Fosun completes acquisition of majority stake in Wolford

Austrian underwear brand Wolford confirmed in March that Fosun would acquire a majority stake of 50.87% of its capital, but the deal was only finalised last week.

The high-end lingerie brand, which reported narrower losses and sales growth of 1.79% in the nine months ended January this year, is delighted with the acquisition. “The shares acquired by Fosun confirm once again the attractiveness of our brand and our growth prospects,” enthused Axel Dreher, Wolford’s CEO since 2017. And indeed, it seems like an opportunity for the brand to start fresh after years of successive restructuring plans, with the latest package of cost-cutting measures announced only a few months ago.

“With the support of this important majority shareholder, we will be able to accelerate our expansion and develop our promising online business, as well as redefine our market presence and return the company to a growth path,” explained Brigitte Kurz, CFO of Wolford, who does not seem to rule out the possibility of further restructuring measures.

Fosun, the Chinese conglomerate that has owned Club Med since 2015 and has built a name for itself in a variety of sectors, including real estate, entertainment, steel and insurance, took over the struggling Lanvin in February. With this new fashion conquest, this time in lingerie and hosiery, Fosun is confirming its desire to play a major role in the high-end sector.

“While China continues to be the driving force for the luxury goods market, Wolford can leverage Fosun’s growing resources in China to expand and strengthen its position in the luxury goods market globally, while maintaining its exceptionally high-quality manufacturing in Europe,” said Joann Cheng, president of Fosun Fashion Group, the fashion arm of the Chinese investment firm.