Chinese apparel giant Bosideng has bought loss-making menswear retailer Greenwoods to build scale in the UK.
Bosideng, which has 13,000 shops in its home market and a central London shop, paid RMB40m (£4m) for 88-store Greenwoods.
Greenwoods is expected to have notched up a loss of £2.8m in the year to December 2013 on sales of £24.4m. Bosideng has already provided Greenwoods with a loan of £8m for working capital.
Bosideng said: The management of Bosideng believes that the acquisition will, on one hand, improve the group’s market share and business scale in menswear industry in the UK, and help it absorb talents with rich experience in the industry.
“On the other hand, the acquisition will enable the group to quickly open a stable, reliable and low-cost retail channel for its down apparel brands which have positioning and target customer base similar to those of Greenwoods, further expanding the group’s export business in down apparel.
“In terms of cost, Bosideng’s London flagship store will share some operating costs with Greenwoods, thus enhancing each other’s operating efficiency.”
Last year Bosideng’s sales were RMB9.3bn (£957m), generating profit of RMB1bn (£102m).