Shandong Ruyi Group: Negotiation With Bagir To Solve The Problem.

Recently, fashion news Drapers news, because Shandong Ruyi group did not deliver the sum of about $10 million of the Bagir group of Israel menswear garment manufacturer, Bagir plans to sue Shandong Ruyi group.
Bagir Group, an Israeli men's clothing group, was founded in 1961 and has 3 million garments annually. In November 23, 2017, Shandong Ruyi group announced that it would buy 54% shares of Bagir Group Ltd. (BAGR.L) for 16 million 500 thousand US dollars, or 12 million 400 thousand pounds, to become the controlling shareholder of the latter. At that time, Shandong Ruyi group is expanding its global market to acquire many famous fashion brands, aiming to build China's global fashion industry group. The acquisition of Bagir is intended to shift part of the processing capacity and improve the global layout.
Bagir group said in a statement that the stock of Shandong Ruyi group has provided important business opportunities for the company to expand the suit trousers production of the group's manufacturing base in Ethiopia and establish the production of jacket products. Stimulated by the news, Bagir group's share price rose sharply.
As for why the transaction is delayed, the head of the Propaganda Department of Ruyi group, Shandong, said: at the beginning of 2019, because the relevant government departments needed more time to examine the transaction, the purchase plan, which was scheduled to be completed by the end of 2018, will have to be postponed until May 2019. Since then, due to the impact of Sino US trade war, the development of textile and garment industry is facing great uncertainty. At the same time, considering that the operation of Bagir group has not been improved in recent years, as well as the reason why the Ethiopia factory did not realize the production in 2018, Shandong Ruyi group and Bagir group once again negotiated the delay in delivery.
Regarding the proposed litigation against Ruyi group of Shandong, the head of the Propaganda Department of Ruyi group of Shandong said that: in regard to the Bagir group's litigation on acquisition, Shandong Ruyi group is making friendly consultations with the other party, so that the acquisition can be properly resolved on the basis of ensuring the full protection of the interests of all parties.
Shandong Ruyi group, which is building a global fashion brand, has gradually made its decision to enter the fashion industry from the manufacturing industry in recent years, including the Japanese Renna group, the British fashion brand, the elegant fashion group, the French luxury fashion group SMCP, and the high-end brands such as the Hongkong high-end group. The source said that although the acquisition encountered some twists and turns, but still firmly confident to the high-end fashion industry transformation, the acquisition follow-up matters are still negotiating, has not been deadlocked.
Since 2020, many shopping centres have been postponed due to the outbreak of new crown pneumonia, and the retailer level has been affected. In this regard, market analysts believe that the impact of the epidemic, store sales short term pressure will have some impact. In the medium to long term, after the outbreak of the industry, after a round of industry reshuffle, the strength of the head manufacturers will usher in new opportunities for development.