Shenzhen Ellassay Fashion Co. Ltd. said Jan. 11 that it plans to buy an 80% stake in Shenzhen, China-based IRO Fashion Apparel for €1.2 million from France's IRO SAS.
The Chinese women's fashion retailer also plans to obtain the exclusive brand rights to the IRO label in mainland China.
After completion of the deal, Ellassay will be responsible for the brand's franchising, marketing and management on the mainland. IRO SAS will retain a 20% stake in IRO Fashion.
Shenzhen Ellassay said the latest transaction will allow it to directly control IRO. In March 2017, the company gained indirect control through a 79 million Chinese yuan deal that boosted its holding to 65% in affiliate Shenzhen Qianhai Shanglin Investment Management, which indirectly controlled IRO.
IRO, founded in 2005 in Paris, has products ranging from apparel and accessories to cosmetics and bedding.
Ellassay also controls the mainland China operations for other labels including Vivienne Tam, German womenswear brand Laurèl, and U.S. apparel and accessories brand Ed Hardy.
As of Jan. 10, US$1 was equivalent to 6.51 Chinese yuan.
