Peter Woo taking Joyce private after luxury retailer's profit dives

Chic merchandise and celebrity customers may not always guarantee huge profit, and luxury fashion retailer Joyce Boutique Holdings, whose lacklustre earnings are said to be a possible reason for its privatisation plan, is a case in point.

Trading in shares of Joyce was suspended yesterday pending an announcement of a proposed privatisation, it said in a filing with the stock exchange.

If the privatisation proceeds, it could be the second such attempt by controlling shareholder Wheelock & Co's Peter Woo Kwong-ching after he took then loss-making Lane Crawford private eight years ago.

The stock exchange says Mr Woo controls 52 per cent of Joyce Boutique, with the Ma family holding 23 per cent.

Joyce's net profit for the year to March dropped 31.08 per cent to HK$51 million from HK$74 million a year earlier. Sales grew 4.6 per cent to HK$790.4 million. The company blamed rising rental costs and the strong euro for the profit dive.

The privatisation was disclosed a day after chief executive and founder Joyce Ma, her husband and chairman Walter Ma, and their daughter Adrienne Ma announced their exit from management.

All three will remain on board as non-executive directors. The retailer appointed Stephen Ng Tin-hoi as chairman.