British luxury brand Aquascutum to be sold for $120 million

aquascutum
ONDON, ENGLAND - DECEMBER 18, 2016: People walking in the Oxford Street during Christmas time

British trench coat brand Aquascutum have been put on the market by its Chinese owners, with two potential buyers already making down-payments worth £4 million.

Aquascutum will be sold for $120 million by Hong Kong-based YGM Trading, who bought it back in 2011 for just $15 million..

Reports suggests both buyers in the running to acquire the clothing retailer are Chinese, with Bloomberg reporting that one was textile firm Shandong Ruyi Group.

The deal is set to be complete by the end of March next year, according to YGM’s annual report.

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Iconic brand Aquascutum started in London in the 1850s, and has a history of success. The brand supplied trench coats to soldiers during the first and second World Wars, as well as being a favourite of stars and politicians including Cary Grant and Margaret Thatcher.

In the past Aquascutum has seen strong demand from the Chinese market, seeing its UK sales fall 16 percent last year. However last year demand in the region dropped off, with the brand closing 14 stores and refocusing its strategy on Europe.

Aquascutum only has three standalone stores in the UK, all of which are in London: Westfield London, Great Marlborough Street and Jermyn Street.

The sale was announced in YGM Trading’s half-yearly report. YGM (HKG:0375) shares are currently up 0.95 percent on the Hong Kong market, at 7.42 (1524GMT).