Sandro’s Messy Split with Ruyi…
When Chinese group Ruyi bought SMCP in 2016, the French contemporary fashion group operating Sandro, Maje and Claudie Pierlot, it seemed like a recipe for success. The deal combined established European brands with a local partner to accelerate growth in the key market.
But now financial difficulties at the Chinese group are clouding SMCP’s future. Lenders seized 29 percent of the company after it defaulted on bond payments, and are set to vote to oust Ruyi’s representatives from the board Friday. Meanwhile, Ruyi has sought to shelter its remaining shares, selling 16 percent of SMCP to a shell company in the a British Virgin Islands for just €1. Read the full story by BoF’s @robwilliams28 on businessoffashion.com [Link in bio] ? @sandroparis
When Chinese group Ruyi bought SMCP in 2016, the French contemporary fashion group operating Sandro, Maje and Claudie Pierlot, it seemed like a recipe for success. The deal combined established European brands with a local partner to accelerate growth in the key market.
But now financial difficulties at the Chinese group are clouding SMCP’s future. Lenders seized 29 percent of the company after it defaulted on bond payments, and are set to vote to oust Ruyi’s representatives from the board Friday. Meanwhile, Ruyi has sought to shelter its remaining shares, selling 16 percent of SMCP to a shell company in the a British Virgin Islands for just €1. Read the full story by BoF’s @robwilliams28 on businessoffashion.com [Link in bio] ? @sandroparis
