Luxury retailer James Kennedy has entered into a deal to acquire Alquemie Group’s 25-strong Australian Lego store portfolio, while also confirming the creation of his investment group, Kennedy Consolidated.
The Kennedy watch and jewellery business – which recently divested its Patek Philippe boutique in Chadstone Shopping Centre to Cortina Watch – operates more than five boutiques in Australia.
CEO James Kennedy said the newly-formed Kennedy Consolidated was an opportunity to build on the 50-year experience of his namesake business.
“I can confirm that Kennedy Consolidated has entered into a transaction with Alquemie Group,“ James Kennedy told Inside Retail.
“Kennedy Consolidated’s strategy is to build on more than five decades of retail experience to develop a long-term, principal-led investment platform focused on acquiring and operating culturally significant consumer brands across Australia and New Zealand, with a focus on luxury and premium consumer, lifestyle, and specialty retail categories.“
Kennedy said the Lego deal was an example of the type of “high-quality, established platform” that the new investment group is looking at.
The deal would see Alquemie Group cease control of the Lego stores that it has operated since 2019. The Australian Financial Review rumoured the deal to be worth $50 million; Kennedy’s representatives declined to confirm this figure.
“Alquemie Group has agreed to sell the Lego Certified Stores business to Kennedy Consolidated as a going concern and for a substantial price. The sale follows an unsolicited approach to acquire the business,” an Alquemie Group spokesperson told Inside Retail.
Alquemie continues to operate the General Pants Co retail business and its house label Insight. Operating as a long-term partner of investment firm Alceon, Alquemie has reduced the size of its retail portfolio in recent years following a series of financial challenges at its brands.
But Alquemie maintained that Lego was not one such brand.
“The Lego Certified Stores business is a great retail success story – Alquemie has grown the business from nothing to a successful business with over 25 stores turning over $150 million in just seven years,” the spokesperson added.
