Clyde & Co Advised Cenomi Retail on SAR 120 Million Franchise Divestment to Abdullah Al-Othaim

Clyde & Co Advised Cenomi Retail on SAR 120 Million Franchise Divestment to Abdullah Al-Othaim

Global law firm Clyde & Co has guided Cenomi Retail, a prominent Saudi listed company, to unlock SAR 120 million through the sale of 18 franchise rights, including the popular Flormar, OXXO, and Monsoon brands, to Abdullah Al-Othaim Fashion Company. This transaction, expected to be finalised in Q1 2024, marks a critical step in Cenomi's journey towards a streamlined brand portfolio and aligns with its future growth plans.

The divestment aligns perfectly with Cenomi Retail's ongoing transformation plan, allowing them to prioritize and invest in champion brands within the high-growth sectors of fashion, electronics, and food and beverage.

Saudi Arabia's retail giant, Cenomi Retail, a pioneer in franchise partnerships and the only publicly traded company of its kind in the Middle East, was established in 1991 by renowned businessman Fawaz A. AlHokair and his brothers. Cenomi has witnessed remarkable growth, now commanding over 1,300 stores across 100 shopping malls in 11 MENA and CIS countries. The acquiring entity, Abdullah Al-Othaim Fashion Company, brings its own retail expertise as a subsidiary of Abdullah Al Othaim Investment Company, a renowned operator of malls and entertainment centres across the Kingdom, GCC, and Egypt.

Clyde & Co served as lead counsel to Cenomi Retail, fielding a cross-practice and cross-jurisdictional team under the leadership of partner Chadi Salloum (corporate), legal director Amun Bashir (corporate), and trainee Urmika Mani (corporate). The team received comprehensive support from partner Sara Khoja (employment), legal director Krishen Patel (corporate), and associates Elodie Chalhoub (employment), Jassar Aljohani (employment), and Abdulaziz Alharthy (corporate).

Click to know more about Clyde & Co