MullenLowe Group has agreed to sell the majority of its shareholding in MullenLowe Japan to local management holding company bionomica KK. The new entity will be called Fabric and will remain affiliated with the MullenLowe Group network, and IPG more broadly.
According to a release, IPG and MullenLowe Group remain committed to Japan, retaining a 15% stake in the business.
Fabric will aim to use strategic thinking and storytelling to help businesses reframe problems and create shared value with customers and communities. The new management holding company is controlled and led by former MullenLowe Japan CEO, James Hollow, who has been with the network since 2013.
“This is a time of change at many levels. Covid has accelerated trends that we were seeing in what society expects from businesses and brands, pushed by government regulation, consumer demand for more sustainable options, and the relationship that customers want to have with companies both as consumers and employees,” said Hollow.
“This move allows us to focus on helping clients weave their brands into this new social fabric, by combining our heritage strengths in marketing communications with newly acquired strategic expertise and market insight.”