THE operator of The Athletes Foot (TAF) chain did a keen deal to buy out the royalty rights from its distressed US masters for $7.4million, thus saving $1.2m in annual licensing payments.
But the more compelling motivation is that the deal — which lasts for 249 years — frees up RCG to expand its, er, footprint in Australia.
Under its old agreement with US owner NexCen, RCG couldn’t expand into any line that duplicated TAF’s offerings. TAF sells footwear other than jocks’ sandshoes, so the restriction was onerous.
“This allows us to go on a journey we have been planning to go on for some time,” says RCG chairman Ivan Hammerschlag.