Ted Baker forms joint venture for China
Fashion retailer Ted Baker has entered into an agreement with Shanghai LongShang Trading Company to create a joint venture for the markets of China, Hong Kong and Macau.
The deal will involve Ted Baker selling a 50% stake in its wholly owned subsidiary Ted Baker Hong Kong to Shanghai LongShang Trading Company for around £5.7 million.
Shanghai LongShang Trading Company will assign its rights under the joint venture to a newly incorporated Hong Kong investment vehicle to be wholly owned and formed by LongGoal Holdings and Infra-Apparel Group.
While being conditional on approval from three Chinese governmental authorities, the joint venture will be responsible for operating Ted Baker exclusively in mainland China, Hong Kong and Macau and will help the retailer to drive long-tem expansion in the region.
Ted Baker has opened eight stores in the region in recent years including three stores in Hong Kong and five stores and one outlet store in China.
Lindsay Page, acting chief executive of Ted Baker, said: “We are very excited about the next stage in the growth of Ted Baker across the significant Chinese market.
“In LongGoal and Infra-Apparel, we have extremely capable partners that bring local market expertise to our brand and already well-established design, buying and merchandising skillset. We firmly believe that China has the long-term potential to become one of the largest single global territories for the Ted Baker brand.”
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