Zhejiang Baoxiniao Fashion Group recently released the announcement of signing brand cooperation contract with LG Fashion Group and Shanghai Rongyuan Fashion Co., Ltd.
Baoxiniao obtained the license to use LG Fashion Group’s HAZZYS brand name in Chinese territory, valid for 10 years. During the first five years, if the number of outlets and sales amount could reach the tripartite agreed standards, then to renew for another five years.
According to the announcement Baoxiniao holds a 51 percent stake of Shanghai Rong Yuan Fashion Co., Ltd. Rong Yuan fashion’s main business is agents operating in young and trendy international clothing brands. Now the company intends to acquire the rest of the 49% stake from the other shareholders, then after the completion of the acquisition, the company will hold 100% stake of Rong Yuan Fashion. Rong Yuan fashion change from share controlled branch company to a wholly owned subsidiaries, the holding position is not change, so does not affect the performance of the contract.