Inditex streamlines corporate structure, Zara absorbs Kiddy's Class
The Inditex group is continuing to streamline its corporate structure. Zara has absorbed Kiddy's Class, its children's fashion chain, as published in the Official Gazette of the Mercantile Registry (Borme).
The document stated that it is a merger by absorption. The transaction involves the "extinction by dissolution without liquidation" of Kiddy's Class España S.A. and the "transfer en bloc of all its assets and liabilities" to the absorbing company, Zara España S.A., which acquires "by universal succession" the rights and obligations of the absorbed company.
Inditex announced in early 2020 that it would concentrate its efforts in children's fashion on the Zara Kids line, which led to the discontinuation of Massimo Dutti Kids and culminated in this movement registered in the Borme.
Zara's children's line can be found in many of the retailer's stores. Its stand-alone store format counted a total of 53 stores as of October 31, 2022, according to the Galician group's latest quarterly report. Just a few years earlier, at the close of 2018, the Kiddy's Class chain had 128 stores.
The absorption of Kiddy's Class by Zara España is also in line with Inditex's process of reducing its operating structure over the last few years, which resulted in the unification of its subsidiaries in Portugal, Italy and the United Kingdom.
The textile giant announced just a few days ago its third quarter results: in the first nine months of the year, the company posted a profit of 3.09 billion euros, up 24% compared to the same period in 2021. For its part, sales stood at 23.06 billion euros, up 19% year-on-year.
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