] E-Land Group, South Korea’s retail and fashion company, has sold its clothing brand Teenie Weenie to China’s V-Grass Fashion for around 1 trillion won (US$895.42 million), the Korean firm said on Sept. 2.
V-Grass Fashion, China-based high-end women’s fashion brand, signed the deal to acquire the trademark rights, design and business operations of Teenie Weenie in a bid to “diversify its business portfolio.”
The young and casual clothing with a teddy bear theme has gained increasing popularity among Chinese customers in recent years.
The disposal of Teenie Weenie would give the cash-strapped E-Land Group room to breathe. The 1 trillion won worth liquidity is projected to lower the group’s debt-to-equity ratio to 200 percent from 295 percent.
Teenie Weenie posted sales of 446.2 billion won in China last year, while net profit reached 90.3 billion won.
Established in 2003, Nanjin-based V-Grass Fashion runs some 400 stores across China, Macau and Hong Kong.
By Park Han-na (email@example.com