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ZURICH/MILAN, July 3 (Reuters) - Swiss luxury company Richemont has sold Chinese fashion brand Shanghai Tang to a consortium of investors led by Italian businessman Alessandro Bastagli, the groups said on Monday.
Founded in 1994 by Hong Kong businessman David Tang as a high-end tailor, Shanghai Tang has 32 boutiques worldwide, selling Asian-inspired clothes for men and women as well as accessories and homeware.
Bastagli, in a statement, said he was working to “relaunch and consolidate Shanghai Tang ... focusing on international expansion,” and plans to set up a creative and managerial team to do so.
He said he had acquired a controlling stake in Shanghai Tang with Hong-Kong based private equity firm Cassia Investments and a British investment fund, whose name was not disclosed.
He did not give details of the size of the stake or the purchase price.
Richemont, which makes watches under brands including Cartier, IWC and Piaget, and has been grappling with dwindling demand in its major markets, took a controlling stake in Shanghai Tang in 1998 and acquired full ownership 10 years later.
“The transaction will have no material impact on Richemont’s balance sheet, cash flow or results for the year ending 31 March 2018,” Richemont, which in May reported a 46 percent drop in annual net profit, said in a statement.
It said the deal was completed on June 30.
Florence-based Bastagli owns textile company Lineapiu Italia as well as three fashion brands, mostly focused on sportswear. (Reporting by Joshua Franklin in Zurich and Giulia Segreti in Milan; Editing by John Miller and Susan Fenton)