Although luxury brands tend to see Chinese customers as their saviour, their downfall could, on the flip side, be Chinese owners.
News broke last week that London Savile Row stalwart Gieves & Hawkes could be in jeopardy: its parent company, Trinity Limited, is itself owned by the Shandong Ruyi Group, a Chinese textile and clothing company in Shanghai that is facing debt issues.
In a court hearing on November 4, Trinity Limited lost its appeal against a winding-up order and, unless a buyer is found, Gieves & Hawkes – a 250-year-old house synonymous with tailoring excellence – will go into liquidation.
The suit maker is not the only Chinese-owned fashion retailer in danger of being shut down. Until very recently, Shandong Ruyi owned a majority stake in SMCP, the French firm behind fashion labels Sandro, Maje and Claudie Pierlot – all of which have been struggling for the past year.
Read More at https://www.scmp.com/lifestyle/fashion-beauty/article/3155285/why-western-luxury-brands-bought-chinese-investors-fail