La Natsu Bell Stores 13 Stores A Day, And The Men'S Wear Brand Applies For Bankruptcy.

Following the sale of the seven brand of the e-commerce brand, La Natsu Bell's previously acquired menswear brand O.T.R. will leave the listed company system in another way.

Recently, La Natsu Bell announced that the company holding subsidiary Jack Walker (Shanghai) Garments Co., Ltd. (hereinafter referred to as "Jack Walker") continued to lose money and could not continue to operate. It intends to apply for bankruptcy and liquidation to the people's court. In view of the fact that the bankruptcy liquidation has yet to be accepted and ruled by the court, there is still uncertainty in this matter.

Jack Walker was bought by La Natsu Bell in 2015 and mainly engaged in clothing and clothing brand O.T.R.. Laxabel pointed out that the application for bankruptcy was based on various reasons, including the actual situation of Jack Walker's continuous operation loss and insolvency, as well as laxabel's future development strategy of focusing on core advantage brands and the current operation and capital status of the company.

La Natsu Bell relevant responsible person to the international finance Daily reporter said, in the future La Natsu Bell to "peace and comfort to make women's clothing", shrink focus.

3 years investment will come to an end

In the weekend of December 2015, O.T.R set up a booth at Zhongsheng world mall atrium in Xhenzhuang, Shanghai, and invited several male models to take the show. At that time, the o.t.r. brand opened its first store in the mall, covering an area of hundreds of square meters.

In May of this year, La Natsu Bell announced an investment agreement with Jack, Walker, a casual menswear fashion company, to inject 75 million yuan into Jack Walker, and La Natsu Bell held 69.12% of Jack Walker directly after the transaction was completed.

Jack Walker was founded in 2009 and is located in the international casual men's wear. The product line includes leisure, sports, cowboys, business and other series. He is good at "short, flat and fast" business mode. The core management team of the garment enterprise has worked in fast fashion enterprises, for example, founder Liu Changqiao is from UNIQLO.

Wang Yong, executive vice president of La Natsu Bell, said in an interview with the media that according to the development of foreign apparel retailing industry, only multi brand strategy can continue to develop.

According to La Natsu Bell's thought at that time, the acquisition helped the group consolidate its leadership in the Chinese leisure apparel market. However, it is clear that the acquisition of Jack Walker did not bring the expected effect to LA ShaBel.

In the announcement, La Natsu Bell said that when Jack Walker was acquired in 2015, he mainly engaged in clothing and apparel brand O.T.R.. The brand is still in the initial stage of cultivation and development, and its brand competitiveness is not strong enough. In the future, it still needs a lot of capital investment, and the profit outlook can not be optimistic.

Allegedly, Jack and Walker management tried to introduce strategic investors to carry out the third party reorganization, internal management adjustment and other ways, did not solve Jack Walker's current capital and business difficulties, their assets are not enough to repay all debts, and do not have sustainable operation ability. In order to protect the legitimate rights and interests of all Jack Walker's creditors, the bankruptcy and liquidation procedure can be initiated in accordance with the law.

La Natsu Bell said that the company is currently in a critical period of transformation and development, actively implementing strategic contraction, focusing on the development of core women's clothing business. For non core businesses with uncertain growth prospects and businesses that are expected to suffer significant losses or require more capital investment in the future, resource investment will be significantly reduced or stopped according to the current operating situation. The board of directors of the company thinks that it is in line with the company's need to concentrate resources and develop core businesses to stop operation and apply for bankruptcy liquidation.

La Natsu Bell also pointed out that assuming that the final bankruptcy liquidation is completed, Jack and Walker will no longer be included in the company's consolidated financial statements. With the book volume estimated in September 30, 2019, the bankruptcy liquidation of Jack Walker will not affect the net profit attributable to the shareholders of the parent company by -4100 million.

Business adjustment and contraction front

In the clothing industry, La Natsu Bell was once a representative of civilian fashion. Founded in 1998, on October 9, 2014, under the halo of "Chinese version Zara", laxabel was listed on the main board of Hong Kong stock exchange. In September 2017, after breaking through A-share market for many times, laxabel finally landed on the Shanghai Stock Exchange.

But after the scenery, the company's performance is somewhat depressed.

This year's semi annual report shows that La Natsu Bell's revenue fell 9.78% to 3 billion 951 million yuan, net profit fell 311.2% to -4.98 billion yuan. For La Chabel, who used to have a "highlight moment", such performance is difficult to match with its existing brand influence.

At that time, La Natsu Bell said that the decline in revenue was mainly due to the company's active implementation of a strategic contraction strategy. During the reporting period, the company continued to optimize its offline outlets and closed down direct, inefficient and loss retail outlets to reduce the ineffective investment of resources. In addition, influenced by the company's strategic contraction strategy, slowing consumption growth and the reduction of customer flow in physical stores and other factors, the operating revenue of several major women's wear brands of the company decreased by more than 20% year-on-year.

As for losses, La Natsu Bell said that the actual effect of such measures as the gross profit margin fell, sales gross profit decreased correspondingly, new leasing criteria were implemented, and the company's business transformation and adjustment, and the reduction of capital and efficiency were not fully reflected.

In the first 10 years, the company has experienced the stage of hard work and entrepreneurship, and in the second 10 years, the company has achieved rapid development by relying on the full direct operation and multi brand mode, said laxabel in an interview with the international financial news. As the starting point of the company's third 10 years, 2019 is experiencing a large-scale strategic contraction.

In fact, the reporter noted that La Natsu Bell had already mentioned the strategy of focusing.

In May 7th this year, La Natsu Bell issued a notice that in order to speed up the transformation and adjustment, the company intends to sell the 4.05% stake of Agel Ecommerce Ltd, which is a subsidiary of Hangzhou. The transferee is the Hangzhou Yan Er enterprise management consulting company, with a transaction consideration of 200 million yuan, which means that the seven online brands will also be stripped. According to LA Chabel, the sale helps the company further focus on its core brands.

As of the end of June 2019, the number of retail outlets in La Natsu Bell was 6799, a net decrease of 2470 from the end of last year, and the number of outlets decreased by 26.65%.

The independent critic of the garment industry, Ma Gang, told the international finance daily that La Natsu Bell's situation is related to its development stage. "Just listed, rich, want to do anything to see the opportunity outside. Later, it was found that energy was limited and only limited things could be focused on, and contraction was inevitable. " In Magang's view, it is wise for La charbel to sell assets and close loss making stores at present.

At present, the external environment of the domestic garment industry is still not good. Some enterprises said frankly that in the first half of 2019, clothing consumption was weak, which was lower than the growth rate of total retail sales of consumer goods.

Against this background, La Natsu Bell recently pointed out to reporters that in the three quarter of 2019, it will continue to implement the offline retail outlets optimization strategy, and plan to retain 6000 operating outlets within the country, improving the efficiency and profitability of single store operation. The main business is expected to enter a more benign development track in the fourth quarter.