Gieves & Hawkes, the British Royal Family's Favorite Tailor, Secures a Rescue

Gieves & Hawkes, a tailor to royalty and world leaders for centuries, is back in British hands after five years of Chinese ownership that threatened its survival. The company was founded in 1771 and has been passed down through generations of British families. It was sold to the Chinese conglomerate Fosun International in 2012 for £8 million. However, the company has struggled under Chinese ownership and has been losing money for the past few years. Fosun has now sold the company back to its original owners for £15 million.

The company, whose stable of brands includes a department store chain and discount sportswear retailer, said Friday it had acquired the Savile Row suit maker in a deal overseen by administrators appointed to sell the assets of its failed former owner.

The deal would secure the future of an iconic 250-year-old brand, Chief Executive Michael Murray said. The terms of the deal weren't disclosed.

Gieves & Hawkes is a British suit making company with a long history dating back to 1771. It is located at London’s No. 1 Savile Row, which is considered to be the most famous address in tailoring by people in the trade. The company has outfitted generations of monarchs, world leaders and celebrities, and is synonymous with high-end British suit making.

Gieves & Hawkes is a British clothing company with a long history. Originally a military outfitter, the company made the uniform that Lord Nelson wore at the Battle of Trafalgar in 1805, and later the uniform that the future King George VI wore on his wedding day in 1923. Wartime leader Winston Churchill and Queen Elizabeth II both sported its creations. More recently, Gieves has been favored by King Charles III, holding a royal warrant marking it publicly as one of his official suppliers.

However, the 2017 acquisition of Gieves by Chinese textile firm Shandong Ruyi Technology Group Co. put the tailor on the brink of collapse.

Qiu Yafu, chairman of Ruyi, bought Gieves as part of a bid to create a Chinese rival to French luxury powerhouse LVMH Moët Hennessy Louis Vuitton SE.

Mr. Qiu has amassed a portfolio of luxury and textile assets in Australia, Britain, France and the United States. Initially, he promised to invest generously in his new global properties. However, by 2019, he was struggling to repay $6 billion in debts accumulated during his three-year buying spree.

Ruyi's financial troubles at home then had a ripple effect through Mr. Qiu's empire, causing a shortage of funds for Gieves and its other international units.

Last year, Trinity Group, Ruyi's Hong Kong-based subsidiary and Gieves' direct owner, went into liquidation after failing to repay debts. This put Gieves up for sale, but the process dragged on, raising concerns that the tailor could disappear.

Since the pandemic began, Gieves has laid off many of its staff, reducing its capacity, according to people familiar with the company. However, it has retained its premises on Savile Row as well as a handful of other U.K. stores.