The Attachment Group Sells Vigna S'S Clothing Brand To Winnie The Pooh.

Group to China

Retailer

Fashion Limited by Share Ltd sells the leisure clothing brand Winnie the bear, using the 1 trillion won won debt.

Vickas also issued the latest announcement on Friday night, formally announcing the acquisition of the Teenie Weenie Winnie bear brand and its brand related assets and businesses in cash by E-Land Fashion Hong Kong Limited fashion Limited Hong Kong Company. The estimated value of the paction is 5 billion 700 million yuan.

The deal does not involve the Teenie Weenie Winnie bear brand's South Korea, Hongkong and Taiwan businesses. It is expected that the delivery will be completed by the end of 2016. The E.LAND Co. and Ltd. attachment group will first split the Teenie Weenie Winnie bear brand in China.

The Teenie Weenie Winnie bear, who entered the mainland in China 12 years ago, now has about 1400 Teenie Weenie Winnie bear sales outlets in domestic department stores and shopping centers. Last year, it earned 446 billion 200 million won (2 billion 670 million yuan), and recorded a net profit of 90 billion 300 million won (540 million yuan), with a profit margin of about 34%.

Lee Gyu-jin, vice president of E.LAND Co., Ltd. attachment group, said the advantage of Teenie Weenie Winnie bear is that it has been localized in China as a Korean brand.

Lee Gyu-jin also pointed out that Korean fashion companies can quickly embrace the trend, and the popularity of Korean pop culture and Korean pop culture. Korean clothing and cosmetics are widely accepted and even sought after by Chinese consumers, making Korean brands more and more popular.

According to data from E.LAND Co. and Ltd. attachment group, the group's financial position is deteriorating and it needs to repay 4 trillion and 500 billion won debt in the year.

Lee Gyu-jin pointed out that the group would raise the bid price if not time pressed, but now selling Teenie Weenie Winnie bear will help speed up the financial restructuring and reduce the debt to equity ratio by 1/3.

The E.LAND Co. and Ltd. attachment group also introduced Korean brands such as Eland attachment, SPAO, Roem and Prich into the mainland, including Teenie Weenie Winnie bear, which has more than 8000 stores in China.

This year, the group wanted to list China's business in the open market, and later decided to sell the Teenie Weenie Winnie bear. The group then cancelled the plan. The group expected Teenie Weenie Winnie bear to sell 2 trillion won.

In 2014, Vigna S listed only high-end ladies' brand VGrass, which was founded in 2003, and the brand of Yun brocade, which was purchased by 135 million yuan in August 2015.

In 2015, the group declined for the first time in 7 years, and its revenue was 824 million 400 thousand yuan, down 2.7% from the same period last year. Net profit fell by 18.9% to 112 million 100 thousand yuan.

According to the statistics of the China National Business Information Center, the overall occupancy rate of VGrass in China's high-end women's clothing market in 2015 was 0.94%, second only to Mass Phil, Ya Ying and Jiu Zi.

The average price of VGrass in the first half of 2016 was 2803 yuan, up 12.7% from 2487 yuan in the same period last year.

Ben Cavender, an analyst at China market research group, a market research firm, points out that Vigna S hopes to increase her customer base by Teenie Weenie Winnie bear. But the Teenie Weenie Winnie bears overlap with the fast fashion brands such as Uniqlo UNIQLO, H&M and Forever 21, and will face fierce competition.

According to the data of Euromonitor International Europe, China's clothing market Shanghai Lanzhi home and Uniqlo UNIQLO are the two most popular brands in the market in 2015, to 1.2% and 1% respectively.

In the first half of this year, Vigna S's sales accelerated back, and revenue fell by 15.5% to 371 million 600 thousand yuan a year. During the period, the brand continued to optimize the store portfolio, shut down the shops that were not in conformity with the strategy, and reduced the total number of stores from 281 in the same period last year to 215, down 23.5% from the same period last year.

Net profit decreased from 60.8% yuan to 29 million 820 thousand yuan from 73 million 740 thousand yuan in the same period last year. The group pointed out that the non recurring gains and losses during the period decreased from 4 million 90 thousand yuan in the same period last year to -926 million yuan.