On Dec. 24, German outdoor brand Jack Wolfskin signed an agreement with Hong Kong-based Tristate Holdings, its current distributor and licensee for Greater China, to pass on the brand’s Chinese business to its own subsidiary, JW PRC Co. The subsidiary will become operational over the next three years.
In return, Tristate will provide consulting services to the new Wolfskin-owned company and will remain its distributor for the Hong Kong and Macao regions. During the transition period until the end of 2017, Tristate will receive service fees as high as the Eearnings before interest and taxes which JWPRC will make during the next three years. Tristate will also be granted an agreed percentage of the new subsidiary’s gross profits for the years 2016 and 2017.