Chinese cos snap up chunk of French fashion industry

French ready-towear fashion labels Sandro, Maje and Claudie Pierlot will be taken over by China’s Shandong Ruyi Technology Group under the terms of an exclusivity agreement announced late Thursday.

Hot on the heels of the announcement, French lacemaker Desseilles said Friday it is to be acquired by Chinese firm Yongsheng, in another sign of the growing Chinese presence in France’s fashion industry.

In the deal for Sandro and Maje’s parent company SMCP, the founder of the “accessible luxury” labels, sisters Evelyne Chetrite and Judith Milgrom, will remain minority shareholders if the deal goes through, as will their management team and the US investment fund KKR.

KKR acquired a 65-percent share of SMCP in 2013.

Shandong Ruyi gave no financial details, but the Financial Times reported this week that the deal valued the group at 1.3 billion euros ($1.5 billion), including debts.

The Chinese group will invest in SMCP “with the ambition to drive further growth and support the company’s global development, including in Asia”, the statement said.