This article first appeared in The Edge Financial Daily, on November 5, 2015.

KUALA LUMPUR: Parkson Holdings Bhd has tied up with private firm Superb Apparel Supply Sdn Bhd to establish new concept stores under the brand name LOL that will sell affordable fashion apparel.

It told Bursa Malaysia yesterday that Parkson Corp Sdn Bhd, the wholly-owned unit of its 67.61%-owned Singapore-listed subsidiary Parkson Retail Asia Ltd (PRA), inked a shareholders’ agreement with Superb Apparel for the 70:30 joint venture (JV) yesterday.

According to an attached statement from PRA, Parkson Corp will take up a 70% stake in JV company Super Gem Resources Sdn Bhd, while Superb Apparel will take the remainder 30% to trade, market and sell apparel and related products in LOL outlets.

Super Gem is currently a wholly-owned unit of Parkson Corp and does not conduct any business.

PRA said Parkson Corp’s subscription of 700,000 ordinary shares in Super Gem will cost approximately S$230,000 (RM702,293), which the group will satisfy with internally generated funds.

“The JV will provide the PRA Group a platform for selling apparel to the mass market,” it added.

The LOL stores will also sell shoes and accessories for men, women and children, it added.

Shares in Parkson closed down one sen or 0.93% at RM1.07 yesterday for a market capitalisation of RM1.17 billion.