Bosideng to consolidate market share in the UK

A Bosideng outlet in the city of Yichang city, Central China's Hubei province on March 19,2013.[Zhou Jianping / Asianewsphoto]

Clothing firm Bosideng International Holdings Ltd will spend 40 million yuan ($6.54 million) in acquiring two men's clothing brands to consolidate its market share in the UK, sources said.

In a public announcement on Friday, Bosideng said it has signed an agreement with Fast Speed Investments Ltd, according to which Fast Speed has agreed to sell all the stakes of its affiliated company for 40 million yuan.

The company's only investment is 96 percent of a man's clothing company, Greewoods Menswear Ltd. Currently, Greenwoods owns 88 franchises across the UK.

The acquisition is expected to further strengthen Bosideng's market share in the UK. In May 2012, Bosideng opened a six-story flagship store near Oxford Street in London's West End with an investment of 300 million yuan.

But the flagship store failed to make ends meet after one year's operation, the National Business Daily reported.