The self-styled “Chinese LVMH”, just born, is already over. Shandong Ruyi has not yet closed on Bally: according to Reuters, the textile group has not managed to get the 600 million dollars necessary to finance the operation. Given the group’s financial difficulties, exacerbated by Coronavirus emergency, there are doubts that it will be able to honour the deal in the future.
It hasn’t closed on Bally yet
The announcement regarding the agreement for the sale of Bally from JAB Holding, based in Luxembourg, to the textile group dates back to February 2018. Two years later, we learn that closing has not yet come to an end. And, given the worsening financial situation of the Chinese group, it could be at risk.
Solid thanks to JAB
“Bally is lucky to continue to enjoy the support of its sole shareholder, JAB – says a note issued by the Swiss brand -. JAB continues to support Bally’s activities. The brand’s financial position remains solid. We look forward to continuing our strong performance. Any pending transactions between JAB and Shandong Ruyi do not affect our efforts to consolidate Bally’s presence and global positioning”.
Shandong Ruyi’s difficulties
News about the difficulties of the Chinese group have been recurring for some time. The deal with Bagir was recently canceled: the Israeli company, in fact, sued the former partner in Court for default. The Chinese company, which controls SMCP and Acquascutum among others, is burdened by the debt taken on to continue its acquisition season for European luxury.