Menswear Terminates The Acquisition Of The Capital Market

Here world Clothing and shoes The Xiaobian of the network tells you that the nine men's men's clothing terminates the purchase of wave Ken and turns to the capital market.

In mid October, the king announced that it would suspend the acquisition of Shanghai's plan. The announcement said that after signing the framework agreement with Shanghai, Pan Ruping and the company agreed to actively promote the implementation of relevant work in accordance with the agreement. In the follow-up implementation process, the company proposed to terminate the framework agreement and no longer acquire the shares of Shanghai Tang Ya Garments Co., Ltd. according to its own actual situation and market change reasons. This is the second time after the failure of Semir's acquisition of GXG and the takeover of garment industry this year.

He hoped to bring about a breakthrough in performance. In 2013, the performance of nine Mu Wang declined sharply, and its revenue decreased by 3.81% to 2 billion 500 million yuan compared with that of the previous year. Net profit was also reduced by 19.62% to 537 million yuan compared with the same period last year. In response to this grim situation, the company will actively expand its multi brand business in the future, which may include the operation of its own brand and the operation of other men's clothing brands through mergers, acquisitions and agents.

And Lang Ken is in the king of nine. Buy In the plan. The similarity between Lang Ken and the nine Mu Wang brand is that it also started from trousers and has developed for nearly 20 years. Its trousers have strong competitiveness and strong market position in the senior men's trousers Market. As of April this year, the sales volume of the company was about 100 million yuan, and its net profit was about 30 million yuan, but the number of stores was relatively small.

In view of the relevant business and assets of the wave Ken brand, which are currently distributed under different enterprises controlled by herbo Wen and Pan Ruping, in order to reduce the risk of transaction, nine farmers and Herba Wen and Pan Ruping, based on the principle of "first integration and re acquisition", agreed that the "Shanghai Tang Ya Fashion Co., Ltd." which was invested by He Bowen and Pan Ruping first bought the existing "wave Ken" men's clothing product related business and corresponding effective assets and personnel, and then invested by the king of nine Mu to buy the 100% equity interest of Shanghai Tang Ya Fashion Co., Ltd.

Accordingly, in April 16, 2014, the company signed a framework agreement with Pan Ruping and He Bowen, which has been signed by Pan Ruping and Pan Ruping. The framework agreement shall be established after the signature and seal of the parties concerned, and shall come into force after deliberation and approval by the board of directors of the company. Only in compliance with the conditions stipulated in the framework agreement, will nine herdmen sign a formal share transfer agreement with Herba Wen and Pan Ruping to acquire the 100% equity interest of "Shanghai Tang Ya Fashion Co., Ltd.".

Only half a year later, the purchase plan declared abortion. The 2014 half year report showed that revenue in the first half of 2014 was 970 million yuan, a year-on-year decrease of 16.56%, net profit of 220 million yuan, a decrease of 24.8% compared with the same period last year, and the decline in performance was deepened. This is mainly due to the depressed macroeconomic environment and the continuing downturn in terminal consumption.

What is intriguing is that, on the one hand, the purchase plan is terminated. On the other hand, King Mu will idle funds into the capital market. In October this year, two announcements were made for the purchase of financial products, with the purchase amount of 800 million yuan and 900 million yuan respectively. Some analysts say this may be related to the continuing downturn in the domestic apparel industry. Rather than buying a business model with similar business models, limited growth potential and uncertain future development in the downturn, it would be more prudent to have a large amount of cash flow to enjoy the benefits of financial products.

In addition, the failure of Semir to buy GXG was unsuccessful. In 2013, Semir announced that it would buy GXG, but in January this year, the acquisition ended unexpectedly. Earlier, on Saturday, the footwear industry acquired D:FUSE brand of hepper shoemaking, and there also appeared a "massive indigestion" of the middle level team and the decline in sales performance. These cases have cast a shadow over the merger and acquisition of Chinese local apparel enterprises.

Angeli Jan, the founder and clothing marketing expert, says each company looks at the market with different views and attitudes, so they can have different products and face different consumers. This vision and attitude is the culture and brand characteristics of an enterprise. These differences may be difficult to integrate for the merged brand. Because integration means the disappearance of the soul of the brand itself. Therefore, after merger and acquisition, various problems are inevitable. It depends on how the two sides look at these differences and differences.

Zhang Qingye, a strategic consulting expert in the sporting goods industry, believes that the rise of an enterprise will definitely not be a key behavior, but also an advantage product, that is, the original power of the brand.

Also, the analysis points out that M & A brands should be clothing It is an inevitable choice for enterprises to expand their market continuously. However, M & A is not a simple acquisition, but a merger. If the merger can not examine each other's advantages and disadvantages and enhance their attributes, it will weaken the value of their respective brands.