InStitchu strengthens partnership with Dayang Group
Menswear retailer InStitchu has enhanced its partnership with China’s Dayang Group through a $12.8 million restructuring aimed at streamlining operations and driving retail growth.
According to the Australian Financial Review, Dayang has increased its stake in the Australian business to 35 per cent from 20 per cent through a fresh equity injection, further cementing a production partnership dating back several years.
In 2018, Dayang invested $3 million in InStitchu to support international expansion, technology upgrades and faster production capabilities.
“This marks a significant step in the next chapter of InStitchu,” founder James Wakefield told the AFR.
“We’ve built infrastructure across retail, manufacturing and technology. This transaction allows each pillar to scale independently while further strengthening our global production partnership with Dayang.”
The restructuring follows a strategic review conducted by advisory firm Tiger & Bear Partners, which was appointed last July to explore a potential sale.
Under the deal, InStitchu has sold its 45 per cent stake in wholesale platform Jerome Clothiers, which operates across Amsterdam and Melbourne. It has also divested its proprietary software arm, Taper.ai, to Jerome Clothiers, while continuing to use the platform as its core system.
Founded in 2012 by James Wakefield and Robin McGowan, InStitchu currently operates 13 showrooms across Australia.
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