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Ever-Glory & La Chapelle to create LA GO GO Fashion
Jan '08
Ever-Glory International Group Inc a leading apparel manufacturer in the People's Republic of China announced it entered into a joint venture agreement with Shanghai La Chapelle Garment and Accessories Company Limited (''La Chapelle Garment'') to begin the widescale launch of Ever-Glory's private-label clothing line.

The agreement will create Shanghai LA GO GO Fashion Co Ltd (''LA GO GO Fashion''), which will manufacture and market Ever-Glory's inaugural LA GO GO brand toward young, professional women.

''The development of LA GO GO is an important step for the new year, as we look to broaden our offerings to the domestic Chinese market and diversify our revenues by selling these higher-margin products,'' said Mr. Yihua (Edward) Kang, Ever-Glory's Chief Executive Officer.

''The LA GO GO brand will provide high-quality, stylish fashions to our core customers - younger, professional women who love to shop and tend to spend more on clothing and accessories.''

In conjunction with the agreement, Ever-Glory agreed to invest US $1.4 million in La Chapelle Garment, for a 10% stake in La Chapelle. In turn, La Chapelle will use the proceeds to finance the joint venture.

Under terms of the agreement, Ever-Glory, through its subsidiary Nanjing Goldenway Garments Co Ltd, will hold a 60% stake in LA GO GO Fashion, while La Chapelle Garment will hold the remaining 40% interest.

La Chapelle Garment currently operates a network of 350 specialty counters in more than 40 cities in China, including Beijing, Chengdu, Nanjing, Shanghai, Suzhou and Tianjin.

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