Fosun acquires 100% of Tom Tailor GmbH, aiming to rejuvenate
- Fosun acquires Tom Tailor GmbH as a strategic investor with a long-term focus and experience in the industry, taking over 100% of shares in Tom Tailor GmbH
- Tom Tailor GmbH and its 3,400 employees can now build on the successful performance seen prior to the COVID-19 outbreak
- Based on the milestones it has already accomplished, Tom Tailor GmbH is working with Fosun to implement its development plan by taking specific measures in terms of strategy and operation
HAMBURG, Germany, Sept. 23, 2020 /PRNewswire/ -- Fosun International Limited (Stock Code: 00656.HK) today announces to acquire 100 percent of the shares in Tom Tailor GmbH, together with its subsidiary companies. This enables the fashion brand, with around 3,400 employees, to achieve long-term business development and sustainable growth through Fosun's strategic empowerment and ecosystem.
Fosun has always believed in the brand value of Tom Tailor since the beginning and has purchased the minority of brand shares of its listing company TOM TAILOR Holding SE (TOM TAILOR Group) as early as 2014. After years of investment and funding, Fosun finally acquired its controlling stake in 2019.
"Since first becoming a shareholder in 2014, Fosun has been deeply committed to Tom Tailor – and has always believed in the brand and continued to invest in it, even in particularly challenging times for the entire Tom Tailor Group," said Gernot Lenz, CEO of Tom Tailor GmbH. "The knowledge and experience we have gained together over the years make Fosun the ideal partner to take Tom Tailor GmbH to the next level once again, both during and after the coronavirus outbreak."
From now on,Tom Tailor GmbH is hoping for a stronger come back in the fashion market, being able to stay ahead in the competition with Fosun's steady empowerment. Fosun Fashion Group (FFG), as an important industry sector within the Fosun ecosystem, is continually providing support through investments and aligning with management to ensure that capital and strategy are in place. Thanks to the continuous financial support from Fosun, as well as new strategic measures with a clear focus, Tom Tailor GmbH is confident about its future in the industry, at the same time capable of contributing to the fashion ecosystem of Fosun.
"Fosun is committed to making long-term strategic investments in companies that offer high-quality products and services to families around the world," explained Xu Xiaoliang, Co-CEO of Fosun International. "As one of the largest fast fashion brands in Germany, Tom Tailor GmbH has developed a firm market base and an extremely high level of brand recognition among consumers, as well as a fully developed supply chain and logistics system in German-speaking countries. We remain confident about this. We would like Tom Tailor GmbH to become an even more resilient and more fruitful partner for us."
Tom Tailor GmbH aims to overcome its current and future challenges and will be able to build on the growth recorded in 2019. With financing secured for all areas of the Tom Tailor GmbH business until September 2024, the company can implement the numerous operational and strategic measures as planned. These measures will primarily address the following five aspects:
- Improve products: Tom Tailor GmbH will invest in effectively improving the quality and appeal of its products.
- Increase customer loyalty: Tom Tailor GmbH will introduce a variety of individual initiatives to significantly improve and maintain the loyalty of its customers in the long term.
- Continue with targeted internationalisation: Tom Tailor GmbH aims to continue its successful growth trajectory in several countries outside of its existing core markets, particularly in South-Eastern Europe.
- Strengthen online business: Tom Tailor GmbH will selectively expand its digital sales channels and online presence for a significant growth online revenue.
- Improve efficiency: Tom Tailor GmbH will cope with the effects of the COVID-19 pandemic by implementing a bold programme to streamline processes along the company's entire value chain.
Despite all the challenges, Tom Tailor GmbH's clear ownership structure and financing arrangements make it one of the few players in the fashion industry, resting on a very concrete foundation for further development. This stability does not only ensure a solid ground for upcoming improvements. It is also going to provide all of the company's stakeholders – particularly its trading partners, suppliers, financing partners and, of course, its employees – with the reliability required to successfully develop the business going forward.
Fosun was founded in 1992. Fosun's mission is to provide high-quality products and services for families around the world in health, happiness and wealth businesses. Fosun International Limited is an innovation-driven consumer group that has been listed on the main board of the Hong Kong Stock Exchange (00656.HK) since 2007, with total revenue of RMB143.0 billion (c.US$20.7 billion) in 2019 and total assets of RMB745.0 billion (c.US$105.2 billion) as of 30 June 2020. Fosun International ranks No.371 on the 2020 Forbes Global 2000 List.
About Fosun Fashion Group
Fosun Fashion Group (FFG) is an important component of the happy sector of Fosun, targeting apparel, jewelry, footwear, leather goods companies, as well as other critical parts of the value chain. FFG operates a model that combines strategic investment and industrial operation to identify and empower the best assets, with Fosun's experience, capabilities, and expertise in China and cross-border investing. FFG has proven capabilities to successfully complete world-class, cross-border investments, among which Lanvin, St. John Knits, Caruso and Tom Tailor have become our core assets for ongoing value creation. FFG's goal is to meet the demand of families around the world and leverage our resources to help them in their pursuit of happiness.
About Tom Tailor GmbH
Tom Tailor GmbH is an internationally active, vertically oriented fashion company that focuses on so-called casual wear and offers it in the medium price segment. An extensive range of fashion accessories expands the product portfolio. The company thus covers the various core segments of the fashion market. The TOM TAILOR brand is sold through the retail and wholesale segments, i.e. both through the company's own mono-label stores and through retail partners. As at 30 June 2020, these include 454 TOM TAILOR stores, 175 franchise stores, 2,581 shop-in-shops and 7,432 multi-label outlets. In addition, the collections are sold via the company's own online shop and via major e-commerce platforms. The TOM TAILOR brand is thus present in over 30 countries.