- Vivian Hendriksz |
Burberry has announced the acquisition of the remainder of its Chinese retail operations. The luxury fashion house shelled out 54 million pounds to take over the remaining 15 percent economic interest in its Chinese business, held by Sparkle Roll Holdings Limited, a non-Group company.
The British heritage house now currently holds 100 percent economic interest in its Group business in China, following it previous acquisition of its retail operations in China in 2010. At the time, Burberry purchased 43 stores in China and all related assets in July, for a total of 70 million pounds.
News of the acquisition comes not long after Burberry revealed plans to launch a complete overhaul of its retail operations following a full-year profit decline of 10 percent. The luxury fashion house has been struggling with a slowdown in sales due in part to the declining number of Chinese tourists visiting its stores in Europe as well as a weaker demand in Hong Kong and mainland China. Burberry recently named Marco Gobbetti, the Italian head of Celine at LVMH, as its new CEO, starting next year.