Cerrutis flagship boutique in Paris

Cerruti's flagship boutique in Paris

Chinese luxury men’s wear retailer Trinity Ltd is buying the Cerruti fashion house for up to EUR53m (US$69.7m) in a move that will enable it to expand into non-apparel product lines such as leather goods, perfumes and watches.

Trinity, which is a unit of the privately held Fung Group, already has the exclusive licence to make and sell the Cerruti 1881 brand in the Chinese Mainland, Hong Kong, Macau and Taiwan.

And it says the acquisition of 100% of Luxembourg-based Cerruti Holdings, which sells fragrances, formal and casual wear, watches and accessories under various Cerruti trademarks, eliminates any uncertainty around the renewal of the Cerruti licensing agreement which had been due to expire in 2013.

Cerruti operates in France, Switzerland and Japan through various licensing and distribution arrangements and has a flagship store in Paris. However, it has posted a loss for the past few years, including a loss after tax of EUR8.05m in the year to 31 December 2009.

Trinity says it intends to build the Cerruti brand and its global licensees, and plans to leverage its existing operating platform and store network to expand the Cerruti business in Asia.

As well as Cerruti 1881, it sells the Altea, D’urban, Gieves & Hawkes, Intermezzo and Kent & Curwen brands in China, and has a number of joint ventures with Salvatore Ferragamo in South Korea and various countries in South East Asia. It operates around 350 retail stores in Greater China.