La Natsu Bell'S Menswear Brand "Jack Walker" Designate Bankruptcy Administrator.

Yesterday evening, La Natsu Bell, the first domestic A+H share listed clothing company, announced that the Shanghai Jinmao Cade law firm was designated as the bankruptcy administrator of the company holding subsidiary Jack Walker (Shanghai) Garments Co., Ltd. (hereinafter referred to as "Jack Walker"), and the company lost control of Jack Walker.

According to the announcement, Jack Walker received the decision of the third intermediate people's Court of Shanghai (2020) and the 03 decision No. 16 in Shanghai on February 21, 2020. After being randomly selected by the Shanghai Higher People's court, he appointed Shanghai Jinmao Cade law firm as Jack Walker bankruptcy administrator in accordance with the provisions of article twenty-second, paragraph 1, of the enterprise bankruptcy law of the people's Republic of China.

Public information shows that Jack Walker (Shanghai) Garments Co., Ltd. (hereinafter referred to as "Jack Walker") was established in 2009, with a registered capital of 16 million 194 thousand yuan, of which La Natsu Bell invested 11 million 194 thousand yuan in Renminbi, holding 69.12% of its shares; Liu Changqiao invested 3 million 380 thousand and 600 yuan in Renminbi, holding 20.88% of the shares; Shanghai Cheng Mao Cci Capital Ltd invested 1 million 619 thousand and 400 yuan, occupying the remaining 10% shares.

It is reported that La Natsu Bell acquired Jack Walker in 2015, mainly used to run the clothing and clothing brand O.T.R. Lu Jie. Since the first shop opened in Shanghai in December 2015, O.T.R. Lu has landed in many markets such as Chongqing and Jiangxi. The brand is known as the Japanese original designer brand, and the main products are men's wear, women's wear and children's wear, which are casual, comfortable and fashionable.

La Natsu Bell announced in October 2019 that the subsidiary company intends to apply for bankruptcy and liquidation notice notice that Jack Walker's clothing and clothing brand O.T.R. At the early stage of nurturing and development, the competitiveness of the brand is not strong enough. In the future, it still needs a lot of capital investment, and the profit outlook is not optimistic. Jack and Walker management have tried many times, and have not yet solved Jack Walker's current capital and business difficulties. His assets are not enough to repay all debts, and he has no sustainable operation capability.

La Natsu Bell's 2019 semi annual report shows that in the first half of 2019, Jack Walker achieved 91 million yuan in operating income and a net profit of -0.89 billion yuan. By the end of June 2019, assets of Jack and Walker totaled 120 million yuan and liabilities totaled -3.75 billion yuan.

Regarding the influence of Jack Walker's designated insolvency administrator on the company, La Natsu Bell said that at present, Jack Walker no longer carries out production and operation business, and there is no major risk affecting the company, which will not adversely affect the existing business of the company.

In addition, the company lost control of Jack Walker and no longer included in the consolidated statement. In 2019, the company has prepared impairment allowance for Jack and Walker's long-term equity investment and the full amount of the creditor's rights, and will conduct corresponding accounting treatment according to the accounting standards.