Latest News

Tycoon’s Wild $3 Billion Gamble on ‘China’s LVMH’ Crashes

S&P Futures




Dow Futures




Nasdaq Futures




Russell 2000 Futures




Crude Oil
















10-Yr Bond




















CMC Crypto 200




FTSE 100




Nikkei 225




(Bloomberg) — Six years ago, a little-known textile maker called Shandong Ruyi Group embarked on a frantic acquisition spree with the goal of becoming China’s version of luxury powerhouse LVMH.

Based in the hometown of Confucius, Chairman Qiu Yafu spent more than $3 billion snapping up assets from the boulevards of Paris to the heart of London tailoring on Savile Row. He bought French fashion brands Sandro and Maje, as well as heritage UK trenchcoat maker Aquascutum and the maker of Lycra stretchy fabrics. Those big dreams have since unraveled, and Ruyi is at the center of a messy unwinding involving some of the world’s largest financial institutions.

Ruyi is now losing control of key businesses and locked in disputes with creditors including Carlyle Group Inc. In June, lenders took over Wilmington, Delaware-based Lycra Co., the spandex producer Ruyi had bought from the billionaire Koch brothers. The next month, liquidators for another arm of Ruyi started inviting bids for Gieves & Hawkes, the bespoke tailor that’s dressed every British monarch since George III. Court decisions in the coming months could decide the fate of other assets.

The rise of Ruyi came amid a $400 billion outbound deal wave from China as the government sought to build up global champions. Authorities were encouraging traditional manufacturers to move up the value chain and help build a consumption-driven economy. Ruyi is now trying to offload assets in a difficult market, joining Chinese conglomerates like HNA Group Co. and Anbang Insurance Group Co. that have been reversing their global deal sprees.

“Most of the acquisitions made by Chinese companies overseas in recent years have not been successful,” said Jeffrey Wang, co-head of the Shanghai office at investment banking firm BDA Partners. “The lengthy unwinding of Chinese companies is continuing for so long because they cannot afford to sell those assets at a big loss now.”

Qiu, a 64-year-old former factory worker, has been holed up in a Hong Kong hotel room the past few months negotiating with creditors, according to people with knowledge of the matter. He’s trying to hold onto portions of his international empire, which also includes the Italian-inspired Cerruti 1881 label and British menswear retailer Kent & Curwen.

A Ruyi representative said that the companies it acquired were strategic investments and it worked hard to improve their performance, using local teams to manage the overseas operations.

“We weren’t out there making irrelevant acquisitions for the sake of winning trophy assets,” the Ruyi representative said. “It’s just very unfortunate that the Covid-19 pandemic, coupled with the Sino-US tension and tighter credit environment, had hit us badly.”

At first, Ruyi’s strategy seemed like a sure winner. Increasingly affluent Chinese shoppers were flocking to European luxury goods, so Ruyi would snap up foreign brands that had neglected the Chinese market—and bring them closer to where the demand was. After buying a majority stake in French fashion group SMCP SA from KKR & Co. in 2016, Ruyi helped it build up a network of more than 100 stores in the glittering malls of booming cities like Shanghai and Beijing.

It listed SMCP on the Paris bourse the next year, a success that gave Ruyi confidence to do more acquisitions. Qiu became fond of quoting a proverb about “sailing with the wind,” which some listeners understood as a reference to taking full advantage of the favorable dealmaking environment.

Ruyi tapped abundant financing from banks including JPMorgan Chase & Co. and Barclays Plc, making acquisitions that gave it thousands of new employees in North America and Europe and advanced facilities churning out products like Thermolite insulation. It even brought one of its favorite investment bankers in-house as it ramped up the hunt for targets.

In 2018, Qiu publicly declared his goal of turning Ruyi into China’s LVMH, and the company started being floated as a likely buyer whenever a Western consumer business went on the block. It suddenly seemed a long way from Ruyi’s humble past exporting wool fabric to developing countries.

Qiu regaled social media followers with business lessons from the ancient Chinese board game of Go, like the importance of pursuing balance and harmony over outright victory, and the way a keen rival can bring out your best performance. He dared other Chinese manufacturers to join him in casting off a reputation for low quality by strengthening their own brands.

One investor who visited the company’s headquarters during that period remembers being impressed by upmarket decor you’d expect more in a global capital than a smaller provincial city in eastern China. Executives waxed expansive about their international plans. But that ambition wasn’t enough to revive brands whose star had already started to fade.

Ruyi had trouble reenergizing Gieves & Hawkes, which was already struggling from rising costs and a stagnating market, according to Richard Hyman, a partner at retail-focused advisory firm Thought Provoking Consulting. And turning around labels like Aquascutum that peaked “many, many years ago” takes a good plan coupled with a lot of money and patience, he said.

