After acquiring Shanghai Tang from the Richemont group less than two years ago, Alessandro Bastagli is now selling it to Lunar Capital, the Chinese investment fund.
Acquired in July 2017 along with Cassia Investment Fund and a British investment fund, Alessandro had become the Executive Chairman of the brand.
Bastagli’s decision to stop the Chinese adventure would reportedly be due to the difficulty of managing an Asian fashion brand selling mainly in China from Italy. Indeed, the 30 million dollars turnover the brand has made this year are mainly attributable to the Asian market.
Also, following some divergence of opinions with Cassia Investments, the two parties are now selling their shares, representing the majority of the company, to Lunar Capital.
Lunar Capital is a Chinese investment fund which holds several Chinese brand, especially in the junior fashion segment, in addition to Italian luxury clothing brand for children I Pinco Pallino.
When he acquired Shanghai Tang, Alessandro Bastagli had the ambitious thought to transform the widely known label in Asia into an international brand “Made in Italy”.
To carry out his vision, the Tuscan businessman had invested in an Italian production and in a prestigious showroom in Via Montenapoleone, recruiting as Artistic Director Massimiliano Giornetti, who previously collaborated with Salvatore Ferragamo, now also leaving the company.
Founded in 1994 in Hong Kong by David Tang, the brand was first fully acquired by Richemont group in 1998. As Richemont, Bastagli failed to make it evolve into a more western and young product attracting customers also outside Asia.
SEE ALSO : Richemont sells Shanghai Tang
The very rich style which could almost be qualified as baroque of the brand has not managed to seduce millennials, more attracted to luxury sportswear and really creative unique pieces.
(Source: Fashion Network)