Tycoon's Wild $3 Billion Gamble on ‘China's LVMH’ Crashes
A Chinese LVMH wannabe spent billions buying up global luxury fashion brands, but its deal spree is now unraveling.
Suit jackets at a Shandong Ruyi Group factory in Jining, China.
Photographer: Qilai Shen/Bloomberg
Six years ago, a little-known textile maker called Shandong Ruyi Group embarked on a frantic acquisition spree with the goal of becoming China’s version of luxury powerhouse LVMH.
Based in the hometown of Confucius, Chairman Qiu Yafu spent more than $3 billion snapping up assets from the boulevards of Paris to the heart of London tailoring on Savile Row. He bought French fashion brands Sandro and Maje, as well as heritage UK trenchcoat maker Aquascutum and the maker of Lycra stretchy fabrics. Those big dreams have since unraveled, and Ruyi is at the center of a messy unwinding involving some of the world’s largest financial institutions.