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Dickson Concepts

Dickson renews connected agreements

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Sandy Li

Luxury retailer Dickson Concepts (International) has renewed as many as 12 agreements with companies either controlled or wholly owned by its chairman, who will receive up to $328 million over the next three years when the agreements mature.

The announcement came after chairman Dickson Poon reportedly needed to invest as much as Euro50 million ($477.98 million) to rescue his Paris-listed ST Dupont from bankruptcy.

Business dealings between Mr Poon's private company and its listed arms have previously raised concerns over transparency.

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In 2000, Dickson Concepts sparked controversy over its failure to disclose a deal to buy hardware and software from Mr Poon's Dickson Management Consultancy at a fixed rate of $130 million.

'There are too many connected transactions in the company. To a certain extent, it will hurt the corporate image,' an analyst said.

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According to the announcement, most of the 12 renewal agreements relate to merchandise purchase and the payment of sub-licence fees and promotional and advertising fees to Mr Poon's connected companies.

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