Extensive store network attracts Esprit, Zara and Uniqlo
Three global clothing retail giants are separately considering buying a substantial stake in Hong Kong-listed Giordano International, according to sources.
Esprit Holdings and Spanish retailer Zara are the latest comers in the quest for a stake in one of Asia's largest clothing chains, joining yet another bid by Tokyo-listed Uniqlo operator Fast Retailing, the sources said.
The three retailers have only limited presence across the region and see some form of link-up with Giordano - which has 1,793 shops across Asia - as a way of rapidly boosting their exposure, especially on the mainland.
Giordano issued an announcement to the stock exchange stating that it had 'no negotiations or agreements relating to intended acquisitions or realisations which are discloseable' under listing rules, after its shares rose 2.5 per cent yesterday to close at HK$3.69 on the heels of a 7.14 per cent surge on Thursday.
Some analysts had attributed the jump to the retailer on Tuesday releasing better than expected first-quarter sales figures, showing revenue rose 15.3 per cent over last year and same-store sales jumped 22 per cent on the mainland and 8.9 per cent in Hong Kong.
Esprit spokesman Patrick Lau yesterday shrugged off questions about whether the two retailers were in talks, saying only 'the company had not posted any announcement'.
