The company has bought 50.9% of the shares from the previous majority shareholders of the lingerie company. Following the deal, the Austrian company hopes to boost its expansion in Asia.
Fosun seals the purchase of Wolford. The Chinese conglomerate, which controls Lanvin and is one of Caruso’s shareholders, has now completed the acquisition of 50.9% of the Austrian hosiery company. Following the deal, Wolford plans to boost its expansion in Asia, particularly in China.
“As China continues to drive the global luxury market, Wolford can leverage Fosun’s expansive China and global resources to grow and strengthen its high luxury positioning while maintaining its exceptional high quality of production in Europe”, said Joann Cheng, president of the group’s fashion division, Fosun Fashion Group.
Fosun has acquired the stake of the previous majority shareholders and, as part of the agreement, has committed to inject capital into Wolford, which has been immersed during the last year in a restructuring process after escalating its losses.
Fosun will subscribe a capital increase in Wolford and boost its expansion in Asia, although it will maintain production in Europe
As part of this process, the group axed up more than fifty within its headquarters in Bregenz (Austria). In the last fiscal year (ended April 2017), the company recorded a gross loss of 15.7 million euros.
Fosun Fashion Group has already a large portfolio of European fashion brands such as Lanvin, St John Knits, Caruso, Tom Tailor and Iro, among others. Its parent company, Fosun International, was founded in 1992 and has been listed in the Hong Kong stock exchange since 2007.