Fashion

Bagir sees strong start to 2019, extends deadline of Shandong Ruyi deal


Confirming 16.5 million dollars investment from Shandong Ruyi to acquire
53.7 percent stake, tailoring specialist Bagir has said that the company
has agreed to a further extension of completion date to March 31, 2020.
Commenting on the current trading, Bagir said, while trading conditions
have remained challenging, the company has had a strong start to 2019 with
sales in the five months to May 31, 2019 reaching 27 million pounds (34.2
million dollars) compared to 21.8 million pounds in the previous year.

Commenting on the development, Bagir CEO Eran Itzhak, said in a
statement: “Following face to face conversations we have been convinced of
Ruyi’s intentions which together with the valuable operational support
being provided a further and final extension was agreed. The business is
performing reasonably well in a tough market and while we have a good
pipeline of new and backlog orders to focus the operating team on, there is
no doubt this is a challenging period for major retailers and
manufacturers.”

Bagir confirms investment from Shandong Ruyi

Bagir had earlier announced that Shandong Ruyi is committed to provide
suit jacket manufacturing equipment, with an estimated market value of
approximately 1.3 million dollars, for exclusive and indefinite use in
Bagir’s Ethiopian manufacturing facility, free of landed costs, for nil
consideration. Now, Shandong Ruyi has agreed to deliver this manufacturing
equipment to the Bagir’s Ethiopian manufacturing site by the end of
September 2019.

The company further said that extension of the unconditional completion
date to March 31, 2020 is conditional on Ruyi providing to Bagir all
fabrics and the manufacturing equipment by the end of September 2019. Over
the last 18 months the Company has received 3.3 million dollars of
non-refundable payments from Shandong Ruyi.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.