London - YGM Trading has confirmed the sale of British heritage brand Aquascutum to Jining Ruyi Investment Co Ltd, a holding company owend by Shanding Ruyi Technology Group for 117 million dollars (95 million pounds).

On Thursday evening YGM Trading announced it had reached an agreement to sell the manufacturing, retailing and intellectual property rights of Aquascutum to Jining Ruyi investment, as company directors believe "further and substantial investment would be needed to boost the Aquascutum business" in an increasingly competitive marketplace which may place pressure on its overall profitability.

YGM Trading first acquired the British brand out of administration in 2012 for 15 million pounds. Since then the company has invested heavily in strengthening the business by opening new stores and boosting its marketing activities to enhance the brand's global value. However, due to the unstable market and slowdown in the luxury market, YGM Trading felt it was time to find a new owner for the brand.

"The apparel industry (in particular the luxury and premium brand markets which the Aquascutum business belongs) continued to face tremendous challenges," said YGM Trading in a statement. "Coupled with the intensifying market competition and increasing choices for consumers, the market and business environment for the apparel industry remains very challenging."

The acquisition of Aquascutum sees Shandong Ruyi Technology Group, a leading textile manufacturer in China, boost its luxury fashion brand portfolio. The group purchased SMCP, the French group which holds premium brands Sandro, Maje and Claudie Pierlot, last March and recently acquired a minority stake in TM Lewin. The Chinese Group also holds an 80 percent stake in fabric specialist Taylor & Lord and jointly owns Harris Tweed manufacturer Carloway Mill.

Photos: Aquascutum, Facebook