HONG KONG, May 29, 2015 /PRNewswire/ -- Shanghai La Chapelle Fashion Co., Ltd. ("La Chapelle" or the "Company", together with its subsidiaries, the "Group", stock code: 6116.HK), a fast-growing multi-brand fashion group in the PRC, today announced that the Group has entered into an investment agreement with a quality casual menswear brand - Jack Walk (Shanghai) Fashion Limited ("Jack Walk"), pursuant to which the Group will invest a total consideration of RMB75,000,000 in Jack Walk. Upon completion of the transaction, La Chapelle will directly hold 69.12% of the equity interest of Jack Walk.
The investment complies with La Chapelle's product-oriented strategy as well as its core values of "cost-effectiveness, fashion, quality", which will help strengthen the Group's leading position in mass-market casualwear segment. Since the introduction of its male apparel products in 2011, La Chapelle has been actively cultivating its menswear brands and constantly seeking for opportunities to develop new brand in order to increase its market share in menswear market. The core management team of Jack Walk had worked in various well-known international fast-fashion companies including Uniqlo and possesses ample hands-on experience in the industry. The brand of Jack Walk is characterized by "low-profile fashion, excellence and cost-effectiveness, quick response", with industry-leading average sales per unit area in its directly-controlled stores. The investment in Jack Walk will further enrich the product mix of the Group and accelerate the implementation of its multi-brand strategy. Leveraging on La Chapelle's extensive distribution channel and competitive supply chain capability, the investment is expected to enhance Jack Walk's rapid expansion and margin improvement.
Mr. Wang Yong, Executive Vice President of La Chapelle, said, "With the growing male population in China, the change in the apparel consumption preferences for male consumers and a significant increase in purchasing power, China's casual menswear and business casual menswear market has been growing rapidly, and is expected to continue its stable growth. The core members of Jack Walk have years of operational experience in international fast-fashion companies. They are the experts in operating 'short, cost-effective, fast' business, which is suitable for current fast-fashion market. On the other hand, their extensive experience in product development and brand management enables them to closely follow market trends and develop products that are in line with the needs of mass consumers. As one of the important steps in La Chapelle's multi-brand strategy, investing in quality menswear brand Jack Walk will definitely boost the business growth of the Group."
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About Shanghai La Chapelle Fashion Co. Ltd.
Founded in 2001, Shanghai La Chapelle Fashion Co. Ltd. is a fast-growing multi-brand fashion group in the PRC, which designs, markets and sells apparel products with a focus on mass-market ladies' casualwear. The Group strives to offer customers the latest fashions at competitive prices through a wide range of apparel products under 8 brands (5 ladieswear brands, 2 menswear brands, 1 childrenswear brand), namely La Chapelle, La Chapelle Sport, 7.Modifier, Candie's, La Babite, La Chapelle Homme, Pote and La Chapelle Kids. The Group sells its products to retail customer through online platform and nationwide retail network, which is directly controlled and operated by the Group. As at 31 December 2014, the Group's extensive nationwide retail network comprised 6,887 retail points located in approximately 2,200 physical locations, comprising mainly department stores and shopping malls, in cities across all 31 provinces, autonomous regions and municipalities in the PRC.
Website: www.lachapelle.cn
About Jack Walk (Shanghai) Fashion Limited
Founded in 2009, Jack Walk (Shanghai) Fashion Limited is a fast-growing international casual menswear brand in China. It is principally engaged in the design, marketing and sales of male apparel products under a number of product lines, including casualwear, sport, denim and business. Its comfortable texture, unique and innovative styles have been well received by customers. The core members of Jack Walk's management team possess extensive working experience in international fast-fashion companies and are experts in operating "short, cost-effective, fast" business. Its directly-controlled stores also have leading sales per unit area in the industry.
