BEIJING — A group of investors led by LVMH Moët Hennessy Louis Vuitton-backed fund L Capital Asia has bought a minority stake in Chinese contemporary clothing company Trendy International Group for $200 million.
The announcement, distributed Wednesday by Trendy, did not disclose the size of the investors' stake. Patrick Ng, Trendy's chief financial officer, confirmed that the stake was a minority one below 10 percent but declined to specify its exact size.
Trendy, which is based in the southern Chinese city of Guangzhou, owns four fashion brands including Ochirly, which is one of China's leading domestic labels. Ochirly targets young women and has fashions reminiscent of Zara or Topshop. Trendy operates 1,800 points of sale across the country, according to L Capital.
"Trendy is the leader in the masstige fashion segment in China," said Huang Hanji, a managing director at L Capital Asia. "It has a great brand portfolio, extensive retail networks and a strong management team."
Italy's Sixty Group recently struck a deal with Trendy to establish a joint-venture to develop the brands Miss Sixty, Energie and Killah, in Asia.
Trendy said it has formed a strategic partnership with L Capital, which will "provide management expertise and assistance" with Trendy's international expansion, product development and supply chain management.
"We believe L Capital can mobilize certain resources inside LVMH to help us expand out business not only in China but also in the world," Ng said. "L Capital will provide certain expertise and experience to us to enable us to strengthen our branding, business development and design."
Jacky Xu, Trendy Group chief executive officer, said that both parties are confident that "this partnership will bring steady growth to Trendy Group and enable us to become one of the most influential fashion groups in the world."
Ravi Thakran, L Capital Asia's managing partner, made a similar statement about the future growth prospects for the fashion company.
"This investment underlines our belief in the longer-term potential of Trendy Group as it emerges as one of China's pre-eminent fashion houses," he said.
China has been working hard to bolster its domestic fashion industry. Beijing's latest five-year plan for the textile sector, which was released in January, outlines goals to develop between five and 10 internationally recognized Chinese brands and up to 100 nationally known brands by 2015.
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