Ten years ago, Shandong Ruyi Technology Group (hereinafter referred to as Shandong Ruyi) spent 310 million yuan to acquire the Japanese clothing giant RENOWN. The large-scale corporate mergers and acquisitions of Japanese companies.”
However, ten years later, Rena came to the edge of life and death.
Recently, according to Japanese media reports, Rena received the Tokyo District Court’s decision to annul the bankruptcy protection procedure under the Civil Rehabilitation Law. Affected by the epidemic and other factors, clothing sales have dropped sharply, and Rena’s debt amount has reached as high as 130 million US dollars (approximately 870 million yuan). In May this year, it applied for the application of the Civil Rehabilitation Law, but it did not find a sponsor to take over the entire company. , can only start bankruptcy proceedings instead.
At the same time, in August, Reina has decided to sell major brands such as the men’s clothing brand “D’URBAN” and the high-end brand “Aquascutum” originated in the UK to other companies in the same industry. As for “Arnold Palmer Timeless” and other brand stores that have not found sales targets, they will all be closed before the end of October.
It is not difficult to see that no peer in the entire company and many businesses is willing to “take over”, so Ruina had to take destructive actions and withdraw from the clothing industry, leaving almost no “escape”.
You must know that Rena is a famous Japanese ready-to-wear brand. It was founded in 1902 and mainly operates department stores. In the 1960s, it began to produce fashionable clothing for young women, which triggered an enthusiastic response in the market. The media said that at the end of the last century, Reina’s turnover once set the highest record among the world’s clothing companies.
However, after entering the 21st century, Reina could not keep up with market changes and its operations were weak. When it was acquired by Shandong Ruyi in 2010, it had suffered losses for four consecutive fiscal years.
The question is, why did Shandong Ruyi buy this Japanese ready-to-wear brand that has entered a downward trend?
The first reason is that Shandong Ruyi at that time was the time of “spring breeze”. In 2010, Shandong Ruyi, which was only nine years old, saw sales revenue soar from 170 million yuan to 10.7 billion yuan. It was also from 2010 that Qiu Yafu relaxed his hands and started the “buy, buy, buy” mode.
With considerable strength, Shandong Ruyi is seeking to leapfrog the global industrial chain. Qiu Yafu, then chairman of Ruyi Group, said he had been looking for a company with a well-known brand, marketing network and management expertise.
Rena owns more than 30 brands such as Arnold Palmer and Hiroko Koshino, operates world-renowned brands such as “D’URBAN” and “Anya Hindmarch”, and has 2,600 stores in Japan. There are many clothing stores and brand sales stores, which are undoubtedly a satisfactory choice for Shandong Ruyi.
In fact, at the dinner on the day of the signing, Qiu Yafu admitted: “Even if Reina cannot be brought back to life in the end, it will be worthwhile if we see our own gaps from it and learn its management and experience. .”
After buying Reina, Shandong Ruyi and Reina established a joint venture in China in 2011, hoping to open 1,000 stores in China within ten years. But in 2014, the joint venture was suspended, and by this time, the number of stores in operation was less than 100. In 2016, Renown began to provide “D’URBAN” suit customization services. Due to unsatisfactory performance, the service was stopped in 2019.
Shandong Ruyi did not stop and work hard to develop, but continued to attack the world. In an interview with CCTV 2 in 2017, Qiu Yafu confidently stated that it would take 10 years to build a Chinese luxury brand that is as influential as LV and Armani – Royal Ruyi.
Public data shows that from 2010 to the beginning of 2019, Shandong Ruyi and its affiliated companies spent 40 billion yuan on frequent international mergers and acquisitions. In addition to Japan Reina, French luxury clothing group SMCP and Swiss luxury brand Bally , listed men’s clothing company Trinity Holdings, etc. have all been acquired by it, and Shandong Ruyi has also gained titles such as “Chinese version of LVMH” and “China’s largest luxury goods group”.
However, as the saying goes, “you bite off more than you can chew”, the result of S&P is that the acquired Japanese brands such as Rena not only failed to become Shandong Ruyi’s “cash cows”, but instead became “money shredders”. Coupled with its weak capabilities in fund management and industrial chain coordination, Shandong Ruyi has gradually fallen into a debt crisis.
Public data shows that as of the third quarter of 2019, Shandong Ruyi’s consolidated debt totaled more than 39.041 billion yuan, of which current liabilities exceeded 21.9 billion yuan.
Judging from the financial report of the listed company Ruyi Group, the situation is also not optimistic. On October 29, Ruyi Group disclosed its third quarter financial report. In the first three quarters of 2020, the company’s total operating income increased by 21.3% year-on-year to 1.02 billion yuan, but the net profit attributable to the parent company fell sharply by 70.9% year-on-year to 20.636 million yuan, excluding non-net Profit plummeted 161.48% year-on-year.
As the actual controller of Shandong Ruyi, in June this year, Qiu Yafu was also taken by the Chongqing Wanzhou District People’s Court to restrict consumption measures. “Relevant high consumption and consumption behaviors that are not necessary for life and work are not allowed.” “In addition, all the shares he held in Ruyi Group were pledged.
In order to reverse the decline, Shandong Ruyi has invested 20 billion yuan in the intelligent layout of the entire industry chain in the past three years. Surrounded on all sides�There is a big question mark as to whether we can make a comeback despite the hard work. </p
