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Athlete’s Foot parent RCG secures long-term deal

August 8, 2009 | The Australian

INVESTMENT holding company RCG Corp, which has the Athlete’s Foot franchise licence in Australia and New Zealand, has secured a long-term deal to continue operations after outlaying a one-off, lump sum payment of $US6.2 million ($7.4m).

Under the licence deal, RCG will make the one-off payment of $US6.2m to snare a long-term agreement that runs for 249 years — with no future ongoing licence fees to pay.

“We now have a deal which will continue to be run by our great-grandchildren,” RCG chairman Ivan Hammerschlag said.

It is understood Athlete’s Foot’s parent in the US, Nexcen, is in financial difficulties, weighed down by more than $US120m of debt — 10 times its earnings before interest and tax.

 

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