Debt-ridden Chinese fashion tycoon Qiu Yafu, who once dreamed of developing a version of Louis Vuitton’s brand in China, is expected to lose his properties in Hong Kong.
According to the South China Morning Post, Qiu Yafu—Chairman of Shandong Ruyi Technology Group, and other directors own the 23rd floor of the Bank of America Tower in Central and three parking spaces in Hong Kong.
However, international property agent Savills revealed on Wednesday, November 23, that a receiver had appointed it to sell the properties.
A receiver is a person or company appointed by a court to deal with the business matters of companies that cannot pay their debts.
The entire 23rd floor of Bank of America Tower has an area of 13,880 square feet.
The South China Morning Post, citing sources, said Qiu Yafu purchased the property in 2018.
The receiver wants to sell the portfolio for $64 million (HK500 million). It means Qiu Yafu is set to lose the prime office property.
Qiu Yafu is a fashion tycoon who once hoped to build his company into an empire billed as China’s version of French fashion giant LVMH.
His Shandong Ruyi Technology Group established a global textile and apparel empire through aggressive acquisitions.
From 2015, Qiu made $4 billion worth of overseas acquisitions in three years via his group.
Accordingly, Qiu acquired the UK outerwear maker Aquascutum and French fashion retailer SMCP, Australia’s largest cotton farm Cubbie Station, and Japan’s century-old Renown.
His group also bought Trinity, which controls British bespoke tailor Gieves & Hawkes, in 2017.
The deals were financed mainly by heavy borrowings.
However, Qiu’s dream has not come true.
According to SCMP, since 2019, Shandong Ruyi Technology Group has struggled to pay back its creditors from its global shopping spree.
Then the COVID pandemic made things worse. As a result, between March and June 2020, Qiu’s group delayed its repayment on a $140 million onshore bond twice.
Moody’s rating agency withdrew its ratings for Shandong Ruyi Technology Group in May due to insufficient information after downgrading the group’s debt into the junk zone in March 2020.