Korean sportswear maker buys French fashion house

Korean sportswear company EXR Korea has taken over the Paris-based fashion house Jean-Charles de Castelbajac.

EXR announced Wednesday that the two companies agreed in France Tuesday on the Korean company`s acquisition of the French brand for 3 million euros (4.1 million U.S. dollars).

Prior to the agreement, EXR obtained court approval last week for the acquisition of the French company, which is under court receivership.

The French brand was established in 1978 and named after the Morocco-born French designer de Castelbajac. The brand has produced clothing, watches and perfume by incorporated characters appearing in pop culture into them. Castelbajac, a close friend of pop artist Andy Warhol, was also renowned for his unique design inspired by pop art.

In 2002, the French designer received the Legion of Honor, the highest award from the French government. He also gained fame by producing T-shirts having the face of U.S. President Barack Obama and a frog jacket worn by pop singer Lady Gaga.

Castelbajac has been reeling from financial difficulty since May, however, when the Sixth Swedish National Pension Fund, the parent company of the brand, stopped financing it.

The acquisition offer was first made by the French brand. EXR took over in January the French brand`s trademark right in Korea from the Japanese company Itochu Corp., which won the right to distribute the brand both in Korea and Japan.

At the time, Castelbajac proposed that the Korean company buy the right to use its trademark worldwide except in Japan.

EXR is the latest in a string of Korean companies that have recently acquired European luxury brands. E-Land Group took over Mandarina Duck of Italy in July and Korean cosmetics giant Amore Pacific bought the perfume brand Annick Goutal of France last month.

Like E-Land and Amore Pacific, EXR considered the growth potential of European luxury brands in making the decision to purchase the French fashion brand.

hparks@donga.com