FTI Consulting completes sale of Cerruti 1881 and Kent & Curwen

Guangzhou-based fashion company Biem.L.Fdlkk Garment has purchased the global trademark rights for two fashion brands: Cerruti 1881 and Kent & Curwen.

The sale sees the trademark rights for Cerruti 1881 exchange ownership for $62.1 million, while Kent & Curwen was picked up for $41.5 million. Both brands were previously owned by Hong Kong-based Trinity Group.

The buyer, Biem.L.Fdlkk Garment, is a publicly traded golf apparel retailer founded in 2003 with a strong retail presence in malls and airports in China.

The sale was facilitated by the Hong Kong practice of FTI Consulting, and comes months after the firm’s British wing sold Gieves & Hawkes – another brand that was part of Trinity Group’s portfolio.

Trinity Group was put into liquidation in January 2022 after its Chinese parent company Shandong Ruyi Group sought to shed some of its assets. The group operated a large retail network across China after acquiring a number of international fashion brands, including Cerruti 1881 and Kent Curwen, but later ran into serious financial problems.

FTI Consulting initially also served as joint liquidator along with R&H Services in an early attempt at restructuring Trinity Group. After options for turnaround ran out, FTI Consulting was appointed to lead the sale process of the three brands.

Kent & Curwen is a nearly 100-year-old British menswear brand, which previously collaborated with David Beckham before serious financial issues prompted the famed football player to part ways with the company in 2020. Cerruti 1881 is a luxury fashion brand with French and Italian roots that offers a wide range of contemporary menswear products.

“We are pleased to have concluded the sale to Biem.L.Fdlkk Garment, which not only secures the future of both brands, but increases competitiveness, preserves jobs and provides a platform for growth under new ownership,” said Vincent Fok, Asia Head of Corporate Finance & Restructuring at FTI Consulting.

The third brand sold off by the liquidated Trinity Group, Gieves & Hawkes, is one of the biggest names in men’s tailoring and menswear retail. The brand has meanwhile returned to British ownership after it was sold to Mike Ashley’s Frasers Group. Consulting for this deal, which closed in November 2022, was provided as a joint effort between FTI Consulting’s teams in the United Kingdom and Hong Kong.

A global advisory firm with over 7,600 employees and offices in 30+ countries, FTI Consulting also offers services related to corporate restructuring, economic consulting, litigation consulting, strategic communications, and other professional services.

The luxury fashion industry has grown tremendously in mainland China in recent years. An industry report found that China’s luxury goods market could grow to account for 25% of all global sales in the industry by 2025. As the second largest economy in the world continues to prosper, a growing number of wealthy Chinese consumers will fuel demand for luxury fashion products.