Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News Ribo Fashion Subsidiary Bankruptcy Liquidation Application Accepted

Ribo Fashion Subsidiary Bankruptcy Liquidation Application Accepted



On October 20, Ribo Fashion announced that the bankruptcy liquidation application filed by its holding subsidiary Guangzhou Tengyi Clothing Co., Ltd. with the court has been accepted, and it will officially ent…

On October 20, Ribo Fashion announced that the bankruptcy liquidation application filed by its holding subsidiary Guangzhou Tengyi Clothing Co., Ltd. with the court has been accepted, and it will officially enter the bankruptcy liquidation process. It will no longer carry out production and business operations. A former executive of the company told reporters from the Financial Associated Press that the misplaced positioning of the bankrupt sub-brand CRZ has prevented the brand from enjoying the dividends of the trend. There may be opportunities to focus on the main business in the future, and multi-brand management has always been a pain point in the clothing industry.

Guangzhou Tengyi Clothing Co., Ltd. (hereinafter referred to as “Guangzhou Tengyi”) is the operating entity of CRZ, a women’s fashion brand owned by Ribo. The brand was established in 2007 and its target customer base is For Millennials aged 22-35.

In the 2020 semi-annual report, Ribo gave a risk warning about the CRZ brand’s bankruptcy failure, and explained that it was due to the inability of brand positioning and product design to accurately grasp fashion trend information. Continuous losses occurred, and losses gradually amplified under the influence of the epidemic. According to the annual report, CRZ’s operating income fell by 10.06% and 24.11% in 2018 and 2019 respectively.

A former executive of a company told a reporter from the Financial Associated Press, “CRZ is a trendy brand positioning, but it focuses on women. This is A very strange combination, because trendy brands are unisex and have no gender distinction. This misplaced positioning means that the brand does not enjoy the dividends of the trend.”

The announcement stated, The liquidation of Guangzhou Tengyi will help the company concentrate its resources on developing its core business and enhance profitability, and will not have an adverse impact on the company’s existing business operations.

“After the company went public, its main business continued to decline. No single brand has grown bigger, and it is even more difficult for multiple brands. This kind of shrinkage is actually good, like the shrinkage of Pathfinder. Concentrating resources on main brands has achieved results.” A former executive of the above-mentioned company said, “Multi-brand management has always been a pain point in the apparel industry and requires the accumulation of a strong team of professional managers. This is an industry-wide problem.”

CRZ accounts for about 10% of daily broadcast’s operating income. The main brand of daily broadcast is broadcast. Its revenue in 2019 was 928 million yuan, accounting for about 85% of the total revenue.

The 2020 mid-term report shows that all five brands have experienced significant performance declines, among which the revenue of the main brand “broadcast” decreased by 35.25%, CRZ Revenue decreased by 65.69%.

In addition to broadcast and CRZ, Ribo also has high-end intellectual women’s clothing brand PERSONAL POINT, Shaoshu women’s clothing brand MUCHELL and children’s clothing brand broadcute. The latter two are new brands founded in 2018. Brands, the business scale of these three brands is relatively small.

The decline in performance may continue in the short term. More than 80% of Ribo’s revenue comes from offline channels, but the number of offline stores continues to decrease. In the first half of 2020 120 full-brand stores have been closed. In 2019, before the epidemic, the number of Ribo stores also decreased by nearly 200, accounting for about 20% of the number of stores.

</p

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/30848

Author: clsrich

 
Back to top
Home
News
Product
Application
Search