“Brands under the Shandong Ruyi umbrella have faced pressure from multiple angles in recent years, not only from the company’s financial struggles, but also due to deflated demand for formalwear,” said Darcey Jupp, an analyst at London-based research firm GlobalData Plc. “Traditional formalwear brands that failed to react and casualize their ranges have inevitably fallen behind.”

For Ruyi, creditors soon came calling. Standard Chartered Plc filed a winding-up petition in December 2020 against Trinity Ltd., a Hong Kong-listed Ruyi unit that owns several brands including Gieves & Hawkes.

Then last year, a trustee seized a large stake in SMCP on behalf of creditors—which include Carlyle, New York-based BlackRock Inc. and Anchorage Capital Group—after the Chinese group defaulted on some exchangeable bonds. The trustee has since been facing off with Ruyi in court cases in England, Luxembourg, France and Singapore.

Among other things, it’s been seeking to open bankruptcy proceedings against the vehicle holding Ruyi’s stake in SMCP. It appealed after a first attempt was rejected by the Luxembourg Commercial Court and is expecting a decision by the end of this year, according to a person with knowledge of the matter.

For its part, Ruyi has argued in UK court filings that Carlyle worked to force it into a position where it could gain control of SMCP shares. In May, a judge refused a request from Ruyi seeking documents it wanted to pursue the claims against Carlyle.

Representatives for Anchorage, BlackRock, Carlyle, Ruyi, SMCP and the bond trustee, Glas SAS, declined to comment on the court cases.

A slew of Chinese groups pursued rapid overseas expansion during the same period as Ruyi, hoping to replicate past successes like Shuanghui International Holdings Ltd.’s purchase of American pork producer Smithfield Foods Inc. The pace of deals has since slowed to a trickle, and the promise of the massive Chinese consumer market wasn’t enough to save some of the takeovers sealed during those heady days.

Creditors seized control of British restaurant chain PizzaExpress Ltd. from Chinese buyout firm Hony Capital in 2020 and are shuttering dozens of locations. Meanwhile, Suning Holdings Group Co. is trying to bring in new investors for Italian football club Inter Milan as the Chinese appliance retailer seeks to shore up its finances.

Chinese suitors used to be welcomed in bidding processes as they would push up valuations, according to Alicia Garcia Herrero, chief Asia Pacific economist at Natixis SA. Some of those takeovers ended up being hindered by the Chinese buyers’ lack of overseas experience, and the volume of outbound deals from the country is set to fall in the medium term, she said.

“The Chinese acquirers have underestimated the difficulties in post-deal integration,” Garcia Herrero said. “The cultural clashes were beyond their expectations.”

Ruyi is now focused on deleveraging rather than expansion, the company representative said. International funds are stepping in to buy its prized assets.

Macquarie Group Ltd.’s asset management arm earlier this year acquired the Chinese group’s controlling stake in Cubbie Station, owner of the biggest cotton farm in Australia. Various buyout firms have also studied a takeover of SMCP since Ruyi’s troubles began, though some were turned off by its complex financing structure, a person with knowledge of the matter said.

“The Chinese firms wanted to grow too quickly, too soon,” said Naaguesh Appadu, a research fellow at City University of London’s Bayes Business School who studies cross-border dealmaking. “Some of them have started out quite leveraged and as they kept adding on more debt, it became unsustainable to carry on.”

More stories like this are available on

©2022 Bloomberg L.P.


Beyond Meat Stock Hits All-Time Low. Inflation Taking Bite Out of Plant-Based Industry.

Beyond Meat shares hit an all-time low Monday, falling for the fifth consecutive day and dragging down other plant-based stocks as inflation has led consumers’ to shun the higher-priced products. In fact, the stock has tumbled 74% this year and a whopping 93% from its all-time closing high of $234.90 in July 2019, according to Dow Jones Market Data. Other plant-based companies like Oatly Group (OTLY) and Calavo Growers fell 2% and 0.6% on Monday, and have dropped 63% and 18% this year.


Top Copper Stocks for Q4 2022

The copper industry is comprised of companies involved in the exploration, extraction, development, and production of copper, one of the most widely used metals. Copper demand is closely tied to economic cycles as it’s used for a broad range of applications, including construction, electronics, industrial machinery, transportation, power generation, and transmission.


Even State-Backed China Developers at Risk of Surging Default, Citi Says

(Bloomberg) — Financial contagion has spread so far across China’s property industry that even state-backed developers are at risk of surging defaults, according to Citigroup Inc. analysts. Most Read from BloombergGrand Theft Auto VI Leak Is a Shock to Video Game Studio RockstarTurkey Seeks to Be First NATO Member to Join China-Led SCOBezos Loses Spot as World’s Second-Richest Person to AdaniBusiness Class for $20,000 Means Staff Fly Coach or Not at AllBad debt climbed to about 29.1% of total p


Apple’s 5 Most Profitable Business Regions (AAPL)

Learn about how Apple generates its profits, breaking down its results by geographic region, with all showing year-over-year improvement.


