Aquascutum faces potential lawsuit over unpaid invoices

2nd December 2019

Sahar Nazir

Fashion

// Aquascutum may face lawsuit from clothing supplier Calvelex over unpaid invoices

// Calvelex may sue the Chinese owner of Aquascutum, claiming it is owed over £83,600

// The supplier is reportedly due to file papers in a Hong Kong court this week

Aquascutum is awaiting a lawsuit from its Portugese clothing supplier Calvelex over unpaid invoices.

Calvelex may sue the Chinese owner of Aquascutum and Gieves & Hawkes, Shandong Ruyi, as concerns over its debts grow.

The supplier is due to file papers in a Hong Kong court this week, claiming it is owed over €100,000 (£83,600) by Shandong Ruyi, according to The Times.

READ MORE: 30-plus Aquascutum HQ jobs slashed

In recent times, Shandong Ruyi acquired luxury fashion brands including Swiss shoe retailer Bally and French fashion group SMCP.

The acquisition was financed by debt, which had risen to 28 billion yuan (£3.1 billion) by the end of last year, according to the ratings agency S&P.

Last month, the price of bonds issued by Shandong Ruyi dropped. The company has reportedly hired advisers to draw up refinancing plans for a $345 million (£263 million) bond due this month.

Meanwhile, Aquascutum was rescued from administration in 2012 by Hong Kong-based textiles firm YGM Group, before being sold to Shandong Ruyi for $112 million (£86.6 million) in 2017.

In the year to March 2018, Aquascutum’s sales dropped by 36 per cent to £8 million and it made a pre-tax loss of £6 million.

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Fashion

Aquascutum Shandong Ruyi

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Fashion

2nd December 2019

Sahar Nazir

// Aquascutum may face lawsuit from clothing supplier Calvelex over unpaid invoices

// Calvelex may sue the Chinese owner of Aquascutum, claiming it is owed over £83,600

// The supplier is reportedly due to file papers in a Hong Kong court this week

Aquascutum is awaiting a lawsuit from its Portugese clothing supplier Calvelex over unpaid invoices.

Calvelex may sue the Chinese owner of Aquascutum and Gieves & Hawkes, Shandong Ruyi, as concerns over its debts grow.

The supplier is due to file papers in a Hong Kong court this week, claiming it is owed over €100,000 (£83,600) by Shandong Ruyi, according to The Times.

READ MORE: 30-plus Aquascutum HQ jobs slashed

In recent times, Shandong Ruyi acquired luxury fashion brands including Swiss shoe retailer Bally and French fashion group SMCP.

The acquisition was financed by debt, which had risen to 28 billion yuan (£3.1 billion) by the end of last year, according to the ratings agency S&P.

Last month, the price of bonds issued by Shandong Ruyi dropped. The company has reportedly hired advisers to draw up refinancing plans for a $345 million (£263 million) bond due this month.

Meanwhile, Aquascutum was rescued from administration in 2012 by Hong Kong-based textiles firm YGM Group, before being sold to Shandong Ruyi for $112 million (£86.6 million) in 2017.

In the year to March 2018, Aquascutum’s sales dropped by 36 per cent to £8 million and it made a pre-tax loss of £6 million.

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