FJ Benjamin boosts Man Utd investment, cuts back in fashion

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Singapore luxury goods boutique retailer FJ Benjamin Holdings (FJB) said today it had signed a joint venture agreement with Dennon Entertainment to own and operate the Manchester United branded Red Café in Singapore. The deal, made through FJB's subsidiary Manchester United SEA (MUSEA), will create a new joint venture with each company owning a 50% stake. The Red Café, opened a year ago, is to be renovated and relaunched in September.

MUSEA has the franchise rights to operate flagship cafés, supporters clubs as well as for Manchester United football club merchandise and retail outlets in Singapore, Malaysia, Brunei, Indonesia and Thailand.

In other company news, FJB said it expects its financial performance in the second half of the year ending 30 June 2001, to show a worsening sales trend compared to the first half. It said this was due to persistent weakness in the fashion retail sector. The company sold its Hong Kong retail operations in June to WBG Greater China, part of the Hong Kong-based Wheelock Group. This operation includes the retail and distribution of Guess? products in Hong Kong, Macau and mainland China.

"We've already taken major steps to wind down our retail operations in Australia and Hong Kong," chairman Frank Benjamin said this week. FJB began scaling back its Australian operations in June, when it sold its 35% stake in Gucci Australia to major shareholder Gucci for a reported $6.2m.