Dalian Wanda has appointed Hill+Knowlton Strategies to oversee its worldwide public relations. It is the first time that the property to entertainment giant has hired an agency of record to cover all its global communications. The appointment was made in April, and took effect from late May this year, it is understood. That is more than a month before Wanda became engulfed in a tangle over its finances and overseas acquisition strategy In the past month Wanda’s image has been dented by a series of setbacks to its previously expansionist strategy. These reversals, which include a reported halt of bank lending to six of Wanda’s operations, appear to have been sparked by initiatives at high levels within the Chinese government to rein in a handful of high-profile and acquisitive conglomerates. “Wanda Group has appointed H+K to manage its global public relations and communications strategy, covering overall brand building as well as specific in-market projects,” the agency said. A statement from Hill+Knowlton’s top executive issued on Tuesday avoided discussion of Wanda’s recent moves to pare group debt through asset disposals. An online version of that announcement was posted on the corporate website of Hill+Knowlton. However, it was removed just hours later. In mid-July, Wanda announced that it was to sell off a large portion of its tourism assets in China and a portfolio of 77 hotels for some $9 billion. Wanda chairman, Wang Jianlin said that the disposals will sharply reduce group borrowings. He has also pointed to a redirected corporate strategy that will increasingly focus on developments within China. “We are looking forward to partnering with Wanda Group as it leverages its incredible reputation and agility to aggressively reposition itself as one of the fastest growing international entertainment businesses. Jack Martin, Hill+Knowlton global chairman and CEO. Ad industry publication, Campaign noted that Hill+Knowlton had previously worked for Wanda on content creation and management its Facebook site. Facebook is not available within China. As Wanda has expanded from a base in commercial property development in China into a conglomerate with a growing focus on tourism, leisure and entertainment, it had been seen as one of the Chinese firms with the strongest political connections. Its overseas expansions, which include the acquisition of Legendary Entertainment and the AMC, Odeon-UCI, and Hoyts cinema chains, were widely assumed to have the blessing of authorities in Beijing. In late 2016, Chinese authorities introduced capital controls partly intended to stem net outflows of capital at a time when the Chinese currency was weak against the U.S. dollar. In recent weeks, banking restrictions have been imposed on Wanda, apparently for breaching those capital restrictions.
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The investment from Singapore-based Temasek, for an undisclosed sum, will support the Stone Island brand's global expansion. Singapore's sovereign wealth fund Temasek is to acquire a 30 percent stake in Stone Island for an undisclosed sum. It is the latest fashion investment for the company, which last year contributed to Farfetch's $110 million Series F funding round, and has also invested in Moncler and Dufry. It is understood that the investment will help the Italian men's sportswear brand expand its reach globally. Stone Island's parent firm, Sportswear Company S.p.A., shared news of the agreement in an announcement on Monday. “I am truly satisfied for this partnership with one of the world’s most established investment companies," said Carlo Rivetti, Sportswear Company's founder and majority shareholder. "I particularly appreciate Temasek’s investment strategy to participate in companies with strong growth potential, know-how and identity." Rivetti, who is both president and creative director of Stone Island, also highlighted Temasek's agreement to guarantee the continuity and the autonomy of the Stone Island management team, which he says "has proven to successfully face and overcome our sector’s challenges." "With this operation I wanted to both capitalise on the work done in 35 years and to team with a partner to face the increasingly complex opportunities proposed by the markets," Rivetti said. "I am confident that the brand Stone Island will keep on with increased success its development, being able to count on a competent and attentive partner to the specifics of our business and with strong international relations.” Stone Island was founded in 1974 by Massimo Osti whose now famous jackets were the result of an experiment with the same coated canvas used for military tarps. The company was acquired in 1983 by GFT, Rivetti's family firm, which was one of the largest apparel manufacturers in Italy and later became Sportswear Company. In 2015, Stone Island generated €87 million ($97 million) in global sales revenue, a 10 percent increase on 2014. Revenues for 2016 were reported to be at €109 million, 26 percent up on the previous year. Stone Island is one of the first brands to blur the boundaries between technical wear, streetwear and high-fashion. Its collaborations with Supreme and Nike, as well as stockists like Kith, have helped cement its place at the heart of the streetwear sector. The acquisition of the BCBGMAXAZRIA, BCBGeneration and Herve Leger brands — for an undisclosed sum — comes after the group filed for bankruptcy in March. Marquee Brands has acquired the entire portfolio of brands from BCBG Max Azria Global Holdings for $108 million, BoF can exclusively reveal. The acquisition of brands including BCBGMAXAZRIA, BCBGeneration and Herve Leger comes after BCBG filed for bankruptcy in March, closing 120 stores in a major restructuring, and confirms a report at the beginning of June. Marquee's existing fashion portfolio includes Bruno Magli, Ben Sherman, and Body Glove. “Acquiring these three brands is transformational for Marquee as we step firmly into women’s fashion and further diversify our portfolio,” says Zachary Sigel, managing director of Neuberger Berman, the equity company that sponsors Marquee Brands' acquisitions. Global Brand Group will operate BCBG stores and global supply through a licensing partnership, according to a press release, expanding the BCBG brands' retail network of monobrand boutiques, shop-in-shops, department stores and e-commerce. “BCBGMAXAZRIA and BCBGeneration each speak to a very specific woman who has come to rely on these brands to help express her unique style and personality," adds Cory M. Baker, chief operating officer of Marquee Brands. "Few women’s contemporary brands carry this much affinity among consumers and retailers alike.” Max Azria, who founded BCBG Max Azria in 1989, and his wife Lubov Azria, who was its creative director until March of this year, together own 20 percent of of the company. They are in continuing negotiations regarding lease payments on property that they own and Mrs Azria’s severance package. Last week, the couple launched an objection to the BCBG bankruptcy plan. The couple, who sold a majority stake in their company to Guggenheim Partners for $135 million in 2015, claim the plan requires broad releases of personal financial claims totalling over $360,000. |
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