Aviation regulator met Boeing about 737 MAX’s return to China

BEIJING (Reuters) -China’s aviation regulator said on Tuesday it held a meeting with Boeing last week about the return of the 737 MAX to China, a day before the planemaker’s top executives said they would begin remarketing some jets meant for Chinese customers. The jet has not flown commercially in China since March 2019, when it was grounded after two fatal crashes. CAAC said it would release a revised report when the questions raised at the meeting were resolved.


China EV Maker Leapmotor Seeks Up to $1 Billion in H.K. IPO

(Bloomberg) — Chinese electric-vehicle maker Zhejiang Leapmotor Technology Co. is looking to raise as much as HK$8.1 billion ($1 billion) in an initial public offering in Hong Kong.Most Read from BloombergSouthwest Mexico Struck by 7.5 Magnitude Earthquake, Buildings Sway in CapitalHome-Flipper Opendoor Hit With Losses in Echo of Zillow CollapseMark Zuckerberg’s $71 Billion Wealth Wipeout Puts Focus on Meta’s WoesFrustrated and Snubbed, Putin Is Running Out of OptionsGrand Theft Auto VI Leak Is


Morgan Stanley Quant Sees Capitulation Risk Rising for Equities

(Bloomberg) — The odds of capitulation in stock markets are rising, with macro hedge funds pricing in a more extreme scenario for a global selloff, according to Morgan Stanley’s quant strategists.Most Read from BloombergGrand Theft Auto VI Leak Is a Shock to Video Game Studio RockstarTurkey Seeks to Be First NATO Member to Join China-Led SCOBezos Loses Spot as World’s Second-Richest Person to AdaniBiden Says He Warned Xi of Investment Chill If China Backs PutinGlobal macro investors are expecti

The Root

The Real Black Billionaire Club: Crazy Rich Nigerians

News that Stephen Curry could be closing in on a $1 billion deal made a lot of Black people around the country smile. Oftentimes when people think about some of the richest Black people in the world though, we only think about people in the United States. But plenty of countries across the world have their own billionaires and millionaires, especially Nigeria.

Associated Press

By dancing, Rodrygo and Vinícius make stance against racism

With a goal and a dance, Real Madrid’s young Brazilian forwards made a statement against racism in soccer this weekend. With their samba-like moves after a goal in the derby against Atlético Madrid on Sunday, Rodrygo and Vinícius Júnior made it clear they are not backing down from the racist language from their critics or by the racist chants from the opposing fans. “Dance wherever you want,” Vinícius wrote on Twitter in a message directed at Rodrygo after Madrid’s 2-1 win at Atlético in the Spanish league.

Berkshire Looks Like a Loser With 3 Big Buys

Warren Buffett’s company bought shares of Citigroup, Paramount Global and HP in the first quarter. All appear to be trading below those prices now.


2022’s holiday delivery challenge: softening e-commerce demand

FedEx, United Parcel Service and other delivery firms that struggled with too much pandemic-fueled demand from online retailers like Amazon and Walmart, now have the opposite problem – too much delivery capacity. Online sales started fizzling during last year’s peak delivery season from Thanksgiving weekend through the end of the year. FedEx, UPS and the U.S. Postal Service (USPS) kept adding facilities and staff, even as more consumers returned to in-store shopping and higher food, fuel and rent costs eroded discretionary spending.


UK seeks to hire Taiwanese teachers amid plan to phase out controversial Confucius Institutes

The United Kingdom is now looking to hire Taiwanese teachers as part of proposed plans to phase out its Beijing-backed Chinese language schools known as Confucius Institutes. A group of cross-party Members of Parliament (MPs), including Conservative MP Alicia Kearns, is currently in talks to hire new teachers from Taiwan and replace Confucius Institutes in the U.K., according to The Observer. Confucius Institutes are Chinese language, culture and business etiquette schools.

Franklin Templeton Funds – 10 Best Templeton Mutual Funds

Top-Rated Franklin Templeton Funds as of 8/31/22 Fund Name, Ticker, Overall Rating, (Risk Grade) Franklin Utilities A A+ (C+) Franklin US Government Money A FMFXX B+ (A+) Franklin Rising Dividends …


After Plunging 12.9% in 4 Weeks, Here’s Why the Trend Might Reverse for Franklin Resources (BEN)

The heavy selling pressure might have exhausted for Franklin Resources (BEN) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.


U.S. refiners eye Canadian oil once strategic reserve turns off taps

U.S. refiners are expected to buy more Canadian oil after the Biden administration ends releases from the Strategic Petroleum Reserve (SPR) this fall, traders said, adding this should boost the price of Canadian barrels at a time of tight global supply. The releases have weighed on the price of Western Canada Select (WCS), the benchmark Canadian heavy grade. In 2021 the average WCS discount was $12.78 a barrel, according to the Alberta Energy Regulator.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News