On one hand, Shanghai Zhongfu Import & Export Co., Ltd. (referred to as "Shanghai Zhongfu") was in talks for the full transfer of the Pierre Cardin trademark. On the other hand, it also transferred some leather goods and related trademarks to a Wenzhou-based business group. This move sparked strong discontent among Shanghai’s service sector.
Yesterday, the Shanghai Public Service publicly criticized Mr. Cardin, a globally renowned figure and business magnate, for lacking basic business ethics. Yao Yaoming, head of the Shanghai Legal Service Department, told CBN reporters that they had already sent a formal letter to Pierre Cardin. If the acquisition process remained unclear, they would have no choice but to take more concrete actions.
The term “One Woman Two Married†has become a hot topic in this dispute. In August, Chen Liang, chairman of Shanghai Zhongfu, expressed excitement after months of negotiations with Pierre Cardin. He announced that Shanghai Zhongfu and Pierre Cardin had signed a framework agreement for the overall acquisition, with both sides agreeing on key terms.
At the end of August, Shanghai Zhongfu officially stated that its acquisition had been approved by the Shanghai Municipal Commission of Commerce and the National Development and Reform Commission. This effectively positioned Shanghai Zhongfu as the sole candidate for acquiring the Pierre Cardin brand.
However, things quickly turned sour. Shanghai Zhongfu learned that in mid-September, Pierre Cardin had transferred part of the trademark, including leather goods, to another domestic company — the Cardan Road Group controlled by Sun Xiaofei. According to reports, the total value of the trademark transfer was 37 million euros, with 33.3 million euros already paid by September, including 6 million euros received as early as May.
“This clearly violates the overall purchase agreement between Shanghai Zhongfu and Mr. Cardin,†said Chen Liang, who called the situation unacceptable. “If we go back to the beginning, we must acquire Pierre Cardin together with others. It is still unacceptable.â€
Surprisingly, Sun Xiaofei and his group took a firm stance. “We have signed an agreement with Mr. Cardin and have already paid part of the money. It can't be changed,†he told CBN reporters. “If the outcome is not ideal, we will file a lawsuit against Pierre Cardin and take legal action to reclaim the trademark rights.â€
This seems like more than just a single lawsuit. Shanghai Zhongfu insisted that the issue should be resolved through legal channels. “Shanghai Zhongfu is the only buyer approved by the National Development and Reform Commission. Any transactions involving Mr. Pierre Cardin by other companies are not recognized by Chinese authorities,†said an official from the Shanghai clothing industry.
“If this is true, Pierre Cardin is suspected of using the sentiment of domestic companies toward the Pierre Cardin brand to stir up competition and seek improper benefits,†Shanghai Zhongfu said. If no response is received from Mr. Cardin, they warned they would take legal action to hold him accountable and cancel the unfair transactions.
Both sides are now locked in a battle. Sun Xiaofei, owner of the Cardan Road Group and a major player in the Italian Dupont brand, is backed by three other Wenzhou businessmen. Together, they represent some of the most powerful entrepreneurs from Wenzhou. According to insiders, their financial strength should not be underestimated.
Shanghai Zhongfu, on the other hand, is backed by China Apparel (000902.SZ), which is owned by the state-owned enterprise China Hengtian Group. Its financial resources are substantial and cannot be ignored.
Behind the scenes, there's also a struggle over control of the brand. It is understood that Sun Xiaofei and Chen Liang met at a Pierre Cardin promotion event in April. At the time, several groups, including those from Hong Kong, Taiwan, and Sun Xiaofei, were interested in acquiring the brand. A bid came from a group in Taiwan, and each group had around 10 people present, making the scene quite intense. At that time, Chen Liang didn’t know much about Sun Xiaofei.
According to insiders, Sun Xiaofei’s decision to approach Mr. Pierre Cardin was linked to his plan to revive the brand. He and his team conducted a detailed investigation, and their report deeply impressed Mr. Cardin.
What was awkward was that Sun Xiaofei had previously claimed he would also acquire the entire Pierre Cardin brand. However, two months later, the deal shifted to just leather goods.
Compared to Sun Xiaofei, Chen Liang has the support of more than 20 domestic agents for Pierre Cardin. Industry insiders say that Shanghai Zhongfu and Pierre Cardin’s agents have worked together for years, giving them a significant advantage in sales networks over Wenzhou-based companies. The continued support from these top-tier domestic agents remains a crucial factor in the ongoing conflict.
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