In recent months, talks about a separation of the partnership between Roberto Jatahy and Alexandre Birman have intensified. The two have hired financial advisors to untangle the knots that bind them at Azzas 2154, the largest fashion group in Latin America. While they haven't yet defined the path to follow, one decision has been made: to sell the Farm brand, one of the crown jewels of the group.
NeoFeed has learned that the group has hired Morgan Stanley to sell the operation on the international market. A source familiar with the deal says it's a deal worth around US$1 billion (R$5.1 billion). That is, more than the R$3.2 billion market value of Azzas 2154 this afternoon, June 19th. It is, in a way, a means of unlocking value in a company that is depreciated more by the disagreements between the partners than by its assets.
Before the discussions between Jatahy and Birman, Farm was seen as the spearhead brand for an international strategy of fashion that exudes Brazilianness. Founded by Kátia Barros and Marcello Bastos, Farm was born in the 1990s and consolidated itself in the market. The internationalization process began with a strong entry into the United States, where the brand, known there as Farm Rio , caught the attention of the female public in multi-brand retail.
After that, the brand outlined a structured plan for Europe, with store openings in Paris (at Le Bon Marché) and London, as well as strengthening its presence through e-commerce and partnerships with major European retailers. The next step would be entering Asia, where major international brands often find a lucrative growth avenue.
The brand's performance and internationalization potential had already positioned Farm as a candidate for a spin-off within the group, given the opportunities for capital allocation and independent expansion. It seems that this independence will now come in a different form, which would be one less knot to untie.
When contacted, Azzas 2154 did not deny the allegations and, through its press office, gave the following response: "Azzas 2154 does not comment on market speculation."
