Bagir sees strong start to 2019, extends deadline of Shandong Ruyi deal

Confirming 16.5 million dollars investment from Shandong Ruyi to acquire 53.7 percent stake, tailoring specialist Bagir has said that the company has agreed to a further extension of completion date to March 31, 2020. Commenting on the current trading, Bagir said, while trading conditions have remained challenging, the company has had a strong start to 2019 with sales in the five months to May 31, 2019 reaching 27 million pounds (34.2 million dollars) compared to 21.8 million pounds in the previous year.

Commenting on the development, Bagir CEO Eran Itzhak, said in a statement: "Following face to face conversations we have been convinced of Ruyi's intentions which together with the valuable operational support being provided a further and final extension was agreed. The business is performing reasonably well in a tough market and while we have a good pipeline of new and backlog orders to focus the operating team on, there is no doubt this is a challenging period for major retailers and manufacturers.”

Bagir confirms investment from Shandong Ruyi

Bagir had earlier announced that Shandong Ruyi is committed to provide suit jacket manufacturing equipment, with an estimated market value of approximately 1.3 million dollars, for exclusive and indefinite use in Bagir’s Ethiopian manufacturing facility, free of landed costs, for nil consideration. Now, Shandong Ruyi has agreed to deliver this manufacturing equipment to the Bagir's Ethiopian manufacturing site by the end of September 2019.

The company further said that extension of the unconditional completion date to March 31, 2020 is conditional on Ruyi providing to Bagir all fabrics and the manufacturing equipment by the end of September 2019. Over the last 18 months the Company has received 3.3 million dollars of non-refundable payments from Shandong Ruyi.