Ruyi yet to raise US $ 600 million funds for acquisition of Bally; Coronavirus effect

Shandong Ruyi, the Chinese apparel conglomerate, hasn’t secured its financing deal yet!

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Owing to the ongoing Coronavirus outbreak in China, Ruyi is unable to raise US $ 600 million funds for the acquisition of Swiss luxury brand Bally, as it had planned earlier. It has been more than 2 years now since the deal was announced.

The deal was finalised in February 2018 without disclosing financial details. Stakes in Bally had to be purchased from Luxembourg-based JAB Holding, with an aim to establish a global fashion empire.

Challenging LVMH, the Chinese apparel group has spent billions of dollars to buy a range of European luxury brands and Asian labels such as French fashion house SMCP and Britain’s Aquascutum.

Facing major challenges since last year, COVID-19 gives it a major blow as it has added on to its burden. The company failed to repay the debts and offshore bonds.