Cenomi Retail, Saudi Arabia’s pioneering retail brand partner, has announced the appointment of Deloitte to manage the forthcoming sale of its Aleph brand.
This appointment is a crucial step in the execution of the brand divestment program previously announced by Cenomi Retail. Currently Aleph has 19 stores with a 20th to open in UWalk Jeddah in June 2024 and it is the largest Apple mono-brand partner in the kingdom. As an Apple premium partner, Aleph provides access to the latest Apple hardware and software solutions, 3rd party offering and after sales support.
Cenomi Retail recently announced the sale of a further 18 brands which are in addition to the previously announced 21 brands as part of its turnaround strategy. The expectation is that these brand sales, including the sale of Aleph will close during 2024.
Managing end-to-end
Deloitte, a world-class management advisory firm will manage the process end-to-end. They have been appointed to work with Cenomi Retail to market the business, manage the bid process from interested parties, support in due diligence and lead the closing of the transaction once awarded.
The ongoing brand divestment programme is a key pillar in improving the financial performance of the business whilst protecting topline sales. This is a significant milestone for the company in undertaking an aggressive program of brand divestment, store closures and operational efficiencies to simplify the portfolio, improve profitability and clearly deliver on the turnaround strategy.
All proceeds from the sale of Aleph will be utilised to continue the deleveraging of the company.
Salim Fakhouri, Acting Chief Executive Officer, commented: “As a cornerstone of our turnaround strategy, the appointment of Deloitte is a major milestone in executing the brand divestment of Aleph. As international consultants, Deloitte will be working closely with the Cenomi Retail Executive Management team over the coming months.
Sellside advisor
“Deloitte will be our partner as sellside advisor for the sale of Aleph and will work closely with the team to maximise the benefit of this sale to Cenomi Retail. With a proven track record regionally and internationally, Deloitte are working with us towards executing this mandate during this financial year.
“On the completion of the brand sale programme, the operating portfolio for Cenomi Retail will have reduced from 75 brands to a core portfolio of 13 brands. The exit of these non-core brands is critical in delivering on our turnaround strategy and will allow the company to focus on Tier 1 core strategic fashion and food & beverage brands to drive long term revenue growth and financial stability for the organisation.”--TradeArabia News Service
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