Ted Baker has entered a new joint venture to expand the brand in mainland China, Hong Kong and Macau.
Under the joint venture agreement, Shanghai LongShang Trading Company will operate Ted Baker’s retail, concessions and online channels in the regions.
Ted Baker said the deal would give a small boost to group profit before tax in its current financial year.
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Shanghai LongShang will assign its rights to a newly incorporated Hong Kong investment vehicle formed by LongGoal Holdings and Infra-Apparel Group. Ted Baker’s net cash contribution is anticipated to be around £3.4m.
Ted Baker currently has eight stores in China, Hong Kong and Macau.
Acting CEO Lindsay Page said: “Over recent years we have invested in introducing the Ted Baker brand to Chinese customers, and we are confident that the creation of this joint venture will build on this platform, and deliver meaningful long-term growth.
“We firmly believe that China has the long-term potential to become one of the largest single global territories for the Ted Baker brand.”