GIDE & VEIL ON JV
30 Nov, 2011
Gide Loyrette Nouel and Veil Jourde advise Pierre Balmain on the establishment of two fashion joint ventures with Hong Kong listed company, Stella International Holdings Ltd.
Gide Loyrette Nouel (GLN) and Veil Jourde have advised French luxury group Balmain S.A. and Balmain Asia Limited (Balmain) on the establishment of two joint ventures with Stella International Holdings Limited (Stella) for the distribution and sale of “Pierre Balmain” brand footwear and other products in Hong Kong, PRC and other countries.
Balmain, a prestigious and renowned luxury fashion group offering a range of designer ready-to-wear clothing, footwear and accessories, and Stella International Holdings Ltd., a Hong Kong listed company which specialises in the development and manufacture of designer footwear, have agreed to jointly incorporate and invest in two joint ventures in Hong Kong.
The joint venture arrangements with Stella form part of Balmain’s plans to expand its presence in Asia at a time when the luxury retail sector in Asia – and especially in China – is expected to experience significant growth. The joint venture arrangements also illustrate the increasing number of luxury groups shifting the manufacturing and distribution of their products from their original markets towards Asia and, in particular, Hong Kong and PRC.
The Gide Loyrette Nouel team in Hong Kong, led by partner Rebecca Silli (pictured) and senior associate Gilles Cardonnel, advised Balmain on the negotiation, structuring and drafting of transaction documents governed by Hong Kong law relating to the luxury joint venture, in close cooperation with a Veil Jourde team in Paris led by François de Navailles (partner) and Céline André (senior associate), usual French legal adviser to Balmain.
“We were delighted to assist Balmain with this important strategic venture into Asia, and China and Hong Kong in particular. It reflects a growing trend on the part of luxury fashion and lifestyle groups to ensure that they are placing a firm foothold into retail markets in Asia,” said Rebecca Silli, Partner and Head of Gide Loyrette Nouel Hong Kong.