It is now known that BAPE was suffering due to financial decline. The WSJ reported that in recent years, the Nowhere Group has witnessed significant losses in profit. For the monetary year, ending August 31st, 2010, the company recorded a net loss of 119 million yen, a minor improvement from their previous loss of 267.4 million yen during the previous year. The company also had liabilities estimating 1.03 billion yen in the year ended August 31st, 2010. In addition to the purchase of the company, I.T will ensure the company’s loans of 2.6 billion yen.
During a press release, I.T stated they will “promptly rationalize Nowhere Group’s capital structure to restore a healthy balance sheet and positive cashflow. It is anticipated that measures to be taken will include implementation of stringent cost controls.”
“We are delighted about this acquisition of Nowhere, which owns of some of the most sought-after brands in street wear fashion,” said Sham Kar Wai, I.T chairman and chief executive, in a statement. “We believe that this acquisition will broaden the brand portfolio of our Group and increase our market share in the street wear fashion in Greater China. It will also help position us better in tapping into the international market.”
BAPE was founded by Nigo in 1993, as a single shop within Tokyo’s trendy Harajuku district. The company clothing, all designed by Nigo, would typically retail around $75 per shirt, while the jeans, sneakers, and hooded sweat shirts would sell for hundreds. They became a popular fashion among Japanese men, and soon after reached the wardrobes of Hip-Hop artists such as Kanye West, Lil wayne, Pharrell Williams, and Jay-Z.
It is reported that Nigo will remain creative director for BAPE for the first two years with I.T, in order to oversee a smooth transition.
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