China investor finds C&A’s organic cotton commitment appealing
Beijing-based private equity fund Zhongke Tongrong has agreed a deal with C&A to take ownership of the apparel retail group’s business in China.
In a statement, C&A said the deal would accelerate the growth of the brand in the Chinese market, “leveraging possibilities driven by urbanisation and mass market adoption of fashion trends”.
Executive director of Zhongke Tongrong, Duan Xuefeng, commented at the time of the announcement that there was interest in China in sustainable business practices and C&A’s status as one of the world’s largest users of organic cotton put it in a good position to grow its business there.
For his part, C&A chairman, Allan Leighton, said: “We have always seen China as a key growth market but we understood early on that local expertise with a strong network was critical to realising C&A’s full potential in this vast and complex market. This is truer than ever today, in the new covid-19 reality our retail industry is navigating through.”
