorf, Germany, which will serve us for working with franchisees and department stores in Europe to distribute the brand on the continent. At the same time, we have established a logistics system in the Netherlands to support operations across the continent."

Shavit added that Kenneth Cole is a brand operating in 9 categories, and the group views it as a strategic growth engine. The entry of Kenneth Cole as a partner in Kenneth Cole Design and Development Ltd. constitutes a significant expression of confidence in the path, the activity, and the growth potential inherent in it.