Shandong Ruyi, the Chinese conglomerate behind luxury brands such as Aquascutum, is currently embroiled in a legal battle with Portuguese fabrics manufacturer Calvelex. The dispute stems from unpaid invoices totaling over €100,000, with Calvelex threatening to take legal action against Shandong Ruyi in a Hong Kong court.
This development comes at a challenging time for Shandong Ruyi, as the company grapples with financial troubles and credit rating downgrades. Despite its ambitious plan to become the “LVMH of China” through a series of high-profile acquisitions, including renowned fashion labels like Sandro, Maje, and Claudie Pierlot, the conglomerate has struggled to manage its mounting debt.
In an effort to alleviate its financial strain, Shandong Ruyi is reportedly exploring options to offload certain assets and raise much-needed capital. The situation is further complicated by the delayed financial reports of Aquascutum, which revealed a significant decline in sales and pre-tax losses for the previous year.
Meanwhile, Shandong Ruyi’s fashion empire, which also includes brands like Gieves & Hawkes and Bally, faces uncertainty as the company works to navigate its challenging financial landscape. The outcome of the legal dispute with Calvelex and the conglomerate’s ability to address its financial woes will undoubtedly have a significant impact on the future of Shandong Ruyi and its luxury fashion portfolio.
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