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Tag: IT Group

  • I.T Group founder and CVC plans to delist from stock market

    I.T Group founder and CVC plans to delist from stock market

    Fashion retailer I.T Group has proposed to privatize its business in a cash deal worth $168 million on Sunday, according to a Hong Kong Stock Exchange filing.

    The deal, backed by private equity firm CVC Capital Partners, will see non-founder shares bought at $3 Hong Kong dollars apiece in cash, which is a 55 percent premium to the stock’s last closing price on Nov 30. Under the proposal, company founder Sham Kar Wai will retain 50.65 percent ownership, with CVC owning the remainder 49.35 percent after going private. The deal is still subject to shareholder approval.

    In recent years, I.T Group has faced a similar fate as its Hong Kong-based peers such as Lane Crawford, Joyce, and Swank, struggling to keep up with retail’s digital transformation, which is dominated by Alibaba and JD.com in the mainland Chinese market.

    “While the company has adopted online strategies, it has been unable to transform business operations sufficiently for online growth and related cost-savings measures to offset a decline in sales from retail outlets,” the filing read. “In the six-month period prior to August 31, 2020, turnover for the company declined by 31.9 percent, following an annual net loss for the financial year ending February 29 2020 of $745.8 million dollars.”

    “The company foresees a long and challenging journey ahead until a full restoration of consumer confidence across most regions where the company operates…These factors require the company to re-strategize, undertake a deeper business transformation, and restructure in order to achieve long-term sustainable growth,” the filing said.

    As with the wider industry, I.T has faced sharp declines in consumer spending across several key markets due to the outbreak of COVID-19, but it also earlier grappled with the impact of pro-democracy protests in Hong Kong. I.T’s outlets themselves also became targets in protests earlier this year because of a perceived pro-Beijing stance of its founder, Sham. Meanwhile, inbound tourism to Hong Kong has plunged this year, with arrivals during the third quarter declining by 99.7 percent from a year earlier.

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  • Hong Kong protests against I.T Group

    Hong Kong protests against I.T Group

    Hong Kong’s Causeway Bay was yesterday the center of the largest and most disruptive protest activity since the outbreak of Covid-19, forcing stores to close and shoppers seeking shelter from tear gas.

    And they revealed a new target: Hong Kong-listed apparel retailer I.T Group and its founder Sham Kar Wai.

    Angered by moves in Beijing to impose new national security laws on the territory, thousands of protesters took to the streets yesterday, ignoring social-distancing practices and unconcerned that the gathering had not been authorized by police.

    About 180 people were arrested after police fired tear gas and pepper spray and used one of its water cannons to shower groups gathered on Hennessy Road and surrounding streets.

    I.T Group’s A Bathing Ape store on Lee Garden Road had all of its feature windows smashed, with piles of glass fragments covering the footpath.

    Around the corner, its Commes de Garcons store received similar treatment. As during last year’s protests when retailers perceived to be pro-Beijing had stores targeted, nothing was stolen.

    Images of the damaged I.T stores were circulated on Twitter along with explanations why the company is now a target. Sham Kar Wai has been identified by the protest movement as “pro-Blue” after photographs were circulated allegedly showing him attending a police social event.

    “…This has absolutely NOTHING to do w/Comme des Garcon. If anything, I admire Rei Kawakubo A LOT!,” a person identifying themselves as Chloe tweeted, referring to the damaged store. “Her inspiration is often driven by freedom and rebellion. On that note I hope Dover St Market and CDG would stop their partnership with Sham Kar Wai’s I.T.”

    In a long stream, the person also shared internal memos instructing I.T staff to urgently remove stock from shelves from the US brand Awake NY after it posted messages last year supporting protests via tweets on its own channel:

    Meanwhile, across town, live television broadcasts showed several people in restraints being escorted from the Harbour City shopping centre in Kowloon, some by plainclothes police.

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  • Heineken Partners With A Bathing Ape For Its Capsule Collection

    Heineken Partners With A Bathing Ape For Its Capsule Collection

    Hong Kong-owned A Bathing Ape has been chosen by brewing giant Heineken as its partner for this year’s #Heineken100 program, its eighth collaboration with a retail fashion brand.

    The two companies have created a capsule collection of four co-branded fashion items: a hoodie, coach jacket, t-shirt and a six-pack bottle carrier.

    Unlike previous years – when the creations were gifted only to the 100 most influential beer drinks around the globe – this year consumers can buy the merchandise at a one-day only popup in New York. The store will be open in Japanese gastropub Izakaya in Manhattan’s East Village neighborhood in New York on Tuesday (December 12).

    Last year, Heineken collaborated with luggage brand Tumi to create a series of essential travel products. Other previous partners include Public School, Garrett Leight, Union Los Angeles, Parabellum, Mark McNairy, Kith and Neighborhood Japan.

    “The goal of the #Heineken100 program has always been to connect the brand with people who drive culture forward,” said Coltrane Curtis, founder and managing partner of Team Epiphany, the marketing agency behind the initiative. “This year, we listened to the fans. By opening up #Heineken100 to New Yorkers, we’re able to directly engage with consumers in one of the most influential cities in the world.”

    “This year’s #Heineken100 campaign brings together two brands with global ubiquity, whose consumers have a taste for luxury and innovation,” added Raul Esquer Lopez, Heineken USA brand manager. “We’re thrilled to partner with Bape, an iconic brand that shares a history of inventiveness through creating highly-aspirational imports for the man of the world.”

    The half-zip pullover hoodie will sell for US$399, the camo coach jacket for $413, the t-shirt for $112 and the cooler for $115. All feature dual branding.

    Bape is owned by Hong Kong’s I.T. Group.

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