Advertise with fastmoving.co.za
 
 

Ted Baker has agreed to a new joint venture with Shanghai LongShang Trading Company to expand its brand in the East Asia region.
Ted Baker has agreed to a new joint venture with Shanghai LongShang Trading Company to expand its brand in the East Asia region.

Ted Baker enters Chinese joint venture to expand brand

INTERNATIONAL NEWS

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. 

Related News

Truworths profit at nine-year low as profit plunges over 70%
16/08/2019 - 11:52
Shares in Truworths slumped to a nine-year low on Friday morning after the fashion retailer reported a 74% slide in profits amid difficult trading environments in SA and the UK.

UnionPay cards - the largest card scheme in the world - now accepted at all Pick n Pay stores across SA
16/08/2019 - 11:11
UnionPay International (UPI) has announced significant progress in the South African retail payments market through their co-operation with Pick n Pay and Absa Bank. Through a tripartite co-operation agreement, Pick n Pay, a major food, clothing, and general merchandise retailer, is now enabled to accept UnionPay cards at all of its till points across its approximately 1,800 stores countrywide.

With banana leaf lamps, H&M backs firms promising social change
15/08/2019 - 10:31
With lampshades made by Indian women and trays from East Africa, H&M said that it had become the latest retail giant to back businesses with a mission to do good, as pressure mounts to end throwaway consumerism.

Kit Kat goes solar at Benoni Cash & Carry site
15/08/2019 - 09:11
In a bid to reduce its carbon footprint, mitigate load shedding and become less reliant on the national grid, the Kit Kat group has completed a solar power installation at its Benoni Cash & Carry store.

Choppies to exit SA market, chair to step down
15/08/2019 - 09:03
Botswana-based grocery retailer, Choppies, has announced that it will be exiting the South African market, four years after expanding into the country.