Giordano International’s largest shareholder, the family investment vehicle of Henry Cheng, has sought the removal of the apparel retailer’s CEO Peter Lau. The move comes two years after the Chengs’ failed takeover bid for the company lapsed.
The family, holding 24.06 per cent stake in the company, wants Colin Currie to succeed Lau as Giordano International’s new CEO. Henry’s children, Sonia Cheng and Christopher Cheng, were also suggested to become non-executive directors.
The Chengs required the implementation of the executive change to happen as quickly as possible.
“The board is seeking legal advice as to the appropriate course of action to be taken,” the company said in a statement.
In 2022, the family of Hong Kong’s third-richest individual offered to acquire the company’s remaining shares for up to US$325.6 million. However, the bid lapsed after the threshold – acceptance by shareholders representing 50 per cent of Giordano’s shares – was not reached.
Giordano, which has more than 1700 stores across Asia and the Middle East, was founded by media magnate Jimmy Lai Chee-ying, who left the business in 1996 to focus on his news empire.
The company posted a net profit of HK$190 million (US$24.3 million) in the six months ended June 30 and anticipates net profit of HK$135 million to HK$155 million in the second half ended December 31.