Basque Brands Ternua and Loreak Mendian Find New Owners in Restructuring Deal

The Basque conglomerate Ternua Group is actively progressing with its insolvency proceedings, which commenced in June, through the strategic divestment of its prominent brands, Ternua and Loreak Mendian. These sales represent crucial steps in restructuring the group, aiming to secure the future of these established labels.

A significant development in this process is the acquisition of the group’s eponymous brand, Ternua, by the Dikar co-operative. Part of the renowned Mondragon Corporation, Dikar secured approval for this deal from Commercial Court No. 1 in San Sebastián. This acquisition is explicitly designed to preserve the brand’s industrial footprint and deep-rooted Basque identity, ensuring its continued operation within a robust, internationally oriented business framework that remains dedicated to the region.

In a statement circulated by Europa Press, Dikar underscored that this acquisition solidifies its unwavering commitment to the local region and its steadfast support for the Basque industry. While the specific purchase price for Ternua was not disclosed by the co-operative, Dikar clarified that this transaction aligns with its broader diversification strategy. It also significantly bolsters its standing within the outdoor sector, an area where it already operates successfully with its Columbus brand, known for its specialized outdoor activity equipment.

Integrating Ternua into Dikar's brand portfolio is expected to unlock substantial synergies, particularly in areas such as product development, marketing initiatives, supplier networks, and sales channels. Sources familiar with the deal highlighted that this move will also amplify Dikar’s presence in key European and digital markets, concurrently reducing its reliance on the U.S. market. Furthermore, this operation is rooted in the shared values of Mondragon, aspiring to safeguard industry, employment, and the heritage of a globally recognized Basque brand, fostering its ongoing success within a stable, internationally focused, and regionally committed business model.

Dikar, established in 1969 and headquartered in Arrasate (Gipuzkoa), specializes in the hunting, sport shooting, and outdoor sports sectors. The co-operative maintains a global presence through its two subsidiaries: one located in Lawrenceville, United States, and another in Aveiro, Portugal. Collectively, Dikar's head office and its international subsidiaries employ a workforce exceeding 250 individuals.

As the Ternua Group systematically sells off its four business units, a buyer has also been secured for its fashion brand, Loreak Mendian, which the group originally acquired in 2019. This transaction ensures that Loreak Mendian will retain its Basque roots, with Gipuzkoan company Borobitex stepping in as the new owner, as reported by local media outlets El Correo and El Diario Vasco.

The acquisition of Loreak Mendian was formally authorized by Commercial Court No. 1 in Donostia on September 15. Borobitex, a limited company based in Irún, is notable for being backed by three employees with existing ties to the brand, including one of its original founders, Víctor Serna. This sale of Loreak Mendian’s business unit critically secures the continuity of 18 jobs, contributing to the broader effort to minimize job losses from the Ternua Group's initial workforce of approximately 180 employees at the outset of the proceedings.

In parallel with these two significant divestments, the Basque conglomerate is actively engaged in efforts to ensure the continued viability and operation of its remaining two brands, Astore and Lorpen, as it navigates through its comprehensive restructuring process.