Fashion retailer Shanghai Tang sold to Italian entrepreneur

Hong Kong fashion brand Shanghai Tang has been sold to an Italian entrepreneur in cooperation with a Hong Kong private equity firm.

Italian fashion entrepreneur, Alessandro Bastagli and Hong Kong-based consumer-focused private equity fund Cassia Investments acquired the company from its owners the Richemont Group on June 30, according to announcements made by both parties on Monday.

Shanghai Tang was founded by Hong Kong businessman David Tang in 1994. It rose to fame after its signature form-fitting qipaos were worn by Maggie Cheung in Wong Kar-Wai’s classis movie In the Mood for Love.

Swiss luxury group Richemont took a controlling stake in 1998, and acquired full ownership in 2008.

The brand’s new owners said in a statement that they were hoping to expand into new markets in Asia, Europe, Middle East and North America.

Shanghai Tang has 32 boutiques, primarily in Asia, but also has a presence in London and Miami.

Bastagli is owner of Italian fashion producer A Moda and textile maker Lineapiù, which he has led since 2010, according to the firm’s website.

The Richemont group saw its operating profit fall by 14 per cent for the 12 months to March 31 this year. In its annual statement the group said that it had seen sales declines in Hong Kong.

“The disposal of Shanghai Tang is a logical step,” Rene Weber, an analyst at Vontobel, said in a note according to Bloomberg. “The brand was neither material in terms of sales nor of profit.”

Neither Richemont nor Cassia Investments disclosed how much the deal was worth.