True Religion Apparel Inc (TRLG.O) formed a joint venture with its largest overseas distributor on Monday, to expand its wholesale business, and roll out retail stores in mainland Europe. The premium denim company joined with UNIFA Premium GmbH to form True Religion Brand Jeans Germany GmbH, which will take over the wholesale distribution of True Religion Brand Jeans in countries including Germany, Austria and Switzerland, as well as the operation of a retail store in Cologne.
True Religion will own 60 percent interest in the joint venture, while UNIFA Premium will own the rest.
True Religion said the joint venture's results will be immaterial to its 2010 financials.
UNIFA Premium's managing director, Reinhard Haase, will be the joint venture's managing director.
"The joint venture's business plan calls for expanding the brand's presence with the opening of retail stores and shop-in-shops and increased wholesale sales efforts, including new showrooms," Haase said in a statement.
True Religion shares were up 3 percent at $25.46 Monday afternoon on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Maju Samuel)
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