The C&A parent company Cofra Holding AG has found a new prospective buyer for its Mexican subsidiary. Cofra announced on Thursday that an agreement to take over C&A México S. de RL and its subsidiaries had been concluded with the textile and retail group Grupo Alfar SA de CV. The transaction, the financial details of which have not been published, still has to be approved by the responsible competition authorities.
C&A Mexico currently operates 78 branches and an online shop. In the future, these will “complement Grupo Alfar’s existing manufacturing and retail network in Mexico,” the company said. The group will also receive the local license for the C&A brand as part of the agreement.
Boudewijn Beerkens, CEO of Cofra Holding AG, explained the reasons for the planned sale: “C&A Mexico is a successful division with 78 stores, a growing online presence and strong management. We believe now is the right time to lead C&A Mexico into the future under new ownership and fully exploit the growth potential,” he said in a statement.
At the same time, Beerkens has high hopes for the designated buyer: “Grupo Alfar is a family business with strong roots in textile manufacturing in Mexico, which has already successfully helped many fashion brands to grow,” he emphasized. “I am therefore confident that C&A Mexico, as part of Grupo Alfar, will be able to vigorously pursue its growth goals in the coming years.”
C&A had already tried to sell its Mexico business in spring 2020. At that time, a corresponding agreement had already been reached with the local retail group Grupo Axo. However, due to the effects of the Covid-19 pandemic, the transaction was ultimately not completed.