Pierre Cardin to Sell Off Chinese Business, Plenty of Eager Buyers

Domestic Pierre Cardin agents are going to have the chance to become owners of some parts of the Pierre Cardin business in China.

"Of course, senior agents with long-term cooperation with Pierre Cardin will have priority," said the fashion firm’s Beijing Office. Potential buyers include Guangzhou Jiansheng Trading Company (Jiansheng) and Zhejiang Babei Clothing Company (Babei).

Pierre Cardin’s senior agents in China include 24 companies selling a variety of Pierre Cardin products, including clothing, clocks and watches, and towels, and many have joined in the bidding. Babei, based in Shengzhou, Zhejiang Province, China’s major tie maker, became Pierre Cardin’s agent ten years ago, with commission in ties and turbans only.

"I got a call from Pierre Cardin’s China office, asking if I was interested in acquiring the company," said Babei Chairman Jin Yao yesterday, "I heard in 2005 Pierre Cardin was going to sell its China company, and this year it finally comes true."

Pierre Cardin told media that it planned to sell the company’s clothing and accessories business to two Chinese companies for �00 million euros, mentioning Jiansheng and Cardanro. In the past two months, Pierre Cardin has been negotiating with Chinese companies for the sale of the commission of 32 products, and will soon sign contracts. A Pierre Cardin spokesman said the company owns the commission of over 800 products in 140 countries. The spokesman denied the report that the company was going to sell all of its brands.
 
Jiansheng is the dealer of Pierre Cardin’s shoes and cases, with its trademark licensing contract on Pierre Cardin shoes expiring on December 31, 2017.

Pierre Cardin refused to reveal which companies were going to acquire its business, saying it is highly confidential, but agents would enjoy priority.

Jin Yao was among the first agents to get the information from Pierre Cardin company. "As a agent with long-term cooperation with Pierre Cardin, I have quite deep understanding of the brand. It will be appealing to us if we are able to acquire some of the company’s business." The acquisition, if it succeeds, would be a shortcut for Jin Yao and the whole Shengzhou tie industry to enter the international market. "This helps to save our time, which is very important," said Zhou Qingyu, vice secretary-general of Shengzhou Tie Association.

Jin Yao has sent a company official to France to negotiate acquisition details with Pierre Cardin. Many rumors are afloat. Some say the price for the leather product and shoe business totals â‚?00 million euros. But the price for clothing business is still not known, nor is it clear whether Pierre Cardin wants to sell the whole company or just some of its business. But for many Chinese potential buyers anyway, buying the whole company, including its business in Europe, is not a realistic option, due to both lack of cash and inability to deal with the European end of the business.

Earlier, Pierre Cardin himself told media, "The asking price is � billion ($1.3 billion). If buyers can’t afford it, it’s their problem, not mine. I’m not short of money."

One industry insider said, "The deal will face difficulties anyway. We still don’t know if Pierre Cardin is going to sell the whole company or a part of its business. If it is going to sell some of its business, the problem will be even bigger, for the Pierre Cardin brand will be hurt if some of its sub-brands are not properly handled after they’re sold."

Although Pierre Cardin officials in Beijing refused to reveal potential buyers, it is reported that some other Zhejiang-based companies are teaming up to bid for Pierre Cardin business.