Ted Baker enters Chinese joint venture to expand brand
By Sahar Nazir - Apr 10th, 12:54
Ted Baker has agreed to a new joint venture with Shanghai LongShang Trading Company to expand its brand in the East Asia region.
Shanghai LongShang will manage Ted Baker’s retail, concessions and online channels in mainland China, Hong Kong and Macau.
According to the British fashion retailer, the deal will boost its group profit before tax in its current financial year.
Meanwhile, Ted Baker’s net cash contribution is anticipated to be around £3.4 million.
As part of the deal, Ted Baker will transfer its operations in China and Hong Kong, which means transaction-related costs could amount to £6.5 million.
Shanghai LongShang will hand over rights to a Hong Kong investment vehicle formed by LongGoal Holdings and Infra-Apparel Group.
“Over recent years we have invested in introducing the Ted Baker brand to Chinese customers, and we are confident that the creation of this joint venture will build on this platform, and deliver meaningful long-term growth,” Ted Baker chief executive Lindsay Page said.
“We firmly believe that China has the long-term potential to become one of the largest single global territories for the Ted Baker brand.”
The deal is also part of Ted Baker’s mission to expand its presence in Southeast Asia.
Ted Baker currently has three stores in Hong Kong, as well as five stores and one outlet in Mainland China.
In the past year, the retailer has been embroiled in sexual harassment allegations as news broke out that its founder and chief executive at the time Ray Kelvin was creating a culture of “forced hugging” with employees.
Kelvin was forced to resign in early March.
Retail sales beat expectations in February
19/04/2019 - 12:39
SA shoppers spent more than expected in February, with retail sales growing 1.1% year on year, led by expenditure in the textiles, footwear and clothing sector.
Pick n Pay surprises local schools with Easter treats
19/04/2019 - 11:57
Two schools were recently surprised with chocolate eggs and hot cross buns ahead of the Easter Weekend.
Asian revenue surpasses European for first time at L’Oreal
18/04/2019 - 09:07
L’Oreal got more revenue from Asia than from Western Europe for the first time last quarter as the region’s surging demand for luxury products continued to resist the drag of a slower Chinese economy.
Easter is also a feast for criminals, retailers and consumers warned
18/04/2019 - 09:01
There is a tendency among criminals to use the Easter long weekend - and its spike in shopping - to their advantage, says Richard Phillips, joint CEO of retail cash management company Cash Connect.
Checkers hot cross buns go viral
17/04/2019 - 13:42
Checkers hot cross buns are trending on social media and South Africans are in stitches following the release of a viral video in which a false-positive breathalyser reading was recorded for a police officer.