Greenwoods acquired by Bosideng
Chinese apparel group Bosideng International Holdings has acquired menswear retailer Greenwoods.
Yorkshire-based Greenwoods, which was founded in 1860, operates 88 stores across the UK. In the years to 31 December 2012 and 2013, the retailer reported revenue of £23 million and £24.4 million respectively while making net losses of £780,000 and £2.8 million.
The total consideration for the acquisition is RMB40 million (£4 million) which will be funded by Bosideng’s internal resources. In addition, the group has advanced a loan of £8 million to satisfy Greenwood's requirements for working capital.
Bosideng said the acquisition would mprove both the group’s market share and business scale in the UK menswear sector, and help the group to absorb experienced talent. The move will also help Bosideng to open a stable, reliable and low-cost retail channel for its own down apparel brands which have a similar positioning and target customer base to that of Greenwoods.
Bosideng’s London flagship store will share some operating costs with Greenwoods to help improve operating efficiency for both retailers.
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