Luxury fashion brand Mulberry has announced details of an agreement to take full control of the wholesale and retail sales of products in the group's key US market. Its American partner was called Mulberry USA LLC , a limited liability partnership between Mulberry and a company under the control of the owners of Challice Limited which owns 56% of the issued share capital of the Somerset fashion group.
Under the termination agreement Mulberry agreed to pay Challice deferred consideration of up to £1m (either in cash or shares at Mulberry's option) if sales generated from the US market during the third year following the deal, exceeded an agreed threshold of $6m. This was approximately twice the turnover generated in the US market in the year prior to the termination of the joint venture arrangements.
