66°Norður partners with HLA to enter China

Icelandic outdoor clothing brand 66°Norður has agreed a major deal with Chinese clothing company HLA Group to sell and distribute its products in China, Morgunblaðið reported.

The agreement will establish a joint venture to handle sales and distribution. HLA, one of China’s largest clothing brands, operates more than 7,000 stores. The partners plan to open the first 66°Norður store in China in September 2027. It will be a flagship store in Beijing, chief executive Helgi Rúnar Óskarsson told the newspaper.

The joint venture will buy stock from Sjóklæðagerðin, the company behind 66°Norður. The parties have also agreed to sell intellectual property rights related to the brand’s sales and distribution in China. The cash payment for those rights is expected to significantly improve Sjóklæðagerðin’s liquidity and strengthen its financial position.

The company has reported losses over the past two years as it invested heavily in international expansion. Óskarsson said it had faced difficulties in the UK and written off money, while business was going very well in Denmark after a store relocation. Sales in Germany were also rising.