By now, you’re probably aware that Zara has been embroiled in a fierce battle with the US Justice Department over its anti-competitive practices.
In response, the company announced it would be selling the cosmetics company’s name to a consortium of American and foreign investors, as part of a $2 billion buyout.
But a report from The Wall Street Journal on Monday claims that ZA has been quietly working on a solution to the ongoing dispute.
The Journal alleges that ZARA has developed a new name and brand for its cosmetics business called Zara Beauty Salon.
The company is planning to use a company named Beauty Salon USA LLC (ASLP) to operate the new company.
According to the report, ASLP is an umbrella entity for a number of companies that specialize in the cosmetics industry.
As such, the new name could be for a new company that would be separate from ZARA.
This is not the first time that ZALP has been linked to a merger.
The Journal reported that ASLP and a number to ZARA’s Beauty Salon were also connected to a recent deal in which Zara sold a stake in ASLP to the beauty retailer for $2.4 billion.
As it stands, ZARA already has several brands that are related to its name, such as the new Zara Fresh collection, which is inspired by the beauty brand’s slogan.
Zara also has a cosmetics brand called ZARA Beauty Salon, which also is related to the brand’s name.
As the WSJ report states, the potential deal would allow ZARA to merge with ASLP, and the new entity could be able to use the existing name for its new cosmetics business.
As the name of the new brand implies, it will also allow Zara to use Zara as its brand name, instead of the American Beauty brand.
The report says that the new cosmetics company will have a board of directors with an established history of working in the cosmetic industry, as well as the potential for significant new revenue.
“The potential merger could lead to new revenue for ZARA and for the company, potentially pushing ZARA into profitability, but it could also hurt its reputation,” the report states.
“It’s a win-win situation, and I believe this would help the company.”
The new name will likely be announced later this year, and it’s unclear whether or not the new beauty company will be a wholly owned subsidiary of ZARA, or a part of the ASLP conglomerate.
ZARA will continue to operate under the name Beauty Salon United, but ZARA Salon USA will be renamed Beauty Salon US.
The new name is likely a play on the brand name that ZAP will use in the United States and Canada.